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Dell Key Success Factors

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Category: Business

Autor: anton 20 January 2011

Words: 582 | Pages: 3

Dell Key success factors

1. Culture

Dell's winning ways begin and end with its culture. Dell has created a disciplined culture that relentlessly focuses on optimizing its operational model, responding to its customers' needs and sustaining a self-motivated workforce.

2. Information is a powerful strategic weapon

• Information is king at Dell - it is widely distributed, analyzed and acted upon. People know where they and their business units stand at any time.

• According to Dell: "If the folks in our consumer business notice it's 10am and they're not getting enough phone calls, they know they have to do something: run a promotion on the web starting at 10:15, or change their pricing or run more ads. They can't wait 30 days after the end of the quarter to figure it out." Rollins adds: "Everybody sees everybody else's numbers and gets to help with suggestions about their businesses. Openness and sharing are part of success at Dell."

• Dell has made a serious investment in understanding its customers' activity in real time and then uses this information to constructively build its business and its winning culture.

• Companies that rely on distributor for information about how end customers use their products but dell have an advantage as they are the focal point for customers. They can obtain info through their websites.

3. Being a low cost provider creates flexibility and market advantage

Being a low cost provider unlocks market opportunities

4. Product development is customer and shareholder focused

Because they have taken the time to identify and measure the kinds of R&D that help them differentiate their products, they are able to allocate capital offensively, not defensively.

This is a crucial distinction; particularly in fast-moving, ambiguous markets where getting even a quarter's jump on competitors can have huge upside. This approach rewards both customers and shareholders.

Learning to compete like Dell on operational excellence and customers' interests maximizes the returns on investments.

5. Boldly challenging the status Quo is the path to market leadership

Boldly challenging the status quo, when successfully executed, changes market dynamics.

6. Technology & Manufacturing

Dell has expertise in IT & Ability assemble products to the buyer’s specifications& track and trace products (serial numbers on parts) until it gets to the user.

7. Marketing & skills & capabilities

Clever advertising, as seen in case stuffy where there are shortages occur they sell something else instead for cheap or free with another item to get the customers attention away and they handle the situation like this.

Supply chain management capabilities and global distribution capabilities with plants near distributable regions.

8. Others

- Payment must be easy and safe

- Delivery must be on time and performed securely

- Lower operative costs so that the e-commerce market will have a chance to compete with the traditional market

- Concentrate on the core business and avoid carrying out several services at the same time

- Face-to-face” contact to a larger extent – make the customer more loyal to the e-commerce company

- Strong customer relationship

- As dell knows the rules and regulations within the countries they are selling therefore mergers are more easy and they can cut barriers without difficulty

- We believe that mix of the different approaches is the best solution for a successful customer relationship.

- In Japan and china “face-to-face” contact is vital because it makes the customer feel prioritized, appreciated and the customer becomes loyal to the ecommerce company.

And also stated in the case study that few people in china use credit cards and in Japan people want a feel of the product before they buy it.

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