After 20 years' efforts, Dell Computer Company of the United States has developed from 1 000 to a global enterprise with annual turnover exceeding 4 1 100 million. Michael dell, the creator of this business miracle and the 39-year-old founder of Dell Computer Company, said: "We won mainly because we have a better business model." And this model is "dell model", or "direct selling" model. Relying on this model, supplemented by efficient production process and scientific cost control management, Dell has achieved success in the PC market in the past 20 years.
The specific content of "dell model"
Dell assembles products according to customers' orders and sends them directly to customers. The essence of this model is to abandon the middlemen and retailers in the traditional commercial sales chain, save costs and reduce product prices. There is no ready-made theory for this model, which can be summarized as follows:
-Make-to-order: Dell assembles products according to orders placed by customers through websites and telephones, which gives customers full freedom to choose their favorite product configurations. The company orders accessories according to the order, without hoarding a large number of accessories and occupying funds.
-Establish direct contact with customers: Dell establishes direct contact with customers through direct sales, which not only saves the time and cost wasted in selling products through intermediate links, but also can understand customers' needs more directly and better and cultivate a stable customer base.
-Efficient processes to reduce costs: Dell has greatly reduced production costs by establishing ultra-efficient supply chain and production process management.
-Standardization of product technology: Most of Dell's technical products are standardized and mature products, so the company can always share a lot of technical investment and the latest achievements of R&D in related industries with customers.
Low cost+high efficiency+excellent service
Low cost has always been the survival law of Dell and the core of "dell model", and it must be achieved through high efficiency. Dell's production and sales process is famous for its precise management, smooth flow and super efficiency, which effectively controls the cost to the lowest level.
Simplicity is the main way for Dell to improve efficiency. The company divides the telemarketing process into eight simple steps. Its automatic production line runs around the clock. Accessories come in from one end of the production line, become finished products in less than two hours, go out from the other end, and then be directly transported to the customer service center. Dell has 550 patents to simplify this process. Analysts generally believe that these patents are the main reason why other companies can't really copy the seemingly simple "dell model".
In addition, focusing on building product brands and improving service quality is another magic weapon for Dell. Dell not only has a strict quality assurance system, but also has established a strong after-sales service network. Dell staff not only provide customers with comprehensive technical consultation and maintenance guidance services through websites and telephones, but also take the initiative to call customers for consultation after selling products.
"Diversified" Business Strategy Foreign Language Learning Network
Efficiency alone cannot fully explain the real reason for Dell's continued success. Rollins, chief operating officer of Dell, said that another way for the company to win is to accurately find the entry point of the high-tech product market and quickly seize the market share of competitors.
Dell usually intervenes in a certain market when the market is mature, industry standards have been formed, and the supply of accessories is relatively sufficient, and quickly grabs the site at a low price. Rollins said that practice has proved that when a new product matures, "dell model" always puts the company in a favorable position in the corresponding market.
According to this "market intervention" theory, after consolidating its leading position in the PC market, Dell ambitiously proposed a "diversified" expansion strategy that surprised its peers. In recent years, Dell has accelerated the pace of expansion, and has set foot in high-end portable computers, servers, network storage systems, workstations, switches, PDAs, printers, cash registers and other products.
As early as 2002, Rollins put forward a grand development plan, that is, to double Dell's turnover to $60 billion in five years. Although some people criticize some of Dell's practices, people have to admit that Dell does have the ability to achieve the above goals.