Dell Inc. is the multinational technology corporation that develops, sells and supports computer and related products and services. In 1984 the company was funded by Micheal Dell in his dorm room while he was a 1st year university student . Nowadays, it is one of the world’s largest technological corporation. What is the most critical key of the Dell’s dramatic success?
The way that product are sold by the company is a revolutionary change in the personal computer industry. Its unique supply chain management and and electronic commerce contributes a huge part of its success. The computers are sold directly to customers through Dell’s website on the internet. It eliminates the wholesaler and retailer in the supply chain. There are four advantages. First, fast reaction to the customer order. Products are produced when needed, thus reduce the cost of inventory storage and management. Second, better customer service. the customers reaction and complain can forward to and respond by Dell directly. Third, the supply chain is made more powerful and efficient. Forth, since the wholesaler and retailer are reduced, the cost is lowered by an significant amount. The perfect combination of the above four elements enable Dell inc to become the successful world class IT corporation.
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