This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer segments. Additionally, an important side-benefit of the Internet-based direct sales model was that it generated a wealth of market data the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This move away from the traditional distribution model for PC sales played a large role in Dell’s formidable early growth. While most other PCs were sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in system configuration at a deeply discounted price, due to the cost-savings associated with cutting out the retail middleman. By 1997, Dell’s Internet sales had reached an average of $4 million per day. Well before use of the Internet went mainstream, Dell had begun integrating online order status updates and technical support into their customer-facing operations. No more middleman: Dell started out as a direct seller, first using a mail-order system, and then taking advantage of the Internet to develop an online sales platform. grew to dominate the PC market in less time than it takes many companies to launch their first product. By carefully analyzing and making strategic changes in the personal computer value chain, and by seizing on emerging market trends, Dell Inc. The meteoric rise of Dell Computers was largely due to innovations in supply chain and manufacturing, but also due to the implementation of a novel distribution strategy. Five years later, revenues had climbed to $500 million, and by the end of 2000, Dell’s revenues had topped an astounding $25 billion. That year, the company generated $70 million in sales. In 1985, Dell changed his strategy to begin offering built-to-order computers. In a year’s time, Dell’s venture had $6 million in annual sales. In 1983, 18-year-old Michael Dell left college to work full-time for the company he founded as a freshman, providing hard-drive upgrades to corporate customers.
Use sales data and customer feedback to get ahead of the curve.Re-examine & improve efficiency for process/operations.Forgoing the retail route can increase customer value.Cutting out the middleman can work very well.Lessons from Dell’s distribution and supply chain innovation:
0 kommentar(er)
