Using any information in Case Study #9-1 regarding Dell Computer, discuss how to

Question

Using any information in Case Study #9-1 regarding Dell Computer, discuss how to improve the Performance of Dell's current distribution channel system after considering how to help target customers create their value-in-use during the consumption poriod. In 1983. 18-year-old Michael dell left college to work full-time for the company he founded as a freshman providing hard-drive upgrades to corporate customers. In a year's time, dell's venture had $6 million, in an annual sales. In 1985, Dell changed his strategy to begin offering built-to-order computers. That year the company generated $70 million sales. Five years later, revenues had climbed to $500 million, and by the end Of 2000. Dell's revenues had topped an astounding $25 billion, The meteoric rise of Dell Computers was largly due to innovations in supply chain and manufacturing. but also due to the implementaion of a novel distribution strategy. By carefully enalyzing and meking strategic changes in the personal computer value chain, and by setting on emerging market trends. Dell Inc. grew to dominate the PC market in less time than than it takes many companies to launch their first product.

Explanation / Answer

The secrets of DELL success in terms of revenue growth:

Dell has established (i) long term relationship with selected suppliers, (ii) ask suppliers to develop inventory hub at their end.

This just in time and low inventory strategy of DELL reduced the time taken and also bring in low cost as against the traditional one.

Factors which contributed to the increased sales of DELL are:

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