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DELL LEVERAGES THE INTERNET, DIRECTLY Jim, Pam, Keith Group D Jim, Pam, Keith Group D.

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Presentation on theme: "DELL LEVERAGES THE INTERNET, DIRECTLY Jim, Pam, Keith Group D Jim, Pam, Keith Group D."— Presentation transcript:

1 DELL LEVERAGES THE INTERNET, DIRECTLY Jim, Pam, Keith Group D Jim, Pam, Keith Group D

2 How has Dell selling directly given them a competitive advantage? FBrings them closer to customer FCustomize computers FCut costs by cutting out retail stores FCause buyers to have high switching costs FCreates entry barriers FBrings them closer to customer FCustomize computers FCut costs by cutting out retail stores FCause buyers to have high switching costs FCreates entry barriers

3 What Information Systems Does Dell Need To Sell Directly To The Consumer? FDirect Approach FDirect Customer Relationships FProducts and Services FEx: adapted IT systems, user interfacece FElectronic Data Interchange FOnline site for customers to customize their computer FDirect Approach FDirect Customer Relationships FProducts and Services FEx: adapted IT systems, user interfacece FElectronic Data Interchange FOnline site for customers to customize their computer

4 What Other Programs Has Dell Created That Give It A Comptetitive Advantage? FOffers build to order production FFocuses on suppliers FOffers deployment services to organizations FOffers Maintenance to systems FOffers build to order production FFocuses on suppliers FOffers deployment services to organizations FOffers Maintenance to systems

5 Will Dell Computers Be Cheaper than HP and Other Computers? FYes FLess overhead costs FLess storage costs FYes FLess overhead costs FLess storage costs

6 How Can HP Successfully Compete With Dell? FMake quality products at low price FAllow more customers to see product FMake quality products at low price FAllow more customers to see product

7 What Info. Systems can HP set up to better compete with Dell? FRetail Channel Strategy FAllows customers to have hands on experience FHP’s computers are selling in more stores than Dell(10 times more) FOffers twice as many models than Dell FRetail Channel Strategy FAllows customers to have hands on experience FHP’s computers are selling in more stores than Dell(10 times more) FOffers twice as many models than Dell

8 Would Dell Have Been Successful If The Internet Had Not Been Invented? FYes FWould take calls over phone for custom orders instead of online still allowing them to keep costs lower than having a retail store. FHave more samples in stores, allowing customers to see the product in person FYes FWould take calls over phone for custom orders instead of online still allowing them to keep costs lower than having a retail store. FHave more samples in stores, allowing customers to see the product in person


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