Most of Dells sales are to businessed involve small businesses (up to 200 employees), medium and large businesses (over 200 employees), government, education, and health-care organizations. To make their brand different, Dell has not only made use of an creative business model, they have always communicated to consumers and business. Dell provides comprehensive Enterprise Resource Planning systems and e-commerce solutions for their B2B customers. At the year 2008, Dell launched "ProSupport" program for businesses, which is a services-and-support program that offers more options for Dell's clients to tailor services from Dell to fit their own specific needs.There are also a lot of companies that providing B2B solutions compete with Dell in this area, however,over the last few years,Dell has been a very popular choice because they Adhere to abide by their brand promise -- to provide customized products, integral service, timely delivery, and justifiable prices (http://www.articlesnatch.com).
Business-to-consumer (B2C)
Definition:
"Consumer shopping on the Web, often called business-to-consumer" (Schneider 2002, p.4).
It is also stated that "A form of doing business that deals with selling goods and services to the consumer marketplace" (http://www.geek.com/glossary/B/business-to-consumer-b2c/).
Example:
The most important contents Dell website includes today:
Fully built online ordering method that allows up to 3000 product configurations.
Online order status tracking at real time.
Comprehensive technical support information with 60,000 pages more and trouble shooting guides.
When visiting the Dell website as a consumer ,moving mouse over the appropriate link then various of functions/selections for consumer use will display on screen, from laptops to mobile phones to printers and ink supplies.
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Figure 1. Dell.com (http://www.dell.com/business/laptops?~ck=mn)
It's easy and convenient for consumers to select the products they want.
For further analysis, here we choose Inspiron 15 (1545). The first step is to adjust performance. Here we can select the system colour, processor, memory, operating system and so on. The second step is software and services. Here are warranty and some softwares. The third step is the accessories. Consumers can buy printers, mice, bags and other accessories here. The last step is review and checkout. A complete purchase process is done. The whole process is easy and apparent. Users can finish this process in a minute and it is user friendly.
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Figure 2. Process of purchase(http://configure.us.dell.com/dellstore/config.aspx)
Dependable quality, low in price, large number of potential customers and guaranteed after-sales and maintenance are four important key for attracting more customers. Nowadays, with the increasing number of Internet uses, B2C has great development potentiality.
Intrabusiness EC
Definition:
Intrabusiness refers to all internal organizational activities in an organization.Such as exchange of goods, services, or information among several departments and staffs.
It also means the automation from sales to inventory.
Example:
The Dell intranet includes a huge information system with over 0.5 million pages to facilitate better knowledge transmission and reduce the amount of training cost within the company. Dell also uses its intranet to automate internal organizational procedures, offer stuffs programs to update their global directory entry and manage their todo-lists online.
The intranet which dedicated to ethics, compliance, privacy and records management gives employees convenient access to information. Here are the site features: situational videos, toolkits, Dell Code of Conduct, frequently asked questions (FAQs), sample scenarios, presentations, status reporting, education requirements, enventory of Dell policies and team information (http://content.dell.com/us/en/corp/d/corp-comm/cr-ca-employee-ethics-tools.aspx).
Collaborative Commerce (C-Commerce)
Definition:
"Online collaboration and interactions among the employees, business partners, and customers of diverse firms belonging to a trading community or industry segment"(Davies P, 2004).
Example:
Dell has many business partners with whom it needs to communicate and collaborate.
a) To deliver its computers to individuals, Dell uses shippers, such as UPS and FedEx.
b) Dell built the webMethods B2Bi (business-to-business integration) Solution Suite to meet its integration challenge. The B2Bi Solution Suite is consist of a set of software applications and a comprehensive B2B integration environment supported implementation methodology. "Integrating trading partners is a continuation of Dell's e-strategy. We're building an integration deployment platform to help customers take the next step in B2B commerce by linking their systems with ours"（Fountain 2000)
c) Third-party logistics companies are also used by Dell to collect, maintain, and deliver components from its suppliers.
d) Dell has many other partners in business.
Question 2
Online Direct Marketing (Manufacturer Model)
Direct Marketing is a marketing approach that the manufacturers sell their products to customers 'directly',but not go through the traditional channels.For example for computer manufacturers (such as Dell), there are no channel intermediaries such as distributors or retailers join the market procedure.In a simple word, direct market means the deal is done directly and only between the manufacturer and the customer.
Dell's Direct Model: Customer Focus Is the Advantage
Dell's direct business model is the soul of Dell. From individual consumers to some of the world's largest corporations,Dell's relationships with its customers are as the word 'direct'.
Dell's direct model has 3 key parts:
One-to-one relationships with its customers.
Each product is built for each of customers, a computer is produced only when a customer request and pay for it.
The lowest cost structure and sale price between major competitors.
Without high mark-ups from the reseller channel and cost of management and operation, Dell gets the cost superiority. Dell manages its inventory more efficiently for almost all the business and then passes the cost savings on to its customers. As a result, suppliers and customers feel Dell as one of the most attractive company. A computer is produced by Dell only when a customer request and pay for it.The direct selling mode is a dominant for Dell because the company maintains a huge number of inventory and this helps Dell saving a lot of money in inventory maintenance costs. Dell wisely using the Internet to manage its supply chain to get more efficiencies. Thus the suppliers could get the most timely and accurate information of their products that are selling by Dell; they have full details of anything of each product from the feedback of customers. The global nature strategies of Dell provide a safe and far ranging environment of doing business with Dell. (http://www.sovereign-publications.com/dell.htm).
Catalog Merchant
Catalog Merchant - mail-order business with a web-based catalog. Combines mail, telephone and online ordering（Rappa 2006).
Nowadays, more and more companies start to sell their products by putting online catalogs at Internet. Such a catalog supply website normally includes the details of products such as price, discount, shipping methods, payment methods and so on. This kind of system normally powered by a shopping cart system(e.g.Zencart) to the website hosting.
For example, Dell firstly offered personal computers via mail order. Customers visit http://dell-ecatalog.com by using an E-catalog.
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Figure 3. Dell-Ecatalog (http://dell-ecatalog.com/)
Here, Dell-ecatalog shows an apparent catalog for consumers. All relative information are shown to the users. The buttons above is easy for users to use. Even for the elderly people, impaired people, this is absolutely a convenient shopping precess. Online catalogs also give the buyers to place order any time even at night and they can compare prices and choose the right computer they want. Online catalogs make Dell much easier to find new clients/customers at Internet virtual world , it saves a lot of money by skip printing real advertisement. And much more easily than real prints, electronic catalogs could be changed, modified and updated.
Product and Service Customization
Dell has a basic concept:"Dell has the ability to customize each individual computer, which is a powerful competitive advantage for us as well as time saver." --Ken York, Vice President of Operations, GBCblue
By building the front end solution,Dell Hardware Customization service,Dell was the first brand who offers customization service. The system integrates hardware, images, software, description, and documents with user's systems. In the past 25 years, "customize depend on user's needs" is the core of Dell's direct selling model. Users can configure their own customized personal computer depend on their demand. They can choose CPU, hard disk, memory and the like to fulfill their demands. Today, Dell brings customization service to a great hight of development. They make the personalized customization from inside to outside. They understand the internal needs of consumers and provide products which customers like. They take this as their most important thing. On the other side, consumers can choose the notebook cover color, pattern and material by themselves.
Here are the benefits of customization service:
Convenient of new hardware transition/deployment
Easily compatibility and consistency control
Keep maintenance standards under control
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Figure 4. Customization Service (http://fightmagicitemrun.blogspot.com/)
Question 3
Differentiation (Key to Success - "Dell Model")
Dell Computer Corporation started from 1000 dollars to more than 410 billion for the annual turnover after 20 years of development effort. The creator of this business miracle - Michael Dell which founded Dell talked about the secret of success - "We won because we have a better business model." This model is the famous "Dell model", or "direct" model. Depend on this model combined with efficient production process and scientific cost control management, Dell made a big success in the personal computer market in the past 20 years.
"Dell Model" Details:
Dell assemble products according to customer orders, and then send the product to customers directly. The essence of this model is that they don't have the traditional middlemen and retailers in the sales chain which saves much costs and reduces prices of product.
This model has the following features:
Produce computers by orders: Dell assemble products according to customers orders from the Dell Web site and telephone. Thus customers are free to choose the product configuration. Dell can order the accessories according to the order so that there is no need to hoard a lot of accessories which make funds tied up.
To establish direct contact with customers: Dell establishes a direct contact with customers through direct sales model. It not only saves costs and time which products cost in the intermediate link but also can understand customer's needs more direct and better. And this helps retention of customers.
Cost efficient: Dell greatly reduce production costs by establishing an efficient supply chain and production process management.
Product Standardization: Dell's technical products are mature and standardized products. So the company can always share to the customers about the latest achievement after massive investment and research.
Low Cost + High Efficiency + Good Service
Low cost is Dell's survival rule and core to "Dell Model". While the low-cost must be achieved by high efficiency. Dell's manufacture and sales process is famous as its accurate management, sooth and high efficiency. This effectively minimizes cost.
To simplify the processes is Dell's main step to improve efficiency. The company divided telesales to 8 simple steps. The automated production line operates all day. Accessories are sent from one side of production line and turned to be products and sent away to the other side of production line in less then two hours. And then delivered directly to the customer service center. Dell has 550 patents in simplified progress. Analysts generally agreed that these patents is the main reason that other companies can not really copy the seemingly simple "Dell model" .
In addition, the focus on establishing their brand and improve service quality is Dell's another key to success. Dell not only has a strict quality assurance system, but also established a strong after-sales service network. Dell staff not only provide the customers comprehensive technical advice and maintenance guidance services through website and telephone, but also will make a call to the customer for comment after selling products.
Focus - "Diversification" Business Strategy
High efficiency can not fully explain the continuous success of Dell. Dell's chief operating officer Rollins said, Dell's another way to success is to find the breakthrogh point for high-tech production market accurately, and then ravages other competitor's market quickly.
Dell usually intervenes a market when the market becomes mature, the industry standard has been formed and accessories supply are abundant. And then occupy the market quickly with lower prices. Rollins said, practice has proved that when a new product becomes mature, the "Dell model" always brings the company advantage.
According to the "market intervention" theory, Dell put forward "diversification" expansion strategy which surprised other computer companies after it consolidates its position in personal computer market. In recent years, Dell has accelerated the pace of expansion, gradually involved in high-end portable computers, servers, network storage systems, workstations, switches, PDAs, printers, cash registers and other products.
Question 4
Mapping the 7Cs framework
Dell (www.dell.com)
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Figure 5. 7Cs framework
Capabilities of Dell.com
Context: Integrated
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Figure 6. Integrated context (http://www.dell.com/ )
Figure 6 shows the interface of dell.com. We can see many pictures and text. Pictures make the website more active and nice. Dell's integrated approach is a balance of form and function that creates an attractive and easy-to-use interface.
b) Content: Product-dominant
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Figure 7. Website menu (http://www.dell.com/)
This is the menu of Dell website. There are 4 options and each for different consumers. This website is mainly used for selling electronic products like computers, printers etc.
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Figure 8. Computer catalog (http://www.dell.com/content/products )
c) Community: Limited Community
Community is about how different users can communicate at the website.
KDBC4RF(YITM3CGR3X5JY6R Figure 9. Dell community (http://support.dell.com/support )
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Figure 10. Support Forums (http://en.community.dell.com)
Dell give consumers a platform to communicate each other. They can ask any technical questions at Dell Community. And they will get pleasant answer here!
d) Customization
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Figure 11. View and edit preference
(http://ecomm.dell.com/GSC/Subscription/Preferences)
In Dell website, there are no personalized preferences. There are product preferences. And we can choose the category with which you are the best fit and when to make next computer purchase. Then the preference will be customized accordingly.
e) Communication: One-to-many nonresponding user and One-to-one responding user
I. One-to-many nonresponding user
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Figure 12. FAQs (http://support.dell.com/support/topics/global.aspx/support/dellcare/en/faq）
Dell website's FAQs is one way for them to communicate with consumers. Consumers can get answers for some usual questions here.
Second, when a new user create a new account. There is option to ask if he want to get the newest production information by e-mail. Dell will send e-mails to those who want to know the new products or new offers.
II. One-to-one responding user
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Figure 13. Contact to sales
(http://support.dell.com/support/topics/global.aspx/support/dellcare/contact_sales_support?c=us&cs=19&l=en&s=dhs&~ck=mn )
Dell can provide customer service by swapping e-mails or through live online dialogue. The website provides "Contact us" link. Consumers can call the service center or e-mail them. The service staff will give them a pleasant answer for their questions one by one.
f) Connection: Outside Links
All links in Dell website are using outside links.
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Figure 14. Outside link example (www.dell.com)
Like the picture above, when we select "Laptops & Minis" at home page, the website will take us out of home site and to a new site as below.
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Figure 15. Outside links example (http://www.dell.com/home/laptops )
g) Commerce
There are many tools that sites provide to originate and facilitate commerce:
Registration
Users information and preference can be stored in the site. Users can create a new account and their information will be stored in Dell servers forever.
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Figure 16. Login module (http://ecomm.dell.com/myaccount/login.aspx )
Shopping Cart
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Figure 17. Shopping Resources(https://ecomm.dell.com/myaccount/main.aspx?c=us&l=en&s=dhs&cs=19 )
Entering a user's account, we can see the shopping resources which including shopping cart, wish lost and payment information etc.
Security
Dell website has security technologies to guarantee the security of transactions and related data through encryption and authentication technologies.
Credit-Card Approval
Credit-Card payment technology can be used in Dell website.
Figure 18. Credit cards payment
(https://ecomm.dell.com/dellstore/chkout1_signin.aspx?c=us&cs=19&l=en&s=dhs&itemtype=&BackUrl=A1B11454F58921CAD2EA8B16C4EBADF0738FA7740A45103E3D45725FB887FF62B418D7A549A1E67AFA3BB52EDD57756C )
One-Click Shopping
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Figure 19. Process of purchase
(http://configure.us.dell.com/dellstore/config.aspx?oc=dncwfx2&c=us&l=en&s=dhs&cs=19&kc=inspiron-1018)
Shopping at Dell is very easy. User only need to choose the product they want.
Order Tracking
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Figure 20. Order tracking
(https://ecomm.dell.com/myaccount/main.aspx?c=us&l=en&s=dhs&~ck=pn )
Dell website also supports order tracking. Consumers can track their orders any time.
In conclusion, Dell website provides a high commerce functions that enables financial transactions.
