Michael Dell Business Model for Dealing Directly with Customers Traditional Business Practices in Today's context

1. Direct to Customer Interaction
UpekhaVandebona
upe.vand@gmail.com

2.  Bypassing of traditional sales and distribution
channels to reach consumers directly
Michael Dell

4.  Built on a vision of customer responsive order
fulfillment.
 Gives customers the ability to order custom
configurations of PCs online
 This vision requires a flexible supply chain
management.The frictionless flow of
information through the supply chain is
central part of Dell’s vision.

5.  Uses direct sales approach with no
middleman.
 All customer service is done via the web
helping to cut costs.
 Receives money before product is shipped.

7. Briefly explain the differences between the “make
and sell” and “sense and respond” approaches in
business. (25 Marks)

8. 2014 -4. (a) Briefly explain the differences
between the “make and sell” and “sense and
respond” approaches in business. (25 Marks)
Make and Sell –The company will produce
the goods and sell it to the customers
Sense and Respond – identify the
customers and their patterns and sense
what they want and produce it to them
before hand

9. Dell Computer Company uses a Direct-to-
Customer approach in doing business where there
are no middlemen.The company also makes-to-
order rather than sell pre-manufactured products.
Briefly explain five (5) advantages of this approach.
(20 Marks)

10. 2013 -4. (d) Dell Computer Company uses a Direct-
to-Customer approach in doing business where
there are no middlemen.The company also
makes-to-order rather than sell pre-manufactured
products. Briefly explain five (5) advantages of this
approach. (20 Marks)
• Can sell at lower prices
• Build to customer order
• Receive payment earlier
• Speed up new product release cycles
• Use customer data to provide customized value added
service

11. 2012 -4. a) Briefly explain the validity of the e-
Business Models in today’s context and the
differences in old and new Business strategies.
(20 Marks)
2009 -4. (b) (30 Marks)
2010 -4. (a) (20 Marks)
Compare and contrast the traditional business
models and eBusiness models in
today’s business environment.

12. Compare and contrast the two concepts Mass
Production and Mass Customization.
Explain how eBusiness can help to implement
these concepts.
(30 Marks)

13. Mass customization
• Differentiating a product for a specific customer
• Possible to add and/or change functionalities of a
core product or to build fully custom enclosures from
scratch
2010 -2. b) Compare and contrast the two
concepts Mass Production and Mass
Customization.
Explain how eBusiness can help to implement
these concepts. (30 Marks)

14. Mass production (Traditional Factory Approach)
• Production of large amounts of standardized
products
• Assembly line production (automacy)
• Mass production is capital intensive and energy
intensive
• Machine use is high proportion to workers
• Mass production line is expensive as usage of robots
• The probability of human error and variation is also
reduced because of machine use
• A reduction in labor costs
• Inflexible because it is difficult to alter a design or
production process after a production line is
implemented