Dell Example of Effective Usage of Internet Technologies - Case Study Example

Introduction Dell Inc. is an international company based in the US. It was started in the nineteen eighties by the current CEO Michael Dell who initially called it PCs Limited. (Frigo et al, 2006)This company was founded under the principle of selling computers directly to clients so as to understand their needs. (Fredman, 2001)The company kept expanding and in 1987, it reached the United Kingdom. It then became one of the most reputable servers and PC sellers in the world. In fact as of 2008, the company now boasts of being the second highest computer seller in the world. Some of the products offered by the company include; televisions, peripherals, software, network switches, servers, data storage devices and the most common product; its Personal computers. (United States Securities and Exchange Commission, 2008) In order to get to such a position, it was essential to employ sound internet technologies and e-marketing principles. The paper will be an examination of how Dell Inc. and other companies have employed internet technologies and a forecast of the future of these technologies will also be analysed. E-business background in DELL Dell has employed internet technologies in virtually all spheres of its business processes. (Dedrick, 2007) First of all, the company has offered a series of services that are based on internet technologies and some of them include; Dell On Call Dell Support Centre Dell Business Support Your Tech Team Dell On Call is a service that largely dwells on the elimination of threats to data storage through viruses or spyware. In order to manage this service, the company communicates to its consumers regularly through the internet. (Koehn, 2001) Additionally, the process of eradicating those viruses and spyware is made possible by internet technologies. The Dell Support Centre is closely associated to the former mentioned service. However, in this particular area, more emphasis is given to hardware purchasers within the company. (Dedrick, 2007) The company formed this alternative after the realisation that most of their consumers were highly in need of accessing information about their purchases or the devices that they had already bought. Upon visiting this company's support website, one is likely to see the following divisions; Drivers and downloads, technical support, order status and customer service. Under the drivers and downloads section, consumers can get assistance about drivers and downloads that they are dealing with. Under the technical support section, one is likely to find the tag 'I need to solve a technical problem' (Dell Support Homepage, 2008). Under the order status section, consumers who want to find out how soon they will receive their products can be helped. Lastly, under the customer service section, consumers can ask for more information about the product that they have purchased. (Kraemer, 2002) All these options go a long way in enhancing the purchasing experience within this company. The first thing that one needs to note is the fact that their support system is located on the internet. This can be deduced by the fact that they have a homepage. Additionally, the entire process of dealing with a problem is handled across the internet hence promoting communications between them. Through the 'chatting via online' alternative in their Support Homepage, Dell can ensure that all the questions their clients have about their products are adequately solved. Besides that, there is a forum for interacting with other consumers in this website. The company has also broken down the kind of assistance offered so that consumers can get direct access to experts in a certain area. For instance, when a consumer is in need of fixing the wireless local area network, then they can go to the wireless networking support section, if they need to increase their antivirus settings, then they can go to the security spyware section. All these pieces of information are valuable on-line to boost consumer experiences. (Halderman et al, 2008) The Dell Business Support service largely deals with software and small hardware support issues where consumers can call a certified technician with their problems without necessarily waiting in queues for longer times compared to other normal support personnel. Again internet technologies have enabled this service to become a reality because clients can apply for this contract online. (Halderman et al, 2008) In order to boost online purchasers, Dell offers a special service known as the Your Tech Team service. Here, consumers who purchased their items online are given a technician to work on their problems. In order to do this, they are required to make queues in Florida. However, other queues for people who purchased their devices directly (i.e. for online or on-call consumers) are much longer than this queue. E-marketing has been particularly instrumental for Dell because of the nature of its business model. Dell firmly believes in meeting client needs, consequently, its manufacturing processes are normally carried out close to their consumers and the company makes a point of keeping low inventory. In other words, the company is using a Just In Time Model of doing business. Experts agree that online communication is essential in implementing Just In Time Management. In Order for Dell to contact their component suppliers after acquiring a contract, they need to exchange a lot of data about the kind of devices they require. This is possible through internet technologies. Many other companies relying on the Just In Time business model also embrace the role that technology plays in their lives. (Koehn, 2001) It should also be noted that Dell Inc. is fond of manufacturing their desktop machines in their company premises but they normally outsource notebooks essential in the running of the machines. This can be achieved through the execution and implementation of sufficient online communication between the outsourcing companies and Dell Itself. (Fortune, 2006) It should be noted that a large chunk of Dell's advertising is done across the internet; this is usually combined with a series of media platforms such as catalogs, newspapers and television. Dell's marketing is driven by offering low prices all year long. In order to communicate such messages, the company employs internet technologies. (Mueller, 2002) It can either place this information on their homepage or place advertisements in other websites. Part of Dell's method to counter the losses associated with offering lower prices is through internet selling. Additionally, the company has opted to relocate their customer care services to low cost countries such as India. Consequently, internet sales have been the life line that has kept this company's marketing endeavours successful. Analysis of current and future use of internet technologies with particular attention to e-marketing background Internet technologies within all business environments are likely to create greater innovation in the future as they have in the present. Other areas that are likely to improve include; Security Reliability Scalability Taking the example of Dell; the latter company's supply chain management system has been streamlined as a result of internet technologies. Other companies such as Marks and Spencer use Internet technologies in order to reduce retail sale agents. Consumers can simply check themselves out of a chain of stores. In the future, internet technologies are likely to boost the level of innovation in delivering business solutions. (Hasulo, 2002) One example of how innovation may be enhanced in the future through the internet is through facilitation of better internet speeds. (Solock, 2003) If internet technologies continue growing the way they are growing today, then more companies can reach their clients easily. Through fast internet speeds, it will be possible to ask consumers about their product preferences more easily and it will be equally easy to receive prompt responses from them too. All in all, the business environment will have improved. (Schrock, 2004) However, some people predict that security in the future will not be as precise as it is today. (Swire, 2002)Proponents of this proposal claim that internet technologies will have boosted the number of people who are using information or those that form part of the infrastructural networks required to make internet technologies workable. (Sonoma State University, 2003)Consequently the issue of technology will be something that can be highly comprised under such high numbers. However, proponents of this idea may be too pessimistic. One only has to look at how companies invest numerous resources to protect their consumer's privacy. Online purchases account for a very high percentage of Dell's product. However, this company has protected consumer's personal information thus depicting the fact that e-marketing can actually work. The same may be said for numerous other companies such as E-Bay that rely solely on the Internet in order to conduct all their sales. (Raymond, 2003)Therefore, it is possible to handle numerous consumers through the internet without compromising their security. Besides that, the future is likely to record greater internet security when more people get informed about the strategies that they need to use in order to avoid security risks such a credit card fraud. (Pridgen, 2003) Reliability is an important aspect that will be heightened in the future than it will be presently. (Smith and Phillips, 2000)This will be seen in various business segments and one of them is through shipping or delivery. Currently, certain companies have led the way in illustrating just how useful internet companies will be in providing better services. UPS (which is a shipping company) has encompassed internet networks to streamline their delivery routes. Through application of internet technologies, UPS has saved close to twelve million litres worth of fuel thanks to the internet. Additionally, Nestle (an international food manufacturer) has saved up a lot of transport costs by receiving all their orders from supermarkets through the internet. If the internet has become so central to business processes today, then one is likely to see more of this in the future. For example, companies that were using manual methods to conduct shipping are more likely to record greater use of the internet. This will all be in an effort to boost the reliability of their services and thus their competitive advantage. (Reid, 2003) E-marketing is likely to create greater scalability in the future through internet technologies. Whenever one examines the numbers of blogs that are currently in the web then one can actually estimate the potential of internet user growth in the future. (Reid, 2003) There are certain challenges that such kinds of approaches can bring to any company. Taking the example of Dell; the company has a provision for consumer blogs where those clients with questions can ask their fellow consumers about them and receive answers from them. There are also other blogs, chat rooms and internet interactions that allow exchange of information about companies, their products and their prices too. In the future, it is likely that the consumer will be more empowered than they are today. This is because they will be highly knowledgeable; about where they can get the lowest prices or the best quality for their items. Consequently, companies will have to be more vigilant then. (DiGiovanna, 2005) Quality standards will have to go up and price wars may be increased merely as result of internet technologies. (Stepp, 2002) In the future, the business environment and marketing especially is likely to employ the internet more than any other media platform to advertise their commodities. In the past and present, many companies tend to divide their marketing campaigns between televisions, telephones, videos and the internet. However, this is likely to change in the future with more advertising resources being dedicated to the latter category. Through You Tube, many Internet users can download videos quickly today. In the future, we are likely to see more convergence of these media platforms. Internet protocol network televisions (IPTVs) are just one example of how convergence is occurring today. Others here include Video On Demand and many more. Across the business front, companies are now offering internet, television and telephone services all at once. (Federal Trade Commission, 2003) These are all aspects that are likely to grow in the future. Many companies are continually embracing the possibilities of these in marketing. Dell for instance has a number of advertisements being viewed by You Tube users. Additionally, some of the magazines that Dell uses to advertise are also found online. More of this approach is likely to occur in the future as most of them will be interested in the things that they can get from this access. (Oppenheimer, 2002) Conclusion and recommendations Dell is an example of a company that has embraced the full benefits that come with utilisation of internet technologies. Their customer services are largely found online thus contributing to better relationship marketing with their clients. Additionally, the company conducts a large share of sales online. In the future, one is likely to find greater reliability in service provision especially due to faster internet speeds. This may also be backed up by greater scalability which will lead to more consumer empowerment. Overall, companies and marketers specifically may have to boost their competition through better prices and high quality. Internet security may also be improved in the future due to higher levels of innovation. References United States Securities and Exchange Commission (2008): Dell Inc; Report For the fiscal year ended: February 1, 2008 Frigo, M. Belvard, E. & Needles, B. 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