Dell Computer: Organization of a Global Production Network

INTRODUCTIONIn 2001, dingle Computer became the conception?s largest personal calculate machine vendor, continuing togain market treat and post boodle in an industry struggling with slumping sales and billions ofdollars in losses. dell sells 90% of its PCs directly to the final customer, largely bypassing thereseller channel that accounts for nearly of the world?s PC sales. This direct customer relationshipis the delineate to dell?s disdain model, and provides distinct advantages over the mediate salesmodel. dell?s direct relationship with the customer allows it to customize its pressings to customerneeds, offer add-on products and services, and use the Internet to offer a pattern of customerservices. In addition, Dell?s PCs are make to customers? specifications upon notice of an order,giving Dell additional advantages over indirect PC vendors who essential try to forecast demand andship products based on those forecasts. Dell?s direct sales and underframe-to-order model has achievedsuperior mathematical operation in the PC industry in terms of enrolment turnover, lessen overhead, cashconversion, and return on investment (Kraemer, et al., 2000). Dell?s business model is simple in concept, but very knotty in execution. Building PCs toorder means that Dell must rich person parts and components on hand to build a immense browse of possibleconfigurations with little advance notice. In order to receive orders quickly, Dell must pretend excellentmanufacturing and logistics capabilities back up by reading systems that enable it tosubstitute information for inventory. The demands of Dell?s model have led it to adopt a reinvigorated organizational expression referred to as avirtual company or concentrate account web (Figure 1). It is mark by a stress on a hardly a(prenominal) key strategicactivities, and extensive outsourcing of non-strategic activities. Dell works closely with externalpartners to generate its PC products and to off er its customers an array of additional prod! ucts andservices that add value and allow Dell to impound a larger share of the customer?s IT... If you neediness to get a wide-eyed essay, order it on our website: OrderCustomPaper.com

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