Example of an E-Commerce success and its causes

Dell Corporation, a multinational technology corporation that develops, manufactures, sells, and supports personal computer and other computer-related products. Nowadays, Dell Corporation has employed more than 82700 people around the world. Besides, in year 2001, Dell Corporation has announced that it used the Internet to attract customers and sell $50 million of computers a day.


How does Internet makes Dell success? The Internet has provided Dell an opportunity to achieve a direct sales business model at a relatively low cost, this is the main key factor for Dell. Dell has improved its order entry, product configuration, technical support and reduce customers cost through Internet. Customers were given a chance to take them themselves involved into configuration process and select price as they prefer.

Dell’s supply chain runs as following illustration. After a customer makes an order, Dell processes the order within three days, after that sends the order to one of its manufacturing plants in Austin, Texas. These plants can build, test, and package the product around eight hours. Customers will receive the products within five days. This process has indicated that the inventory level is keeps at minimum level, thus cost has been reduced.

On the other hand, Dell has used Internet to build a network of suppliers and business partners. This online integration structure eliminates the need to manufacture everything, and uses the Internet to share and exchange information with suppliers and vendors to build a supply chain management that keeps inventory turnover low and minimum cost.

Dell uses its online sales, premier pages and online support to running its business successfully. These are the reasons that why nearly 80% of the online customers are prefer Dell.
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4 Responses
  1. Dell too deal with a good customer service, & I too feel easy when surfing Dell as it provided all details. No wonder Dell can survive & success!


  2. yea, dell have set up a nice corporate blog, and also have gained a seat in the top 10 corporate blog


  3. jenixce Says:

    Dell start up with e-commerce before they sell offline..it is quite convenient..


  4. You are right on Example of an E-Commerce success and its causes.As you stated that How does Internet makes Dell success? The Internet has provided Dell an opportunity to achieve a direct sales business model at a relatively low cost. Dell has improved its order entry, product configuration, technical support and reduce customers cost through Internet.I totally agree with you.


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