6.13.2008

An example of an E-commerce success and its causes

Dell's Successful Use of the Internet as a Selling Channel


Michael Dell is the founder of Dell. He must be familiar to many young people, especially to those who are determined to go in for business. Born in 1965, this wizard boy is able to turn himself into a multibillion-dollar tycoon in a matter of a few years. Dell’s success story begins with a brilliant idea. This idea may seem like commonsense today, but Dell is the first to hit upon that idea. This is the first secret of his success: to be the first. Success usually belongs to the person who dares to be the first, to be creative and original, and Dell is always bursting with new ideas. Another thing is his ambition. Dell is highly motivated.

Dell is currently the world’s number one PC supplier, a position in the market they took from Compaq in April 2001. In short, the company’s success story is mainly down to their innovative direct business model, which pays particular attention to the selling process where Dell completely bypasses all intermediaries and/or middlemen. This is because Michael Dell believed they add little if no value to the end product, instead just gaining a considerable mark-up for
selling the product.


Hence, they became the first PC manufacturer to completely cut out retailers and instead sold customized computers directly to customers based on their exact specifications. This selling process began over the telephone and via catalogues but in 1996 Dell embarked on Internet based selling on their official website, Dell.com, providing customers the opportunity to buy desktops, notebooks and servers directly from them.

In order to power online commerce successfully for any business, the basic technology required is the installation of servers and data-storage systems. The website Dell.com runs on industry standard Dell Power Edge servers. These powerful servers are backed up by Dell/EMC Fibre Channel storage.

Dell is the world's leading computer systems company. They design, build and customize products and services to satisfy a range of customer requirements. Dell is an example of an E-commerce success.

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