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DELL LEVERAGES THE INTERNET, DIRECTLY Jim, Pam, Keith Group D How has Dell selling directly given them a competitive advantage? Brings them closer to customer Customize computers Cut costs by cutting out retail stores Cause buyers to have high switching costs Creates entry barriers What Information Systems Does Dell Need To Sell Directly To The Consumer? Direct Approach Direct Customer Relationships Products and Services Ex: adapted IT systems, user interfacece Electronic Data Interchange Online site for customers to customize their computer What Other Programs Has Dell Created That Give It A Comptetitive Advantage? Offers build to order production Focuses on suppliers Offers deployment services to organizations Offers Maintenance to systems Will Dell Computers Be Cheaper than HP and Other Computers? Yes Less overhead costs Less storage costs How Can HP Successfully Compete With Dell? Make quality products at low price Allow more customers to see product What Info. Systems can HP set up to better compete with Dell? Retail Channel Strategy Allows customers to have hands on experience HP’s computers are selling in more stores than Dell(10 times more) Offers twice as many models than Dell Would Dell Have Been Successful If The Internet Had Not Been Invented? Yes Would take calls over phone for custom orders instead of online still allowing them to keep costs lower than having a retail store. Have more samples in stores, allowing customers to see the product in person * * Switching costs= makes it harder for a customer to leave company due to being comfortable with current company Entry Barriers= make it difficult and expensive for new competition to enter market EDI= refers to the structured transmission of data between organizations by electronic means. Build to order= minimize parts inventory by requiring suppliers to restock parts only as they are needed
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