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DELL LEVERAGES THE INTERNET, DIRECTLY

DELL LEVERAGES THE INTERNET, DIRECTLY. Jim, Pam, Keith Group D. How has Dell selling directly given them a competitive advantage?. Brings them closer to customer Customize computers Cut costs by cutting out retail stores Cause buyers to have high switching costs Creates entry barriers.

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DELL LEVERAGES THE INTERNET, DIRECTLY

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  1. DELL LEVERAGES THE INTERNET, DIRECTLY Jim, Pam, Keith Group D

  2. How has Dell selling directly given them a competitive advantage? • Brings them closer to customer • Customize computers • Cut costs by cutting out retail stores • Cause buyers to have high switching costs • Creates entry barriers

  3. What Information Systems Does Dell Need To Sell Directly To The Consumer? • Direct Approach • Direct Customer Relationships • Products and Services • Ex: adapted IT systems, user interfacece • Electronic Data Interchange • Online site for customers to customize their computer

  4. What Other Programs Has Dell Created That Give It A Comptetitive Advantage? • Offers build to order production • Focuses on suppliers • Offers deployment services to organizations • Offers Maintenance to systems

  5. Will Dell Computers Be Cheaper than HP and Other Computers? • Yes • Less overhead costs • Less storage costs

  6. How Can HP Successfully Compete With Dell? • Make quality products at low price • Allow more customers to see product

  7. What Info. Systems can HP set up to better compete with Dell? • Retail Channel Strategy • Allows customers to have hands on experience • HP’s computers are selling in more stores than Dell(10 times more) • Offers twice as many models than Dell

  8. Would Dell Have Been Successful If The Internet Had Not Been Invented? • Yes • Would take calls over phone for custom orders instead of online still allowing them to keep costs lower than having a retail store. • Have more samples in stores, allowing customers to see the product in person

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