Dell Computer: Organization of a Global Production Network

INTRODUCTIONIn 2001, dell Computer became the conception?s largest personal cypher machine vendor, continuing togain market treat and post mesh 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 around of the world?s PC sales. This direct customer relationshipis the backbone to dell?s disdain model, and provides distinct advantages over the collateral salesmodel. dingle?s direct relationship with the customer allows it to burn 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 figure of speech-to-order mod el has achievedsuperior exploit in the PC industry in terms of enumeration turnover, lessen overhead, cashconversion, and return on investment (Kraemer, et al., 2000). Dell?s business model is simple in concept, but truly knotty in execution. Building PCs toorder means that Dell must rich person parts and components on hand to build a immense army of possibleconfigurations with little advance notice.

In order to receive orders quickly, Dell must pretend excellentmanufacturing and logistics capabilities support by reading systems that enable it tosubstitute information for inventory. The demands of Dell?s m odel have led it to adopt a parvenue organi! zational expression referred to as avirtual company or arrive account web (Figure 1). It is mark by a strain 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 offer its customers an array of additional products andservices that add value and allow Dell to make prisoner a larger share of the customer?s IT... If you necessity to get a wide-eyed essay, order it on our website: OrderCustomPaper.com

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