Comparison Of A Manufacturing Model Of Dell's Business Model
Dells business model is built on integrity and they believe in following the law. They believe that following the law is important to being successful in any business endeavor. Each employee is held to the highest standard when it comes to integrity. The department that handles this is the Global Ethics and Compliance department. This department makes sure that the company stays in line with all government regulations.
The strong …show more content…
This has increased Dell’s market share in a short period of time. Compared to a traditional manufacturer who has to forecast what is in demand. Dell takes orders directly from the customer. A traditional manufacturer will receive their parts from outside sources.
Dell gets the parts shipped to them from the outside company. A manufacturer makes their own parts, while Dell puts the part together on their own. This eliminates quality issues when it comes to the building of the computer. The traditional manufacture also builds there, own computer, but after it is done it sits in a warehouse. Here it waits to the transported to it final location.
Dell sends the completed computer directly to the customer as soon as it is completed. While the manufacturers computer sits in a retail store until it is purchased. This could be months depending on the brand; also their profits are being cut because the store has to be paid. There are many strong points to this system, Dell deals directly with the customer. Dell also makes computers that each person …show more content…
This creates success for deal by reducing the level of inventory for the company. Dell’s direct business model works closely with supply chain management too cut cost. IT and JIT work together to get the job done for Dell the direct model continues production in the long run. IT sales end at the computer terminal and Dell starts at this very position.
Many companies still use the traditional method in selling a product. When Dell started the direct approach it opened a new wave of customers. People probably thought they were silly for using that method of selling. But Dell saw the future of technology and how it would be a part of our everyday lives. Another strong point is the speed in which the product is delivered to the customer.
Dell promises a seven day window to receive your product. Dell also has a wonderful system that gets the computer completed in time. It’s a system where they are in direct contact with the manufacturer. This system gets the computer completed in a timely manner. Also when this happens the customer is always in many cases