An example of an E-commerce success and its causes

Dell is one of the successful examples that using E-commerce to support the virtual company. Dell computer was founded by Michael Dell in 1984, while he was a student at the University of Texas Austin. Dell began by selling upgrades of IBM-compatible PCs and in 1985 began to sell its own brand of PCs. Dell grew rapidly in the mid-1990s. By 1999, Dell had become the best personal computer seller in the United States.

By now, Dell became a market leader that constantly growth because of its effective E-commerce strategies. Dell using the direct marketing strategies that focuses on direct sales to customer to eliminate the unnecessary intermediaries such as wholesaler and retailers. It able to cut down the retailer costs and makes the company better understand of the customer requirement. In the same time, Dell able to offer the cheaper price to the customer because of eliminates the unnecessary cost.

Nowadays, people can buy Dell computer over the internet which covering at least 80 countries. To compete with others, Dell also conducts its business in the physical world. However, most people still prefer the online shopping through Dell website. Besides, Dell adopts the Just-In-Time system that only produces the new inventory if there is an order placed. It able to save inventory cost and avoid the inventory loses value before it can be sold. Dell also improves the relationship between all participants of supply chain to make sure that the good quality materials are provided by supplier on time and the computers ordered by the customer are delivered in a timely basic. Those are the reasons that Dell success to keep its customer from other competitors.

Factors that Dell becomes a successful company:

1. Convenience

You can buy the Dell computer in the online store anytime. Besides, you also can have a better understanding about the products through internet. Dell also provides effective and efficient delivery services. For example, products will be delivered to customers in 5-8 working days.
2. Secure shopping

You no need to worry when using credit cards to pay online. Dell use industry-standard data encryption and positive identification technology to ensure your online transactions are safe & secure.

3. Low cost provider

Dell’s strategy of selling their products with no middleman and no retail outlets can cut down the cost of middleman and sell to the end user directly at a lower price. In the other hand, it creates flexibility and market advantage because Dell is a low cost provider, their products are cheaper and in good quality. The low costs can attract customers and the quality of their products is maintained from time to time.

4. Mass customized products

Dell aims to meet exactly the different needs of its customer by offering mass customized products over the internet. Customer can customize their own computers by launching Dell’s website. Besides, salespeople had to install their own computers, so they gained hands-on experience with the equipment they'd be selling, and can better help customers make informed decisions and solve problems with the product.

5. Customer services

Dell builds a good relationship with its customer in order to provide better customer services on sales and after sales. Good communication exists with suppliers about customers’ specifications, so that they are able to deliver on time. Good communication with employees about customers’ information also can make them serve customers better.

Sources:

http://www.dell.com/windows7
www.dell.com