Dell

12 Pages 2986 Words

companies) Dell has characterised its relationship with the market segments above under one broad heading that is The Dell Direct Model. The Dell Direct Model This model Low cost high Build to order manufacturing involves several factors namely: Direct relationship with customersspeed distribution and procurement system These three factors are essentially the backbone of Dells operations and the means through which the organisation is able to differentiate itself from competitors, therefore sustaining a significant competitive advantage. Dell is the entire distribution channel from the procurement to the delivery of the finished product/service to the consumer. By eliminating the middleman in the supply chain Dell is able to exert greater control over cost and quality in the product and the efficiency of the lead-time. The organisation realises that each of its market segments has different characteristics – different support costs, margins, levels of investment and capital growth. Dells Direct model has b...