Business

Business

[Name of the Writer]

[Name of the Institution]

Business

Introduction

Dell is one of the most popular computer selling company which is an American privately owned company. They manufacture, sell and repair computers and other related products. Dell is having a very good reputation in the market due to its innovative ideas. They are having a different way of selling products as compared to the other competitors in the market. In this essay, we are discussing a video in which Dell and its direct sale model are discussed. There will be a discussion about different aspects of how Dell is different from other companies in the computer market and how their competitors are applying different strategies to compete with them.

Q1

Dell is one of the most popular computers selling company in the world that sales its products directly to its customers according to their requirements. There is no middle man involved in the sales strategy of Dell as shown in the video that they create mostly on demand and customized computers for their customers. People tell them their requirements for what purpose they need a computer and what specifications they need in a certain system. They can order online on Dell's website or they can also order by making a phone call as shown in the video. This video looks very older because today there are many competitors of Dell in the market who are currently working on the same strategy of Dell (MacNeil, 1999).

It is shown in the video that when someone orders the customer product via telephone or online on Dell’s website, after receiving the order Dell starts manufacturing the computer according to the specifications which are told by the customer (MacNeil, 1999). After manufacturing the computer, they perform a test to make sure that each function is working properly or not. When everything is done, Dell tries to ship the computer to the customer as soon as possible as shown in the video. This is one of the reasons why Dell is successful because they have proper management and they value their customers. Dell always sends the products to its customers on time or before time to make sure that the customer receives their order before the given time. They only built orders on demand as compared to their other competitors like Apple, IBM, HP, etc. Other companies are also using other services to sell their products to customers.

Q2

The emerging supply chain and logistics management factors which are represented in the video has negatively affected large computer chain stores. It has affected them negatively because of the rapid usage of internet. People prefer to buy products from the internet through different websites rather than wasting time on finding the product of their requirement in the market or in a retail shop (MacNeil, 1999). However, there are still many people who prefer to buy laptops or computers from the market rather than purchasing online. The Internet has made it easy for customers to purchase computers anytime from anywhere at home. A customer can also view reviews about the product before purchasing it and can find a variety of products with the help of internet. They can also compare different products and can select which is better from them with the help of reviews from different people.

However, it has negatively affected the market because there are still many stores which are not competitive enough to compete against online stores. The main reason they are not competitive enough is that they have limited stock of the products which makes difficult for the customer sometimes to find the product according to their requirement. It has been observed that many chain stores have set high prices of computers and laptops which has also negatively affected them. However, they have to set high prices due to the different costs they have to manage from the profit they gain (MacNeil, 1999). Still, they offer discounts on various products which online stores don't offer. As compared to the online store's retail stores also allow the customers to view the product before purchasing it live. However, still, people prefer to purchase computers online.

Q4

It has been shown in the video that in the start Dell focused more on selling the computers in the market in a better way. They changed their way of manufacturing machines which were sold to the customers to provide them better quality and service as compared to their other competitors in the market. Their other competitors like Apple, IBM, HP, etc., manufactured the machines and then shipped to the market to different retail shops for the sale. However, this was not a suitable strategy for other market competitors because due to the excess supply of the computer in the market people demands fewer prices and retail shopkeepers can't offer discounts. Market research is the option for such companies to help themselves from falling. Market research allows companies to find the products more effectively by researching different aspects of their business (Pyle, 2010). It's been a huge challenge for the companies to compete with each other in the market without market research. There are several factors which are involved in the supply chain department. It is important for businesses to research these factors before selling the products in the market.

Conclusion

There are several factors which are discussed in the video about how Dell is different from other companies in the market. Dell has a different way of selling products because they value their customers and always try to provide them valuable services. Other companies should also learn from the management of Dell and should apply the same strategies to compete with them in the market.

References

MacNeil/Lehrer Productions (Producer). (1999). Your computer, your way: Dell and the direct sales model [Video file]. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://fod.infobase.com/PortalPlaylists.aspx?wID=273866&xtid=10070

Pyle, L. (2010). How to Do Market Research--The Basics. Entrepreneur. Retrieved from https://www.entrepreneur.com/article/217345