Q. What explains Dell’s advantages?

It was too late to challenge the technology standard and consumer’s comfort with the PCs.
Dell focused on the new marketing & distribution strategy:-

Cost Leadership: Differentiation: Focus:

Production & Logistics Sales & Marketing Sales & Marketing

1. Elimination of buffer
2. Just-in-time delivery to reduce
inventory
3. Direct delivery of components to
customers to save on time as well as
money.
4. Encouraging suppliers to locate their
warehouses and assembly facilities
near Dell’s plants
Firm Infrastructure
1. Very narrow gap in accounts
payable & receivable.
1. Dell took orders directly
from customers
2. Premier treatment to
relationship buyers
Products & Services
1. Two lines of products
2. Financial services which
offered leasing, technology
planning, and asset
management services
1. Customers segmentation
2. Outside & inside reps working in
coordination with after sales team
3. Reps had all information about customers
4. No selling to inexperienced customers
5. Region wise division of sales force
Production & Logistics
1. Products tailored to customer needs
Products & Services
1. Installation of proprietary software
2. 24 hrs availability of customer services
3. Focus on customer support information
Q. Why didn’t Dell succeed in retail segment?