Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 27.08.2003
Length: 31 pages
Data source: Published sources
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https://casecent.re/p/11614
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Abstract
Since its incorporation, Dell has developed a business model, Direct Model, that builds direct relationship with its customers. Over the years, Dell has become one of the leaders in the global PC market and is expanding into other markets like printers and personal digital assistants. The Direct Model helps Dell build a number of competitive advantages such as customer focus and segmentation, brand management in commodity distribution, build-to-order manufacturing, supplier management, and quick cash conversion. The case reveals that it was actually the knowledge creation and information flow among its employees, customers and suppliers - enabled by the Direct Model - that helped Dell build the business capabilities required to respond to environmental changes. The case also raises the question of how Dell can employ and improve its capabilities of managing and using information and knowledge to achieve its aggressive goal of doubling its fiscal year 2002 annual revenue of $31 billion within five years.
About
Abstract
Since its incorporation, Dell has developed a business model, Direct Model, that builds direct relationship with its customers. Over the years, Dell has become one of the leaders in the global PC market and is expanding into other markets like printers and personal digital assistants. The Direct Model helps Dell build a number of competitive advantages such as customer focus and segmentation, brand management in commodity distribution, build-to-order manufacturing, supplier management, and quick cash conversion. The case reveals that it was actually the knowledge creation and information flow among its employees, customers and suppliers - enabled by the Direct Model - that helped Dell build the business capabilities required to respond to environmental changes. The case also raises the question of how Dell can employ and improve its capabilities of managing and using information and knowledge to achieve its aggressive goal of doubling its fiscal year 2002 annual revenue of $31 billion within five years.