Friday, June 13, 2008

An Example of an E-Commerce Success and its Causes



Dell.com was founded in 1984 by Michael Dell, who is the longest-tenured executive to lead a company in the computer systems industry (Dell.com). One thing that separates Dell.com from other computer businesses is that it only offers its products online. The utilization of e-commerce is what has made Dell.com so successful. The company is based on a simple concept: selling computer systems directly to customers. This concept allows the people at Dell.com to understand the needs of its customers and build a computer that is most effective for its customers in the most efficient way possible. Its customers do not have to choose the one particular computer setup that is sold in a store; instead they are able to buy a computer that is best suited for them.


Dell.com sells more computer systems throughout the world than any other computer company. Over the last four quarters, Dell.com has totaled “$57.9 billion in revenues". Dell.com also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory in just five days on average”. For over twenty years, Dell.com has experienced great success inB2C e-commerce.


Dell.com has been a dominate force in computers for over twenty years. It is one of the oldest surviving B2C e-commerce companies. The company’s success is due in large part to the way that it reinvented the computer making process. Its automated e-commerce network has streamlined the production of computers. Dell.com’s system revolutionized computer production in much the same way that Ford’s system revolutionized automobile production. The company’s radio powered ID chips have made the company successful by simplifying everyday processes.

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