Dell has responded e-businesses of e-business in several ways, and the response has enabled it to achieve much in return in fostering its growth and development.
The first response that dell has responded to is the effective use of internet as an e-business platform. The Internet has provided Dell with means for extending the reach and scope of its direct sales business model at a fairly low marginal cost. It has done so in part by automating roles such as product outline, order entry, and technical support, enabling the company to grow revenues without a similar increase in customer service costs. Besides, it has used the Internet to coordinate a network of suppliers and business partners who carry out many of the processes involved in building, delivering and supporting personal computers.
Second, Dell’s use of the Internet and electronic commerce explains the strategic and organizational challenges that face any company that is serious about embracing the Internet and trying to tap its potential. It has also provided insights into a new form of business organization that may become more prevalent in the networked economy.
The e-business further has enabled dell to embrace build-to-order manufacturing processes and set them effectively, this makes it easy to offer customers the opportunity to configure products online just as they already did on the telephone.
Also, Dell also used the Internet to link itself more tightly to its large customers by developing extranets called Premier Pages. More than 50,000 Premier Pages have been developed by Dell for its thousands of business customers by the year 2000. The premier pages have been used for outline, ordering, services, and support, all customized to the customer’s systems and needs in an e-business environment. Therefore the premier pages has enabled smaller companies and consumers to PCs, peripherals, software and other items online from Dell.com, and receive technical support and other services at the Dell web site as well embracing e-business.
Equally important , Dell’s has used more effort to ensure that the Internet has played an important role in its e-business activities by coordinating its entire value network, including suppliers, logistics providers, distributors of third-party products, system integrators, and service providers. All of these activities were driven by the tight information linkages between Dell and its potential customers.
Dell has saw an opportunity and therefore capitalized on its growing reputation as an e-commerce innovator and redefine itself as a knowledgeable provider of e-commerce infrastructure to its customers.
Dell’s response to e-commerce strategy has been inspired by Dell Ventures, which has invested $700 million in about 50 Internet companies (on July 2000), in areas including broadband and wireless communications, business-to-business and business-to-consumer e-commerce, ASPs, server and storage infrastructure, Internet content, and e-consulting. These investments gave Dell access to new technologies without expanding its own R&D activities.
Last, dell has applied the e-business to all aspects of customer relationships, from sales and marketing to order entry to technical support. It does so partly to support existing channels such as the direct sales force and call centers by providing them with better information and automating their routine tasks. It also has provided self-service tools to customers so they can order online, track order status, or solve a technical problem by means of the Internet or an extranet. These applications make Dell’s sales and call center staff more effective and productive and reduce staffing needed to support a growing customer base.
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