Dell Company Profile:
Company Profile
Dell, headquartered in Austin, Texas, is a global leader in IT products and services Provider whose business includes helping customers build their own information technology and Internet infrastructure. The fundamental reason why Dell has become a market leader is its continuous commitment to providing the best customer experience by providing products and services that comply with industry-standard technology directly to customers. Dell currently has 46,000 employees worldwide, and in the past four fiscal quarters, Dell's total revenue reached US$41.4 billion.
Dell was founded in 1984 by Michael Dell. He is currently the longest-serving CEO in the computer industry. His philosophy is simple: Build computers according to customer specifications and ship them directly to customers, allowing Dell to understand customer needs most effectively and clearly, and then respond quickly. This direct business model eliminates middlemen, which reduces unnecessary costs and time and allows Dell to better understand customer needs. This direct model allows Dell to customize and provide powerful systems with rich configurations for each consumer at a competitive price point. By updating inventory every four days on average, Dell is able to bring the latest relevant technologies to consumers much faster than companies with slower, more reseller models.
Leverage the advantages of the Internet
Dell uses the Internet to further promote its direct ordering model and continuously enhance and expand its competitive advantages. Dell launched the www.dell.com website in 1994 and added e-commerce functions in 1996 to promote business development toward the Internet. The following year, Dell became the first company to reach $1 million in online sales. Today, Dell operates the world's largest Internet business website based on the Microsoft Windows operating system. The www.dell.com website operated by Dell PowerEdge servers covers sites in 86 countries, provides quotes in 28 languages ??or dialects, and 29 different currencies. It currently has more than 1 billion views per quarter.
Dell increasingly recognizes the important role of the Internet throughout its entire business, including access to information, customer support and customer relationship management. On the www.dell.com website, users can evaluate, configure and obtain corresponding quotations for Dell's full range of products. Users can also order online and monitor the product manufacturing and delivery process at any time. At valuechain.dell.com, Dell and its suppliers share a comprehensive set of information, including product quality and inventory lists. Dell uses the Internet to bring its industry-leading services to its customers. For example, hundreds of thousands of business and institutional customers around the world conduct business with Dell through Dell's advanced website Dell.com.
Capital liquidity, profit margin, and growth
Through continuous and arduous efforts, Dell has maintained a balance between growth, profit margin, and capital liquidity, bringing benefits to shareholders. High returns. Dell has been ahead of its biggest rivals in these areas.
Cities and regions where the linear ordering model is implemented
Dell introduced the linear ordering model to China in August 1998.
Dell (China) Company (hereinafter referred to as Dell) has offices in Beijing, Shanghai, Guangzhou, Chengdu, Nanjing, Hangzhou and Shenzhen, and has the ability to expand sales and markets to many major cities ( Such as Shenyang, Suzhou, Wuhan and Xi'an), as well as more than 100 second-tier cities and urban areas.
Customer-oriented market strategy
Dell is committed to providing excellent customer service and has a professional sales and technical support team to provide services to customers in different fields: Enterprise customers: Large and medium-sized companies
Global customers
Governments and related agencies
Households and small businesses
Target markets: Telecommunications industry
Banking/Taxation/Financial Industry
Government
Multinational Corporations
Education/Research Institutions
Market Positioning
As one of Dell's key strategic markets, the Chinese market performed outstandingly in the first fiscal quarter ended April 30, 2004, with product shipments increasing by 48%.
According to IDC's PC market research report for the fourth quarter of 2003, Dell's PC shipments in China ranked third in the Chinese PC market with an overall share of 7.3, and Dell's server shipments in the Chinese market ranked third. Ranked first with a market share of 24.1, further demonstrating China’s strategic position in Dell’s Asia-Pacific and even global business.
Infrastructure and Operational Status
China Customer Center (CCC)
China Customer Center (CCC) was started in August 1998 in a rented factory building operation and moved into the current permanent factory building in November 2000.
The new China Customer Center, located near the Xiamen Airport in Fujian Province, occupies a total area of ??350,000 square feet. The daily server output is twice that of the original customer service center. The daily output of notebooks and desktops is The output is three times that of the original customer service center.
Obtained ISO9001 (2000 version) and ISO14001 certification in March 2001. In September 2002, it became Dell's first factory in the world to obtain OHSAS18001 occupational safety and health management certification.
Provide Chinese users with comprehensive sales and production facilities, including a full range of services and technical support.
It currently has more than 2,000 employees.
China Design Center (CDC)
In July 2000, Dell started computer-related design work with the purpose of promoting the development of new system platforms, peripherals, software and service products. , to meet specific customer needs and market requirements.
In July 2002, Dell China Design Center (CDC) settled in Shanghai to support the company's world-leading customer-centered technology and strengthen Dell's desktop product design and development work.
Dell International Service (China) Center (DIS China)
In October 2002, Dell announced the opening of the Dell International Service (China) Center in Dalian, China, to support the backend in the Japanese market. operations and improve the effectiveness of customer service, thereby effectively promoting the rapid growth of Dell's business in the Japanese market. The center was put into operation at the end of 2002.
The Dell International Service (China) Center is mainly responsible for the important internal operational tasks of Dell (Japan), including account settlement, information system-related work, and various sales and customer service support work.
Global Procurement Points (WWPO)
International procurement outlets have been established in Hong Kong, Shanghai, Shenzhen and Taiwan to strengthen partnerships with suppliers in China and improve Dell’s global presence. Procurement efficiency.
Dell purchases a large number of components in China, including accessories, optical drives, printed circuit boards, floppy drives, monitors, speakers, keyboards, mice and input and output devices. Purchase volume in 2003 was approximately US$8 billion.
Market coverage
Chinese customers can directly contact every Dell sales representative according to their configuration and software requirements through 720 toll-free numbers set up in 258 cities across the country. To order personal computers, laptops or server products, you can also purchase them directly through the Internet at Dell's www.dell.com.cn website.
The on-site service and technical support provided by Dell can directly cover 1,923 cities.
Product Categories
Dimension PCs for the home or small business
Inspiron laptops for the home or small business
OptiPlex Enterprise Class desktops
Latitude enterprise laptops
PowerEdge servers
PowerVault and Dell I EMC storage solutions
Precision workstations
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PowerConnect switches
Axim handheld computers
Dell brand projectors
Internet leadership
Dell's direct line The ordering model has been extended to the Internet, making it easy and safe to purchase products and obtain services online.
The fully Chinese www.dell.com.cn facilitates Chinese users to use their native language to determine configurations, obtain quotations and order products. Dell's Chinese website plan has also been extended to Dell's "user homepage" to facilitate corporate and institutional users to purchase Dell products on the Internet.
Dell is the world's leading provider of computer systems manufacturing and related services, committed to building information technology and Internet infrastructure for customers. Founded in 1984, the company's sales have grown from US$6 million to US$35.4 billion in the past four quarters, ranking 48th among the Fortune 500 companies in the United States and 122nd among the Fortune 500 global companies. .
Dell's Philosophy: Direct to the Customer
Dell has quickly become a market leader because we consistently sell computing products and services based on industry standards directly. Focused on providing the best customer experience.
The direct business model eliminates the time and cost of middlemen, shortening the time and distance between Dell and customers. At the same time, based on the direct business model, Dell took the lead in the industry to launch relevant customer service and support plans, which were well received by customers.
Harnessing the Power of the Internet
Dell's performance also benefits from our use of Internet technology to improve operational efficiency and strengthen and expand the competitiveness of the direct model. Dell founded the www.dell.com website in 1994 and added e-commerce functionality in 1996. A year later, it became the first company in the world with online sales exceeding US$1 million.
Dell also extends the efficiency of the Internet to the entire business process including procurement, customer support and customer relationship management. Today, Dell's business website sales rank first in the world.
Bringing the benefits of the direct model to Chinese customers
Since the direct business model was introduced to China in 1998, Dell currently operates in Beijing, Shanghai, Guangzhou, Chengdu, Nanjing, Hangzhou and Offices and business agencies have been established in major cities such as Shenzhen. In addition, customers can directly contact Dell's sales representatives through 530 toll-free numbers set up in 258 cities across the country, or purchase products directly through the Internet on Dell's www.dell.com.cn website. The on-site service and technical support provided by Dell can directly cover 1,580 cities.
Dell established the China Customer Center (CCC) in Xiamen in August 1998. The new factory obtained ISO9001 (2000 version) and ISO14001 certification in March 2001. In September 2002, it became Dell's first factory in the world to obtain OHSAS18001 occupational safety and health management certification. CCC integrates the sales, manufacturing and technical support functions needed to serve customers in China. In addition, the China Design Center (CDC) in Shanghai, the Dell International Service (China) Center (DIS China) in Dalian, and international procurement outlets in Hong Kong, Shanghai, Shenzhen and Taiwan will further expand Dell's future. Our business in China has laid a good foundation.
Dell Computer's "diversified" model reveals that the company's growth has accelerated again
Introduction: According to an article published in the latest issue of "Business 2.0", the "direct sales model" will create personal computer sales The mythical Dell Computer Company has shocked the industry again recently. Foreseeing that the personal computer industry has become increasingly saturated, Dell has begun to create a bolder and more expansionary "diversified model" to enter almost all markets. Hardware product field. Can Dell's new model succeed again? Many people are waiting for answers.
Michael Dell is a myth in the personal computer industry. The "direct sales model" he advocated not only completely changed the pattern of an industry, but also created a large-scale enterprise. , Now, the "market-oriented" marketing concept advocated by Dell has been widely recognized by the industry, and its business model has been cited as a classic by many companies. Dell now looks more like an efficient assembly plant: chips from Intel and peripherals from South Korea and Taiwan can be seen everywhere. Workers can assemble a brand-new computer in three to five minutes. These computers pass through in an orderly manner. The delivery provider delivers directly to the end user. Its efficiency is astonishing and dwarfs all its peers in the industry!
Despite this, Dell Computer Company still encountered a problem that mature companies cannot avoid: How to make the company get better, take a step forward, and continue to maintain high-efficiency, high-effectiveness and rapid growth? Obviously, the existing business model has been stretched to its extreme and can no longer become a source of growth for Dell. The only way out is to expand into other industries. It was precisely in anticipation of this that Dell took the lead and embarked on a "diversified" development path despite the general wait-and-see situation in the industry. This is also another major development strategy launched by Dell Computer Company after the "direct sales model" - the "diversified model". However, will Dell's new endeavor be successful?
When launching the concept of "diversified model", Dell CEO Michael Dell vividly compared Dell to the "Wal-Mart" of the computer hardware industry. The implication is that Dell wants to The development of hardware supermarket has turned the company into an all-encompassing hardware kingdom, not just in the field of personal computers. In order to achieve this goal, Dell began to systematically penetrate into other hardware industries: network switching equipment, printers, digital products, money counting machines, etc., almost all computer-related hardware products you can think of. Became the expansion target of Dell. A realistic and serious problem is that Dell's existing success does not guarantee its continued success in these new areas. Maybe in some related product fields, Dell's model has certain advantages, but in large areas In some of the newly entered fields, Dell is completely a "newcomer", which will undoubtedly bring serious resistance to Dell's expansion. Although shareholders have great expectations for Dell's development prospects, even Dell himself is not sure whether these new areas can bring substantial returns to shareholders as expected.
As Dell's expansion pace accelerates, the company's competitors are also increasing. The current situation is no longer which companies want to compete with Dell, but Dell wants to compete with every company. In this regard, old rivals such as IBM and Hewlett-Packard have invariably issued warnings to Dell. They all believe that the result of such blind expansion will not only cause Dell to lose its existing competitive advantages, but also lead to the hollowing out of the industry, making Dell Become a company with no main business and no core competition. However, Dell dismissed such criticism. Dell said, "The most important thing for a company is to meet the needs of customers. We have the simplest and most effective model. No matter what industry you operate, these basic principles are the same." "
Dell is currently actively promoting several key areas, including commercial computers, storage systems, network switching products and services:
1. Commercial computers. Field: The potential market opportunity in this field is US$50 billion. Dell's main competitors are IBM, HP, and SUN.
The commercial computer field is Dell's current main expansion area. This huge market has been dominated by a few companies such as IBM, HP, and SUN. Before the mid-1990s, Dell had never considered entering this market. But now, Dell has begun to enter the server market from low to high. Its low-end server market share has surpassed the industry leader Compaq in just three years, ranking first with a share of 31. Its main secret It is to closely follow industry standards, ignore product differences between manufacturers as much as possible, and make Dell's products become universal computing products.
2. Storage system field: The potential market opportunity in this field is US$22 billion. Dell's main competitors are EMC, Hitachi and HP. Products in this field are more versatile and are one of Dell's main areas of focus. However, Dell has less experience in this field, which caused the company to encounter some setbacks when expanding into this field. Fortunately, Dell made timely adjustments. Strategy, active alliance with the industry leader EMC, and promoting EMC's product standards, Dell quickly reversed the unfavorable situation and gained recognition and support from customers.
3. Network switching product field: The potential market opportunity in this field is US$13 billion. Dell's main competitors are Cisco Systems, Enterasys, Nortel Networks and 3Com. In the network switching market, Dell's main focus is routers and switches. Since the products in this field have poor versatility and high technological content, Dell's efforts are mainly focused on the low-end market. Currently, Dell has become more cautious in this area.
4. Service field: The potential market opportunity in this field is US$350 billion. Dell's competitors include Accenture, HP, IBM and many other companies. The transformation from "model" to "service" is probably the biggest challenge facing Dell. Dell has always dominated the world with products, so it is somewhat lacking in confidence to enter the service field. However, the market is really too big and the prospects are attractive. It cannot help but be exciting. Perhaps with a period of hard work, Dell can gain a foothold in this field. In any case, the experience of the past 20 years has proven that Dell is trustworthy. Even if it does not achieve the expected success in a short period of time, Dell will gradually become the last survivor in the great waves. (Wang Yuzhong)
"Do as the Romans do" Dell Computer abandons zero inventory
When shopping in computer stores in China, it is common to see Dell products placed alongside computers of other brands. It's quite puzzling: Dell doesn't sell directly, so why does it come here to sell goods?
Dell "claims" to bring advanced sales methods such as direct sales, on-demand customization, and zero inventory to China, but in actual operations, it "creatively" adopts the same methods as other domestic IT manufacturers. Channel distribution method, this is already a semi-open secret in the IT industry. In fact, more than 40% of Dell's products reach consumers through distribution - of course, Dell, which is known for its unique sales model, has never officially admitted this.
The premise of zero inventory is the "factory-subscriber" model of customization on demand. Order one and produce one, produce one and sell one. Otherwise, if there is a fixed model for mass production, there will be inventory. Observing Dell's advertising in China, it is still focusing on a few products rather than emphasizing on-demand customization. It just has a few more sales hotlines than other manufacturers. Want some personalization? Of course, you can ask Dell to add a memory or a hard drive for you. However, if this can be called customization, domestic IT manufacturers have been "customizing" it since the day they sold computers. Of course, there is still true on-demand customization, but it is mainly for large customers such as government enterprises.
National conditions that do not support zero inventory
Why doesn’t Dell use its global sales method in China? This has something to do with China’s logistics chain. The efficiency of China's logistics is difficult to support Dell's commitment in the United States to deliver products from factories to users within three days - especially users in non-central cities.
Moreover, the average Chinese user probably does not want to bear the extra cost of hundreds of yuan just to enjoy a door-to-door service.
More importantly, distribution is also related to the purchasing habits of Chinese people. Chinese consumers like to go to stores to shop around when buying goods, because there are more choices in stores and they can see genuine products before buying. For big-ticket items such as computers, you have to try them out a few times before you can make a solid purchase. Like Americans, who make a phone call and buy a product without seeing the real thing, it is still difficult for ordinary Chinese consumers to accept it. Ultimately, this is because China's per capita income is still at a low level for the time being: it is common for Americans to buy a computer, and it is not a big deal; but it is different for us. For most ordinary families in China, buying a computer is not a big deal. It is often a big event that brings together the entire family.
National conditions determine purchasing habits, and purchasing habits determine sales methods - Dell knows this well. In China, it simply adopts a combination of distribution and direct sales as long as it can sell products. After all, the quality, brand, and service of the products are still first-class, which is enough to make it a strong market competitor. Distribution is Dell's behavior to adapt to the market.
Haier "tested the waters" and learned a lot.
But perhaps the temptation of zero inventory is too great, Dell's example is too powerful, and Haier and other domestic companies have also come to "test the waters" Direct sales and zero inventory.
This is quite funny. Foreign monks have begun to recite Chinese scriptures, but Chinese monks still want to learn foreign scriptures. The result is often the same thing: Haier claimed to have achieved "zero inventory", but it attracted a lot of doubts; the "customization on demand" of Haier's production lines is produced according to the "needs" of local branches rather than the "needs" of consumers. , As a result, the headquarters did achieve zero inventory, but there were huge disguised inventories in each branch. So direct selling became a "physical sport" with dispersed warehouses. This kind of pseudo-zero inventory only gives enterprises a false reputation for excellent management, and they may still spend large sums of money to establish a direct sales system corresponding to zero inventory.
Chinese companies want to learn from Dell's good example, but no one wants to learn from Dell's real strengths in cost control and cost savings. China does not have zero inventory, and there is no need to force zero inventory. This may be a bit absolute, because the Chinese have already "realized" on-demand customization and zero inventory, which is the small storefront of Zhongguancun's compatible machines.
Dell - The Lone Innovator
Michael Dell invented a business model that the whole world wanted to imitate. However, many years later, almost no one succeeded in imitating it. example.
He himself has many answers to the reasons for Dell's success. There are many publications on how to learn Dell's great business model, how to achieve direct sales, and how to achieve PC pre-orders. Dell's effective supply chain will be mentioned almost every time in meetings discussing e-commerce, and Dell will be envious of its minimal inventory backlog. Traditional manufacturing giants such as Meta and General Motors frequently go to Austin and Texas to learn from Dell the "Bible" for companies to adapt to the new situation. Michael Dell is another manager after General Electric's Welch who uniquely turned the PC business into a source of profit.
Now, when the most difficult moment comes, Dell's most famous "zero inventory" model is about to withstand the most severe test. However, Dell's performance so far is still very good: On April 5, Dell announced that it would not lower its profit expectations for the latest quarter like its peers. What about companies that once followed Dell's model? Are they all fine? This is a difficult question to answer because most of it has disappeared.
Dell has been in the PC business for nearly two decades, and it is still in a one-man class. Others may be able to more or less emulate Dell's business model, but none will do it as well as it does. Dell's clone, Gateway, is now just breathing space due to neglect of inventory and separation from its own brand operations. Dell's biggest competitor, Compaq, still sells most of its products through indirect distribution channels. In recent quarters, Cisco has only proved how different it is from Dell. When its inventory backlog accounts for 40% of sales, Dell's is less than 6%, and this ratio is on a downward trend.
There are very few companies in the non-technology industry that can imitate Dell and truly inherit its legacy. Dell himself is not surprised by this. He said that few companies have the need to completely imitate Dell's business model. Even if it is necessary, many companies will consider whether it will have a negative impact on existing businesses, especially direct sales. channel.
In 1984, when Dell first started the PC business, there was no earth-shattering plan. It just hoped to sell computers in college dormitories.
With the advent of IBM's first computer, the microcomputer business is in the ascendant. With the emergence of a large number of suppliers, computer companies no longer need to conduct research and mass production in person. Instead, they can focus on assembly and on the market. Although Dell didn't understand this fact at the time, the emerging PC business had other, perhaps unique, perfections that Dell now calls improved direct selling.
When Dell summarizes the many features of microcomputers, we may be able to discover why no company can become the second Dell. In the beginning, microcomputers were assembled from standard parts from various sources, never special orders. The personalization consumers want is limited by limitations: processors that are too fast or too slow, memory that is too big or too small, colors and finishes that are not tailored to their personal preferences. These lack of innovative services have led to the creation of the make-to-order model, which no longer requires a lengthy supply chain. Moreover, expensive computer parts are updated very quickly, and time will reduce the value of the parts, so the inventory backlog is directly related to a computer. Producer's rate of return. This is what Dell calls "profit pools": if a company can reduce its parts inventory more efficiently than its competitors, it will generate greater revenue.
Can other industries also enjoy this feature? Dell didn't know this, but the tour with the automakers gave him some insight into who might be the next Dell. U.S. automakers bear at least $50 billion of the $80 billion in inventory management costs each year. Coming from advance orders, this meets the criteria for a high cost structure. However, problems arise when the automobile industry moves away from Dell's business scope, because automobile companies have large sales and fierce competition; almost every state in the United States makes it illegal to sell cars without the consent of local franchised dealers.
Perhaps it will be easier for a technology company as large as Cisco to implement the Dell model. Cisco's most expensive component products include custom processors, semiconductors and commissioned chips. This violated Dell's product standardization rules because Cisco required its suppliers to produce unique parts, which required pre-orders. If there are too many advance orders, there will be a backlog of parts and the price advantage will be lost; if there are too few, it will be difficult to quickly find another supplier to produce the required parts. In contrast, Dell can easily sell its unnecessary inventory even if it loses its most enjoyed market share in the process of capturing market share.
It is possible that more and more businesses will take advantage of the characteristics of microcomputer production, and if they eventually can, the course study of the past ten years will take them much longer than they guessed. When Dell's competitors prove they can't keep up, that might be good news for Dell as it gains market share, but it might be bad news for the consulting industry that thrives on analyzing the reasons for Dell's success. It should be understood that Dell is only an inspiration, and its uniqueness cannot become a standard model that the world hopes everyone can follow.
The "Three Golden Principles" of Dell Computer Company
Dell Computer Company was founded by Michael Dell in 1984. Dell is now the world's leading direct seller of computer systems and one of the industry's major manufacturers. In the past four fiscal quarters ending January 28, 2000, Dell's revenue reached US$27 billion, making it the world's second-largest and fastest-growing computer company, with 35,800 employees worldwide. In the United States, Dell is the No. 1 major supplier of personal computers to business users, government agencies, educational institutions and consumer markets.
At present, Dell uses the Internet to further promote its direct ordering model and once again leads the industry. Dell launched www. dell. com website. Today, Dell operates the world's largest Internet business website based on Microsoft's Windows NT operating system. The website's sales account for 40% to 50% of the company's total revenue. Dell PowerEdge servers run www. dell. .com includes sites in 80 countries and is currently visited by more than 40 million people each quarter. Customers can evaluate multiple configurations, get instant quotes, receive technical support, and order one or more systems. Dell has declared his "Three Golden Principles" more than once: "insist on direct sales", "abandon inventory", and "alliance with customers."
1. Insist on direct selling
Dell’s model is called direct selling, and is generally called the "Direct Business Model" in the United States. The so-called Dell direct sales method is that Dell establishes a set of channels to contact customers, and customers directly place orders to Dell. The required configurations can be listed in detail in the order, and then Dell "produces to order". What Dell calls the "direct sales model" is essentially to simplify and eliminate middlemen.
A. Market segmentation: Understand customers better than customers.
(1) Most companies mainly do product segmentation, while Dell also adds customer segmentation. As the understanding of each customer group deepens, the financial opportunities they represent can be more accurately measured, and the asset utilization of each operating project can be measured more effectively. By evaluating the return on investment of each market segment, and By comparing with other markets, future performance targets can be set so that the full potential of each business can be realized. Dell also has an in-depth understanding of customer requirements, which will facilitate the provision of better after-sales services in the future.
(2) The segmentation approach has solved Dell’s problems since its inception: how to maintain stable and sustained growth while gradually expanding. Research by Harvard Business Review shows that in 1994, Dell had only two types of customers: large customers and small customers including some business organizations and consumers. The company's assets that year were US$3.5 billion; by 1996 , the large customer market was segmented into three markets: large companies, medium-sized companies, government and educational institutions. In the same year, the company's assets rose to US$7.8 billion; and in 1997, Dell further subdivided large companies into global enterprises. There are two markets: customers and large companies. The government and educational institution markets are divided into three different markets: the federal government, state and local governments, and educational institutions. Small customers are further broken down into two businesses: small companies and general consumers. That year The company's assets have climbed to $12 billion.
It has always been a common problem for many large companies to lose touch with customers as they grow. It is indeed a miracle that Dell can gain a deeper understanding of the special needs of each customer group every time it segments its business.
B. Research customers, not competitors
Dell conducts in-depth research on customers, not competitors. Some people say that this direct sales model may be suitable for the United States, but it will not work in other countries. In Asia, the skepticism is even stronger. After Dell entered China, Dell heard the same argument again. Lenovo Group President Liu Chuanzhi believes: "Chinese consumers will buy only when they see real things." Although Liu Chuanzhi is very familiar with the Chinese computer market, many foreign companies insist on letting Chinese consumers adapt to their own business methods. And lead to failure. But what must be noted is that the core of Dell's business lies in enterprises, not individual consumers.
C. Online direct sales
Dell further promoted its direct sales model and established the company's online sales channels. In the United States, Dell's online sales now account for nearly half of total sales. In Asia, Dell Computer's goal is to increase sales to 50% by 2001. Dell not only plans to use the international Internet to sell products, but also wants to use it to integrate the entire supply chain from component suppliers to end users.
D. The cost of direct selling
First of all, direct selling invests a lot in advertising. Due to the lack of opportunities for face-to-face communication with customers and the lack of many sales outlets, direct selling manufacturers must increase their publicity efforts in other aspects. In addition, on the surface, direct selling bypasses the middlemen who share profits and saves considerable sales costs.