Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
Share a link:
https://casecent.re/p/19918
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Abstract
Dell Computers Limited in 20 years of its existence, became a pioneer in direct marketing. The company always focused on improving its supply chain by reducing costs through direct selling. Dell''s mission was focused on the concept of the direct-to-market strategy. The company''s direct model became a global benchmark in supply chain management, and many other organisations worldwide incorporated it in order to improve their supply chains. Gateway Incorporated also started its business as a direct seller of computer systems. However, by the year 2000, the focus of the company shifted from ''direct marketing'' to ''research and development''. The case gives an account of how both of these companies have evolved over time. The case also throws light on how Dell''s efficient and responsive supply chain enabled it to lead the market without spending too much on research and development and how weaknesses in Gateway''s supply chain made it lag behind, in spite of launching numerous new products in various categories.
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Abstract
Dell Computers Limited in 20 years of its existence, became a pioneer in direct marketing. The company always focused on improving its supply chain by reducing costs through direct selling. Dell''s mission was focused on the concept of the direct-to-market strategy. The company''s direct model became a global benchmark in supply chain management, and many other organisations worldwide incorporated it in order to improve their supply chains. Gateway Incorporated also started its business as a direct seller of computer systems. However, by the year 2000, the focus of the company shifted from ''direct marketing'' to ''research and development''. The case gives an account of how both of these companies have evolved over time. The case also throws light on how Dell''s efficient and responsive supply chain enabled it to lead the market without spending too much on research and development and how weaknesses in Gateway''s supply chain made it lag behind, in spite of launching numerous new products in various categories.