Dell

23 Pages 5736 Words

r resellers. To Dell, the Internet is the purest and most efficient form of the direct model, providing greater convenience and efficiency to customers and, in turn, to Dell. As the No. 2 worldwide in market share, this Texas-base company employs approximately 40,000 employees.
For many years, Dell had been the number two global computer manufacturer in terms of both sales and market penetration behind Compaq. The king of the computer systems, Compaq had managed to build up a strong and loyal base of distributors globally who resold the systems to the end-consumers, while Dell had always sold direct. Catalog sales had also long been the backbone of Dell’s sales and distribution channel, meaning that they had a difficult time reaching the mainstream computer buyer who normally just took a trip to their local computer superstore when the need arose. With the commercialization of the Internet though, Dell saw the opportunity further expand its sales and distribution channels into this new and vast market, which was largely untapped. The resul...