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Strength 1Dells Direct Business Model which consist of the five principles 61607Most efficient path to the customer - through direct relationship with no intermediaries to add cost and confusion 61607Single Point of accountability - so that resources necessary to meet customer needs can be easily marshaled in support of complex challenges 61607Build-to-Order - provide customers exactly what they want in their computer systems through easy custom configuration and ordering Thus eliminates the maintenance of expensive inventory 61607Low-Cost Leader - highly efficient supply chain management which eliminated inventory thus reducing stocking cost 61607Standard-Based Technology - unlike proprietary technologies standards give customers flexibility and choice 2Supplier Relationships Dells highly efficient and integrated supply chain allows it to keep only four days of inventory which allow the company to provide customers the declined component prices 3Pricing Dells highly efficient supply chain has gain advantage from the reduction of inventory maintenance cost and the depreciation of component price which allow reduction in pricing for their customers 4Strong CRM Build-to Order gives customers the flexibility to choose the kind of configuration they want the direct model which sells directly to customer through the internet which gives the customer lower price and higher convenience Dell is able to gives its support and service directly without the middlemen or resellers and maximum profitability to their customer in pricing thus enhancing the value of CRM Weakness 1Lacked of solid dealer relationship Dell does not have a strong relationship with dealer due to their direct model which sells directly to their customer This has a big impact their brand name because it has resulted in lack of support from dealers to help promote their brand to consumers 2High dependency on component suppliers Dells dependency on component supplier such as Microsoft and Intel due to majority of PCs platform is based on MS Windows and Intels processors 3Research and Development
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