Online Retailing - Assignment Example

Online marketing is inspired by the development and increased in technology. Brick and mortar business is a description of the business that is entirely based on the internet differentiating from that which operates in the practical environment. Of all the methods and strategies of marketing, there are advantages to each of the models (Anderson 1996). Dell Inc has adopted online marketing and it is also working on mass customization where there is a mass production of individually modified products and services to meet the diverse customer needs.

This is a more refined means of customer satisfaction where the prices are also comparable to those of standard products. Online retailing is generally adopted by traditional retailers who have widespread logistical and supply stores (Brown 2001). The most important aspect that enables success in online marketing is the fact that traditional companies are better placed to establish an online presence than starting up a new marketing strategy from scratch. Online marketing is advantageous in existing companies that are already established and have a good reputation hence customer confidence (Anderson1996).

In such cases, the company retains contact with the physical enterprise and work out to leverage other tasks. Dell has core competencies against other companies that provide computer products and accessories. By the use of online marketing, the company is able to explore these competencies more expansively and intensively (Tampa et al 2000). Since Dell is already an established company, it's able to use the trust it has established with its suppliers and hence leverage the supplier networks already in place.

For these reasons, there will be easy delivery of products to the clients and assured supply (Brown 2001). All these smooth operations come with advantages; discounts and other favored handling.Existing distribution channels allows for trouble-free delivery of services and products, price discounts to the company. These will have the advantage of cutting down the cost of distribution and therefore these benefits will trickle down to the customers in terms of reduced costs. Dell Inc has a well-recognized brand name in the computer industry.

For this reason, leveraging brand equity is of great advantage over other companies that use dot com marketing strategies, Anderson (1996).Having been in operation for quite some time, Dell Inc is a stable company that can operate online especially for financial services as many people already trust them. This also implies the company has an already established customer foundation and sales and this brings in the benefits of economies of scale in marketing, making purchases, production (Fingar et al 2000).

Established companies operating online will get a chance to leverage a lower cost of capital, as bond issues will be availed to established companies (Tampa et al 2000). The underwriting cost creating a new cop-any from the beginning as an initial public offer is very costly than the online equity offering in marketing. Every company has a set of advantages over others (competitors) and good operation practices (Fingar et al 2000). This gives established firms an advantage in online operations.