Question-1

What have been the key success factors for Dell?

Answer-

Dell’s direct to customer business model is the key factor to the company’s dramatic growth and
success and has focused on selling directly to customers. This helps eliminate the middleman and
offers customers more powerful configured systems than most competitors. The direct model
enables Dell to develop a clear understanding of customer expectations, which strengthens
customer relationships and increases customer satisfaction and loyalty. One of the characteristics
that distinguishes Dell from its other competitors is that Dell provides the mode to custom the
computers of the customers’ choice and taste and deliver the system to the customer as it is the
most critical success factor behind Dell Computers. Therefore, Dell knows how it will be realized and
ensure only investments of appropriate amounts of resources to obtain benefits. Dell gives their
payment authorization which means that Dell receives the money in advance and make the payment
to suppliers thus they do not have any issues of capital. Dell has also provided an open field for the
consumers in web site where they can design their own computers and place orders which is really
an innovative idea. Dell initiated ways to overcome its weaknesses and use its strengths to gain
advantages over its competitors by careful analysing of the factors that contribute to the company’s
success in business strategies that had implemented created the path for the company’s continued
success which is a good market strategy for long term. Their business strategy involves purchasing
the core competencies of the organization to achieve a defined high level goal or objective. It also
includes the analytic and decision making process surrounding what to offer, when to offer and
where to offer as a competitive plan. The supply chain strategy also focuses on driving down
operational costs and maximizing efficiencies. Dell is an organization which may choose a strategy
directed at supplier management as a way to remain competitive. By providing a clear purpose, the
organization keeps sight of the strategy and is able to devise tactical steps to achieve the goals.