An example of an E-commerce success and its causes

Michael S. Dell founded PC's Limited with capital of $1000 on November 4, 1984. The company was formed when Michael S. Dell was still studying at University of Texas, Austin. PC's Limited beliefs that they could understand the customer's needs by selling products directly to them.

In year 1985, the company sold its the "Turbo PC" for US$795 — which contained an Intel 8088-compatible processor running at a speed of 8 MHz.

The company later change its name from " PC's Limited " to " Dell Computer Corporation " . Trace back to when the company started its business thru Internet, it all back to year 1996 which the company decided to engage in Internet business in selling its products to meet different customer's preferences.

The reasons which contributed to the successful of Dell in the areas of E-Commerce in selling its products are Dell sells their products directly to customers which you cannot find it in any other stores. They also provides services and maintenance of the product to the customers who encounter problems on the product purchased. This has helped to save precious time of the buyer to have their problems fixed. The more important is the buyer can save MONEY !

Another reasons is the Dell's Culture. Dell has created a highly disciplined culture that focuses on optimizing the operational model , responding to what customer wants and needs. Besides, they also provide door to door services to the buyer of their products. Dell respond quick to the commitment of the public and others. Example: if the information of the web outdated even just for minutes, they will fix it within a range rather than waiting for a overall rearrangement.

Dell also one of the low cost providers. Dell know that by being a low cost provider of their product can unlock the hidden business/market opportunities. That's why their product does comes with the balance between quality and money. Unlike Sony Vaio, the high cost of the product does not constitute to a better comparison in cost with Dell.

Despite Product development is focused by the company, the company can allocate resources to the project undergoing. Dell know what kind of R&D they wanted to differentiate their products, this has made the " Dell " can allocate their fund offensively and not defensively.

The customization tools of Dell's Website has made easier for customer to purchase the laptop or PC and any other products in just few clicks. WoW... it's never been easier for the customer !

The above are the reasons contributed to the success of DELL.

Related Links:

1.http://www.oppapers.com/essays/Dell-Key-Success-Factors/150188

2.http://en.wikipedia.org/wiki/Dell







Posted by Chee Liat Long