1. The secret of Dell’s entrepreneurial success is:
In a sense, times create heroes, but Dell has business talent and seizes business opportunities better than others. Today, personal computers are available in every household and everyone has them. You may think that mankind has been like this since ancient times, but in fact its history is very short.
The computer itself originated during World War II. At first, it was only a professional computer, and there were no popular personal or home computers. In 1977, Apple launched a computer based on a window interface, which greatly improved its usability and facilitated popularization, becoming the first generation of personal computers.
In 1981, IBM also entered the personal computer market and launched the first generation of IBM personal computers. Since IBM is the leader in the computer industry and has always been famous for manufacturing large computers, its entry marked the official stage of personal computers.
At that time, IBM's personal computer business model was to design and manufacture its own personal computers. Some products were sold directly to large corporate customers by its own sales team, but more were sold to individual users of small and medium-sized enterprises through retail channels. However, IBM is too big, with mainframe computers being its main business, and its efforts to promote personal computers are always limited, making it difficult to take care of both.
In contrast, the newly established Compaq Computer Company in 1982 had no historical baggage and was only engaged in the manufacturing and sales of personal computers. It traveled lightly and quickly caught up with 1BM's personal computer sales. Become the boss of the industry.
2. The specific content of "Dell's business model":
Dell assembles products according to customer orders and then ships the products directly to customers. The essence of this model is to put aside the middlemen and retailers of the traditional commercial sales chain, save costs and reduce product prices. There is no ready-made theory for this model, which can be summarized as follows:
1. Production to order: Dell assembles products based on orders placed by customers through the website and phone, which gives customers full freedom to Choose your preferred product configuration. The company orders parts according to the order, without hoarding a large number of parts and tying up funds.
2. Establish direct contact with customers: Dell has established direct contact with customers through direct sales, which not only saves the time and cost wasted in selling products through intermediate links, but also enables a more direct and better understanding of customer needs and cultivate a stable customer base.
3. Efficient processes reduce costs: Dell has greatly reduced production costs by establishing a super-efficient supply chain and production process management.
4. Product technology standardization: Most of the technology products operated by Dell are standardized and mature products, so the company can always share with customers the latest results achieved by massive technology investment and research and development in relevant industries.
5. Low cost, high efficiency and good service
Low cost has always been Dell's survival rule and the core of the "Dell model", and low cost must be achieved through high efficiency. Dell's production and sales processes are known for their precise management, smooth flow and ultra-high efficiency, effectively controlling costs to a minimum.
Striving to streamline is Dell’s main approach to improving efficiency. The company breaks down the telephone sales process into eight simple steps. Its automatic production line operates around the clock. Parts are sent in from one end of the production line, and in less than two hours, they are turned into finished products from the other end, and then shipped directly to the customer service center.
Dell holds 550 patents in streamlining processes. Analysts generally believe that these patents are the main reason why other companies cannot truly copy the seemingly simple "Dell model."
Extended information:
From the age of 19 to 38, Michael Dell started from a university dormitory and gradually dominated the global PC industry - but he did not patrol the country for 3 years. How could he? Afraid? In April 2007, when the media asked about the plan to reshape the company in Shanghai, Michael Dell was so confident that he was almost tough: "If you don't believe it, come see me again in 18 months. By then, Dell will have undergone major changes in many aspects!"
As of October 2008, the appointment deadline has arrived. What is the result? The good news is that Dell's sales are back on track. In the first fiscal quarter of 2008, its revenue increased by 21.6%. In the second fiscal quarter of 2008, sales increased again by 11%.
But there seems to be more bad news. It has still not regained the top market share position it gave up two years ago from HP, and people even saw that it needed to give up profits in order to gain market share. In the second fiscal quarter of this year, its net profit fell by 17%. The fastest-growing personal consumer business only accounts for 20% of Dell's total revenue.
Even Dell himself compromised on the situation. When he was interviewed by the media again in mid-2008, he seemed to have become much more cautious: "Can Dell be completely revived in my hands? I think this is not a question that I should answer. It should be answered by bystanders."