Dell Direct Selling Case Study

With the informatization progress of whole world, the development of IT industry fleets unceasingly, following by the fierce rivalry among enterprises. In the fierce market situation, Dell has grown rapidly and finally become the leader of PC. Someone attributes the success of Dell to direct selling, and some enterprises may imitate Dell's direct selling model. However they never succeed.This article primarily explores the direct selling strategy of Dell, finds out the reason that Dell can develop fast in the fierce competition circumstance. And how can Dell operate with customer at the core, consequently enhance the satisfaction degree of customer. The thesis also focuses on the exploration of the strategy that company adapts to changes within unceasingly changing environment on self's own initiative and adjusts company structure in time.Insist on the direct marketing pattern. Bypassing the time and cost of intermediate merchants and shortening the time and distance communicating directly between Dell and customer, direct marketing pattern makes Dell easily grasp the marketplace pulsation at the time of entrance to a new market; accordingly provide the accurate technology to the proper customer. Direct marketing pattern has become the mainstay of Dell, which promotes Dell grow up promptly. The Direct marketing pattern of Dell includes phone direct selling, personal direct selling, network direct selling and etc. Dell divides the customers into LCA, PAD, personal customer.Pursue zero stock. No one can be equal with the achievement that Dell gets in the stock pattern. Its average stock days all over the world has been reduced to less than 6 days, whereas typical computer merchant's stock time is two months. Since the fewer stock decreases operation capital, eliminates the large risk of price-reducing, and accelerates the new technique application. It makes Dell get the bigger profit margin. The reason that Dell has so large stock advantage comes from its strict request on suppliers and the close cooperation between them.Outstanding supply chain management. The excellent financial performance of Dell roots in the supernormal supply chain efficiency. In fact, the supply chain system of Dell has already breach through the traditional supply-demand cooperation between the manufacturer and supplier. Moreover in the business platform of Dell, customer has become the key of supply chain. When collaborating with supplier, Dell creates both sides the opportunity of prolonging working together based on the mutually beneficial principle, and also promises keeping long term relation and share all benefits coming from cost saving.Take customer as centre. The success of Dell today can't be detached from its idea which centers on customer. Dell focuses on demand rather product, pays attention to the customer response, and applies the unitary liaison person charging system.