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DELL LEVERAGES
THE INTERNET,
DIRECTLY
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QuickTime™ and a
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Jim, Pam, Keith
Group D
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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