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Contents Case History2 Introduction2 Key Marketing Principles3 Application4 Justification6 The Direct Business Model7 Harnessing the Internet7 Low-Cost Leader7 Market Segmentation8 Business-to-business Market9 Customer Relationships9 Sales and Marketing10 Conclusions10 Appendix 111 Appendix 212 Appendix 313 Appendix 414 Appendix 515 Key Events16 References18 Case History Introduction Everything was started during his last year at college on 1984 when student at that time Michael Dell decided to establish a company with a simple vision and business concept that personal computers could be built-to-order and sold directly to customers through telephone and direct mail before 1994 and almost exclusively through the Internet nowadays Kraemer et al 2001 Since its launch Dell Computer has experienced an upward path until today that is the leading company in the PCs market worldwide dominating over its main competitors see Appendix 1 Dell Computer Corporation operates in both business-to-consumer and business-to-business market concentrating more on the business-to-business market as it can be realised by looking at the companys product portfolio that is intended more on businesses in appendix 2 as well as its web site in appendix 3 it can be observed that Dells main customers are small medium and large organisations as well as public government education and healthcare institutions Dells mission is to be the most successful computer company in the world at delivering the best customer experience in markets it serves dellcom In order to achieve this Dell has developed a sophisticated business model concentrating on the low prices product operations build-to-order concept manufacturing and logistics as well as on the effective use of the a direct distribution supply chain bypassing intermediaries the development of customer relationship and the after sales service support The Monroe Street Journals 2003 especially in organisations that uses complex products such as servers network switches etc Key Marketing Principles In an article written on 1997 G McWilliams tried to identify Dells secret to success He named Dells success into one word speed The company
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