DELL Case Study Analysis (Marketing) - Essay Example

At times a key success factor can also be the key vulnerability of a company. In Dells case, it is their over dependency on short term just in time delivery system. All other success factors hinge on this. For example, the low cost, fast delivery, and customer service are all dependent upon the efficiency and smooth functioning of the JIT system. While JIT can be a excellent platform to build competitive advantage, it is dependent upon a host of other business partners involved within the supply chain.

Even If one or two suppliers are affected the whole operation of Dell is vulnerable. As only 4 days inventory is held, this risk is further heightened. Another vulnerability of Dell lies in its dependency on its unique business model of reaching customers directly while eliminating the middle links in its distribution chain. While most companies today look in to innovative distribution structures termed as Vertical Marketing Systems which integrate the activities of each link in the distribution chain (Armstrong & Kotler 2000), Dell had chosen to do away completely with the distribution chain.

Dell unlike other IT hardware and accessory manufacturers does not depend upon retailers and distributors in taking their product to the customers. With its innovative approach to distribution, the company allows the consumers to log on to the Dell Web site and place orders after they configure their PC’s as per their own specifications. While this unique business model cuts costs and allows for customer responsiveness and interactive marketing communications with the customers, it will be a less effective channel as Dell enters in to unsophisticated markets, which holds future growth potentials.

As Dells major US and European markets saturate, the company as other competitors in the industry needs to tap on to emerging markets such as China, India and other developing nations to support its growth. However these markets may still not be very sophisticated