1. Explain how selling direct has given Dell a competitive advantage.
Use the factors listed in Figure 3-11 in your answer.
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By selling direct, Dell is given a big
competitive advantage. All three
product implementations are being done
with Dell.
-Create a new product or service
-Enhance products or services
- Differentiate products or services. By
selling direct dell created a new service
by directly selling from manufacturers to
customers creating cheaper prices.
2. What information systems does Dell need to sell
directly to the consumer? Visit www.dell.com for
inspiration and details.
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1.
2.
3.
4.
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Dell uses the internet to its fullest to sell directly to
the consumer.
On the website there are three different sections to
help the consumer find what they are looking for.
They break it down
Which type of computer
How much storage
Type of operating system
Shipping rate
Without the internet this process would take much
longer. Not to mention much more expensive.
3. Besides selling direct, what other programs has Dell
created that give it a competitive advantage?
Dells custom computers are shipped
within 48 hours.
 They also offer low-interest financing
through Dell financing
 24 hour customer technical support for
all computers purchased.
 Bundle-pricing for schools such as the
computers we have in this class and
throughout the university.
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4. HP Vs. Dell
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This does not always mean Dell computers will
be cheaper than HP and other computers.
Make more by selling for less.
-Selling more machines than Dell, at a
lesser profit, will make up the overall
advantage Dell has over HP.
The advertised price for Dell computers are
usually for the low-end model, not containing
some major upgrades that most people prefer.
After adding the upgrades, the prices are not
always cheaper than comparable computers
made by other companies.
5. Assume that because of the need to sell through a channel,
HP’s computers will always be more expensive. How can HP
successfully compete with Dell?
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HP can successfully compete with Dell by building
good relationships with its customers and offering
better customer service and tech support than Dell.
If HP uses better technology and satisfies large
companies needs for high performance machines,
Dell cannot always compete.
-Dell uses lower quality parts for their products.
Regarding the customer service aspect, companies
have been able to provide better customer service
than, cancelling out their price advantage.
Over the lifetime of a computer, the prices for
customer service and repairs from Dell increase and
practically eliminate any price advantage they had.
New Products gets new business
6. What information systems can HP set up that
competes with Dell?
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To better compete with Dell, HP could set up a new
information system that better deals with its existing
customers and also new potential customers.
A new information system regarding customer
service and more accurate product information and
ordering details would make the customer happy and
more inclined to buy from HP once, if not several
times.
The downside to Dell as of late has been the decline
in quality of its customer service. A better way to
troubleshoot for customers would help propel HP
forward.
7. Do you think Dell would have been successful if the internet
had not been invented? Not been invented? Why?
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I think Dell would have been successful without the Internet,
just not as successful as they are.
The internet has made it so easy for someone to order a Dell
computer online, directly from the manufacturer.
- Dell's advertising reaches all over the world on the
Internet, not one specific region if it were in a newspaper, on TV,
or on a billboard.
The Internet has improved the way we live, including shopping.
While Dell achieved moderate success before the Internet was
invented, the creation of the Internet took the company to
unexpected heights. Choosing a computer out of a catalog or
some other advertisement before the Internet would make me,
as a consumer, a little nervous.
The Internet has made it possible to build your machine to
whatever specifications you want instead of picking an item out
of a catalog.
Enhance of shopping has also occurred with online shopping.