The key to Dell's success lies in his focus on problems-improving delivery times, reducing operating costs, and providing good customer service, rather than relying on the establishment of new markets.
The specific content of the 'Dell 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. In addition to direct sales, Dell's creation mainly recognized the opportunity to further segment and spin off the computer value chain, focusing on becoming a company that 'assembles and sells computers', so Dell is not a real computer manufacturer, but A computer assembler. Through fast delivery, low prices and customer orientation, Dell has attracted a large number of valuable and technology-savvy customers, making them loyal users of Dell, and then maintained its 'profit zone' by continuously meeting the changing needs of high-end users. .
There is no ready-made theory for this model, which can be summarized as follows:
——Make-to-order: Dell assembles products based on orders placed by customers through the website and phone. Give customers full freedom to choose their favorite product configuration. The company orders parts according to the order, without hoarding a large number of parts and tying up funds.
——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 allows for a more direct and better understanding of customers. demand and cultivate a stable customer base.
——Efficient processes reduce costs: Dell has greatly reduced production costs by establishing a super-efficient supply chain and production process management.
——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.
Low cost + high efficiency + 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'.