1、DELL direct business model 1background1:Dell Computer was founded as PCs Limited in 1984 by university student Michael Dell. 2: By 1991, seven years after selling its first computer, Dell Computer Corporation was listed in the Fortune 500 3:With much experience in mail order telephone sales, Dell wa

2、s one of the first companies to offer computers for mail order via the Internet. The Dell Coupon program made many Internet models cheaper than other brands, and continues to be popular to this day. 4 In 1998, start to introduce the direct model into China, and quickly become Chinas largest internat

3、ional computer brand 2The main products3Direct Business Model1 zero inventory 2In-time production 3 Production orders4Direct Business Model Direct business modern dont have middle business ,so they can save a lot of sales cost . Found a professional sales group ,these members have more products know

4、ledge .they can make promise with client Direct contact with the Client ,DELL can directly get the information about the product service and competetion5ProcessSpare PartssuppliersdellAdvertising company Transportation companiesService companiesRepresentative OfficeClient67Advantage 1:Reduce the sto

5、rage costs and inventory management workers salary 2 Reducing inventory , more flow capital can used with investment in other ways or used for scientific research 3 To avoid a large backlog of outdated products caused as a result of the rapid changes in the technology market (the provision for the i

6、nventory8Impairment Of AssetDELLFOUNDER LENOVOR 599712.51301274.472335735.079Measure Only build a close relationship with a few and supplier and share important customer and every production information with them10DELL s suppliers strategy Suppliers often nearly by Dell factory, or they can not be t

7、he Dell supplier . By Dell website DELL.COM, suppliers and Dell virtual synchronization Suppliers can get the profit total 3% - 5%from DELL 11 Quickly satisfied the demand of customers : In order to avoid customer waiting and delivery time delay, Dell has established a powerful order processing and

8、customer service system. 12 Ensure production running smoothly, the implementation of comprehensive quality management: Routine maintenance of production lines, training of skilled workers operating machinery and equipment13 Also ,the progress in product also have some problem ,for example : 1 Shutd

9、own problem measures: make the good relationship with the suppler and ensure the quality of supply14 2 Discount and prices problem Measures :as close as possible to contact with the few of supplier . Make the long-term contracts to help reduce the cost of ordering .15Direct business cost First ,dire

10、ct business modern spent most advertising overhead. because it has less opportunity to communicate with customer and most sales net sit ,so direct business must increase propagate on the other aspect ,although DELL dont have the middle business ,they can save more sales cost ,but, in fact company fi

11、rstly must have a huge and complex global information system (including free fax and call ).for example , everyday DELL must deal with 50,000 call from customer ,at the same time they must build a excellent sales and serviced group , 16 Next compare with normal PC factory ,they need more strong plan and trainning investment and management ability ,and this is amount of cost 17Zero inv