Dell Computer Corporation is more successful than its competitors because of its 'Direct Marketing' strategy. Dell figured out the direct sales model early and embraced the internet early. It also entered the business market at the right time, promising good enough prices combined with good enough service.
             The competitive advantages of Dell over its competitors are:
             • Dell's main competitive advantage has been its direct marketing strategy. It is about giving customers what they want, when they want it.
             • Dell has JIT inventory system and very good supplier integration. This has helped in cutting down inventory costs and also reduces the lead time in serving customer order. The case specifically mentions about Dell's shipper shipping Dell computer along with a monitor from Sony directly to customer. In contrast, IBM gets its supplies from supplier to its assembly and then sends the whole package to the customer. This involves sufficient cost and time delay.
             • Dell does not have any resellers or distributors in its supply chain and hence there is minimum cost in selling to customers. This way Dell gets better price margins than its competitors.
             • Dell has successfully catered to large lucrative customer segments by employing outside and inside sales reps to cater to these customer needs. These customers give repeat orders and hence locking of these customers has been a significant competitive advantage for Dell.
             • By following direct marketing strategy, Dell can have sufficient information about its clients and hence is able to serve the customers better. With the help of this information, Dell has been able to provide high level of customer service.
             • The flexibility provided by Dell to its customers in buying their systems coupled with excellent customer service has raised customer's expectations. This has forced Dell's competitors to focus o
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