PC can be built & sold directly to customers ; by doing this Dell could address their specific needs & provide the best computing solutions to meet those needs leading to :-
a)Reducing marketing & sales cost by eliminating markups of distributors & retailers
b)Built-to-order reduces the cost of inventory & risk of retaining excess inventory.
Price for Performance - Efficient procurement , manufacturing & distribution process – hence powerful systems at low price.
Customization :– Built-to-order systems to meet specific needs according to customer specifications.
Reliability , Service & Support:-Direct customer interaction allows Dell to provide top-notch service before & after sale. This strategy improves customer satisfaction & reduces cost & risk to the company.
The money is received well in advance & hence financial stability is more.
PremierDell website where all information regarding products can be viewed(Automated 24//7 system built-to-order.
Dell did not have a distributor channel & hence the concept of push- selling by retailer was not there.
Dell mainly targeted the corporate segment & hence a major segment of the market, i.e. non corporate remained unattended to.
Unavailability of finished products in the inventory could lead to not being able to deliver in time in case of massive orders bound by a strict timeline.
Dell could have been able to diversify their portfolio and delve into the automotive industry (by laying the foundation for Automated Car Navigation system)
Dell started retail because everybody was doing so and this very attitude made Dell more of a follower in spite of being a leader in the computer segment.
The whole build-to-order mechanism was suited for tech-savvy people and hence people not so conversant with computers faced difficulty while placing the order . Also ordering over the internet without seeing or trying out the product might lead to less number of buys.
First of all, Dell needs to target less tech-savvy people who don’t have good knowledge about computers as well as non-corporate clients.
Secondly, some stores can be opened wherein specialized personnel would be there , who would resolve all query regarding available components as well as help to decide on the final buy . Also few demo finished products can be there for customers to try hands on.
Third, add more information about the components so that even low-tech people could understand.
Fourthly the car market segment can be tapped as Michael Dell was a guest speaker there & they have faith in the brand called Dell & this faith can be used for portfolio diversification.
Fifth, Kiosks can be placed at strategic positions (eg. City centre or Town hall or Subways ) with option of placing the order as well as with detailed description of the components in simple language for the common people to understand.
Information workshops can be made for creating awareness.