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Essay / Dell Case Study - 1061
Business ModelDell has achieved remarkable success in a short period of time by following a direct business-to-customer model. By selling computers directly to customers, they were able to better understand their needs and provide effective solutions to meet them. Dell made PCs to order, so customers only got what they wanted. Dell's just-in-time inventory system allowed them to order only the parts requested by customers, thereby maintaining minimal inventory and benefiting from cost reductions which, in turn, were passed on to customers. Dell's extensive use of e-commerce has contributed to increased cost minimization, reduced ordering and delivery times for customers, and customization. There are three golden rules at Dell: disregard inventory, always listen to the customer and never sell indirectly.Key Issue(s)China has been identified as a very promising market and Dell has set its sights on to improve his ranking from seventh to second. place in this PC market. However, Dell faces many challenges in this market. The Chinese government actively promotes the Chinese PC manufacturer “Legend” which dominated the market; Internet penetration is relatively slow; software piracy is rampant; competition is intense. Additionally, there is fierce competition for market share and Dell's competitors have started to imitate Dell's business model. Dell must determine how to change its strategy to succeed in the Chinese market. Alternatives and evaluation1. Open Dell retail storesThe Chinese are not comfortable with purchasing high-priced products that cannot be viewed before purchase. This is one of the reasons Dell invested in door-to-door sales calls. If Dell were to open a retail location, the middle of paper option would address customers' hesitancy to make such a large purchase for a product brand that is not well established in China. This option will allow clients to transfer residual risks and implement a disciplined approach to technology rotation. I think in China, customers will be more likely to choose Dell products because it is somewhat of a “try before you buy” opportunity. There won't be as large an initial investment, and they can further be assured that the purchase they are making will not become obsolete technology in the near future. I believe this option will help Dell establish a more recognized and stronger brand and will allow Dell to establish long-term relationships with its customers. This option is in line with Dell's growth plan in China and will allow Dell to leverage its strengths into a successful strategy..