E-commerce Sucess And Its Causes

Michael Dell, the founder, CEO, and chairman of Dell incorporation, he became the youngest CEO in history and transformed Dell incorporation from a traditional virtual e-commerce to a modern click-and-mortal e-commerce.

In fact, Dell incorporation is an example of e-commerce success today. In order to survive in the competitive environment, Dell had established his owned model and framework to tackle any bottleneck faced in the information age.

Dell is not the biggest innovator in the computer industry but he just wants to move one step further than all his competitors. Dell always sticks to the framework and strategies which had created by shrinking the operation cost, eliminating middleman to direct deal with customer, and study about the customer needs as opposed to his competitors instead of spending a huge amount of money in doing research and development. Since Dell was incorporated it is directed in the way of customer-centric operation by providing product customization and better customer services and needs including after sales services.

Business man acknowledges that the success of a particular corporation is depends on the surrounding people (Labor source) rather than one person itself. Thus, one of the strategies Dell emphasize is building the loyalty of the organization staffs and motivating them by granting more responsibilities and authorities to let the employees feel themselves as part of the company encompass identical interest in achieving organization goal.

Besides, Dell adopts just-in-time basis in managing his inventory in order to prevent inventory overload. With the internet conveniency, Dell is able to connect with suppliers and customers without using phone calls which are high in cost. Obviously, the finished good inventories are curtailed tremendously. Dell does not aim to be perfect however he is much more concern about the changing of the business trend and how to effectively adapt to the changing environment to become more flexible. And this is how DELL become a well-known brand in global aspect as well as computer industry.



Sources from:

• http://www.dell.com/downloads/global/corporate/speeches/msd/1999_11_01_msd_economy.pdf
• http://www.businessweek.com/technology/content/jan2007/tc20070131_658871.htm?campaign_id=msnbc_dell
• http://www.inc.com/articles/1999/09/15567.html
• http://news.cnet.com/2100-1014_3-5170114.html
• http://ect5.blogspot.com/2009/06/example-of-e-commerce-success-and-its.html