Analysis of Dell Online - 711 Words

Analysis of Dell Online Introduction: 1) In July 1996, Dell Computer had launched its online website, www.dell.com 2) Dell also developed Premier Pages, online interfaces with its key corporate accounts. Story of Dell: * In 1985, Dell shifted it’s company’s focus to assembling its own brand of PCS amp; business grew dramatically with $70 million(Rs.364 crores) in sales at the end of the 1985. * Dell’s success continued through 1992, until in 1993, it faced an operating loss for 1st time. * Dell’s product line evolved with PC market. * Dell came with Inspiron line amp; introduced its PC\LAN product the power edge in 1996 amp; workstations in 1997. * To lower the costs of ownership, Dell also worked with†¦show more content†¦* Role of sales rep changed significantly depending on type of customer being served. PC Distribution Channels: * In late 1990’s, PC distribution channels remained fragmented, with major manufacturers using a variety of channels to bring products to market. * Dell was sole major manufacturer to focus on Direct Channel. * 3 Non-direct channels were: 1. Retail 2. Indirect through VAR’s..? (DAS Auto, Vijay sales) 3. Indirect through national resellers. (croma,house of laptop) Dell Goes Online: * Mid 1990s saw a dramatic leap forward in use amp; functionality of Internet. * Michael Dell had become drawn to the â€Å"buzz†(excitement) about the Internet....? * Dell has been positioned for something like this since its beginning. Transactional Business Online: * 6 Months - $1 million(Rs.5 crores)/day in Revenues.(customers visited per week 1,50,000) (per customer revenue=Rs.2400) * 3 more months - $2 million(Rs. 10 Crores)/day in Revenues.(2.5lacks)(per customer revenue=Rs.2800) * 6 more months - $3 million(Rs. 15crores)/day in Revenues. Strategic Decisions: * Dell faces greater challenges. * Its price edge is gradually eroding.(price advantage) * It has yet to prove that users in many countries are willing to buy direct, * Its competitors fully understood the trick that’s driven Dell’s success. Conclusion: Dell is simply a success story; it shows how one can gainShow MoreRelatedSwot Analysis of Dell Computers972 Words   |  4 PagesSWOT Analysis of Dell Computers Strengths, Weaknesses, Opportunities and Threats Analysis Dell Computers relies on its Direct Method to sell its products. This model is not perfect.. Addressing its flaws is key to maintaining Dell s competitive edge. 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