The Dell Direct Model - Essay Example

1. What has made Dell successful to Through their innovative methods, Dell has introduced pioneering technology, which has contributed to the current success of the company, surfacing them to the top. Through different strategies like ‘The Dell Direct Model’, the company has been able to improve upon their relationship with the customers and thereby enhancing customer satisfaction and boosting up sales. This model focuses on direct relationships with the customer and enhancing sales through customer care and by cutting down the suppliers from 200 in 1992 to about 25 in 2000 (Bell & Rangan, 2002, p.5)., thereby improving efficiency at both the buying and selling ends.

Instead of limiting itself to the traditional methods of marketing and selling products, Dell took the initiative to set up an online system where the specialized staff could provide technical support and the customers can place an online order. Through this ‘Premier Pages’ initiative, customers were not only able to file online orders but also provide their own desired specifications and maintain a record of the transaction which they can access any time. The orders were processed and completed within a time frame of three days (Bell & Rangan, 2002, p.5). This not only helped the customers but also resulted in a faster processing at the administrative end.

Moreover, the managers could look at the general issues and queries of the customer in addition to monitoring information on important orders. The efficient use of technology combined with the diligence of the staff boosted the sales productivity rate by 50% (Bell & Rangan, 2002, p.5). Through its ‘Dell Direct Model’, Dell has expanded its market in three different regions namely Europe, Africa and Middle East. Dell takes in account the market needs of these regions and takes it as a stimulus to alter their strategies if needed.

This expansion has been carefully planned and not rapid, which is the reason why Dell emerged as a corporate giant in their field during the year 2000. 2. What is Dell’s position in the industry as of 2002? Even though there was a decline in the overall computer market, Dell remained positive and managed to generate 32billion in sales. As of 2002, Dell had a considerable lead with respect to its customers and the predictions indicated that this trend would be on the rise for the years to come.

Due to its various programs including the ‘Premier Pages’ and ‘The Dell Direct Model’, it would be able to withstand the economic pressures despite heavy swaying the computer market and raise its revenues by $3 to $5 billion by 2002. 3. An August 12, 2002 Business Week article, indicated that by 2007 Dell intended to double revenues to $60 billion. How should Dell go about building the nearly $6 billion annual sales growth needed to achieve that target? Even though the target looks great, the current strategies can propel Dell towards it.

Moreover Dell should continue with its expansion program, engulfing more countries and turning them into potential markets. With fierce competition in the market, Dell needs to invest more in research to come up with products that can compete with the products like I-Pad and other tablets, meant primarily for portability and entertainment. The company therefore needs to improvise and develop products suited to the demands of the masses. References Bell, M & Rangan, K. (2002, October).Dell- New Horizon.

Boston, MA: Harvard Business School Publishing Retrieved November 7, 19, 2011 From the World Wide Web: http://www.hbsp.harvard.edu