Business Model Innovation at Dell
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTA058 |
Electronic Format: Rs.
500;
Courier (within India):Rs. 25 Extra
Themes- |
| Case Length |
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15 Pages |
| Period |
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2004 |
| Organization |
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Dell |
| Pub Date |
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2004 |
| Teaching Note |
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Not Available |
| Countries
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Global |
| Industry |
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Computer |
Abstract:]
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Dell (formerly Dell Computer) has emerged as one of the
leading players in the PC industry through its direct selling model. Dell's
build-to- order format has got a big boost with the arrival of the Internet. The
company has maintained momentum in a rapidly commoditising industry, where most
other players are still struggling. As a cost leader, Dell has concentrated on
activities where it can add most value and on market segments where profits are
highest. Dell has ensured that customer service is not diluted in the process of
cutting costs. Many players in the PC industry have attempted to replicate
Dell's business model but failed. It is Dell's disciplined execution that has
driven Dell's success. Dell has also demonstrated that it is not R&D spending
alone which determines a company's success.
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This case can be used to understand how an innovative
business model evolves.
Contents:
Keywords:
Dell, Dell computers, Strategy, PCs, Michael Dell, Direct from Dell, Business model innovation, Compaq, IBM, Commoditising industry, Fortune 1000 companies, Customer relations, Cost leader, Build-to-order, Direct selling
Business Model Innovation at Dell
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