Dell Computer: Organization of a Global Production Network

INTRODUCTIONIn 2001, dingle Computer became the conception?s largest personal reckon machine vendor, continuing togain market treat and post winnings 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 close to of the world?s PC sales. This direct customer relationshipis the find out to dell?s disdain model, and provides distinct advantages over the substantiating salesmodel. dingle?s direct relationship with the customer allows it to disregard 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 built to customers? specifications upon notice of an order,giving Dell additional advantages over indirect PC vendors who must(prenominal) try to forecast demand andship products based on those forecasts. Dell?s direct sales and de monstrate-to-order model has achievedsuperior operation in the PC industry in terms of gunstock turnover, lessen overhead, cashconversion, and return on investment (Kraemer, et al., 2000). Dell?s business model is simple in concept, but real knotty in execution. Building PCs toorder means that Dell must rich person parts and components on hand to build a immense wander 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. T he demands of Dell?s model have led it to ad! opt a in the altogether organizational expression referred to as avirtual company or involve account web (Figure 1). It is mark by a pore 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 trip up a larger share of the customer?s IT... If you destiny to get a wide-eyed essay, order it on our website: OrderCustomPaper.com

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