What are the reasons for Dell's success

Dell was still in a state of loss in previous years and has now developed into the world's second-largest computer supplier. Dell's success certainly has its reasons. Here is what I brought about Dell's success. Welcome to read!

After the second quarter of 1999, Dell has been the first Compaq company in the world( http://www.compaq.com )It has become the PC supplier with the largest sales volume in the United States, and is aggressively approaching the throne with the largest sales volume of PCs in the world. Dell pioneered the technical support hotline and made it the industry standard. Technical support engineers proficient in multiple languages in the "Asia Pacific Customer Center" can solve the technical problems of more than 75% of incoming customers by telephone. All this is possible because each system shipped by Dell has a product number associated with its detailed technical specifications.

One of Dell's most important investments in the world is the Internet. Its Asia Pacific website is www.dell.com COM / AP is currently available in four languages, including Chinese, English, Korean and Japanese, and supports sites in 16 countries in the Asia Pacific region.

Dell saw the advantages of the Internet and began to study how to use the Internet before its peers in the industry realized this. As early as July 1996, Dell customers were able to directly configure and order computers through the company's website. For six months, Dell sold $1 million worth of computer products through the Internet every day. It doubled in a few months. With this innovative marketing mode of producing according to orders and direct selling, Dell will eliminate the high price difference between agents and retailers commonly seen in traditional channels. At the same time, Dell's inventory cost will be greatly reduced. Compared with its main competitors who rely on traditional sales, Dell's computers have a price advantage of 10% - 15%.

Dell's online direct selling site also provides technical support and ordering information, including downloading software directly from the site. The site answers 120000 technical questions a week. 90% of Dell's sales revenue comes from enterprises and 10% from ordinary customers. However, 90% of the online sales revenue comes from small and medium-sized enterprises and ordinary individual users. The major customers of Dell mainly query product information, order and technical help through the website, and do not order directly from the Internet. In order to attract large customers to purchase and serve online, Dell has set up a special "customer home page" to provide personalized services for large customers. Customers only need to purchase directly through the customer home page. These customers also reduce procurement costs through online direct procurement. For example, MCI company, a major customer of Dell, cooperates with Dell for unified procurement. The procurement cost of MCI company is reduced by about 15%, and the procurement cycle of the company is shortened from 4-6 weeks to less than 24 hours.

From 1984 to 1987, the company was born Mr. Dell founded PC Co., Ltd. with $1000 at the age of 19. We hope to realize the change of design, manufacturing and sales technology.

From 1988 to 1991, it went public and entered the global market, breaking through its IPO and expanding its operation and product portfolio In order to better serve customers.

Unprecedented growth was achieved in 1992-1995. Dell's rocket like growth rate makes it one of the top five computer manufacturers in the world, and focuses on the network server market that has not yet been set foot by enterprises.

From 1996 to 1999, it won the world and led the network. Dell rapidly expanded its global operations and the company began to enter online sales. And set a benchmark for global e-commerce.

From 2000 to 2004, it was extended to other fields other than PC. Dell is the world's largest computer system manufacturer, and continues to develop, introducing peripheral equipment products and products suitable for data centers.

Set benchmarks for social and sustainable business development in 2005-2008. Dell optimizes its business strategy to meet customers' end-to-end it needs. At the same time, social networking sites are adopted and free product recycling services are provided.

In 2009, the new Dell is full of vitality. By investing heavily in intellectual property and R & D, Dell has enhanced its solution portfolio and capabilities.

On September 10, 2015, Dell announced that it would invest US $125 billion in the Chinese market in the next five years. Dell would set up an R & D center and cooperate with Chinese companies in R & D and innovation [3]. Officials said that the investment is expected to contribute about 175 billion US dollars to China's import and export volume and bring 1 million jobs directly or indirectly. Huang CHENHONG, CEO of Dell China, said that $125 billion will be used for R & D and procurement, but does not include investment in the industry.

Positioning

As one of Dell's key strategic markets, the Chinese market performed prominently in the first quarter ended April 30, 2004, with product shipments increasing by 48%.

According to IDC's PC Market Research Report in the fourth quarter of 2003, Dell's PC shipments in China ranked third in the Chinese PC market with an overall share of 7.3%, and Dell's server shipments in the Chinese market ranked second with a market share of 24.1%, further demonstrating China's strategic position in Dell's Asia Pacific and even global business.

Coverage scale

According to their configuration and software requirements, Chinese customers can directly contact each Dell sales representative through 720 toll free phones set up in 258 cities across the country to order personal computers, laptops or server products, or purchase them directly on Dell's website through the Internet.

Dell's on-site service and technical support can directly cover 1923 cities.

Chinese market

"Do as the Romans do" Dell Computer abandons zero inventory

Dell "claims" to bring advanced sales methods such as direct selling, on-demand customization and zero inventory into China, but in actual operation, it "creatively" adopts the same channel distribution method as other domestic IT manufacturers, which is a semi open secret in the IT industry. In fact, more than 40% of Dell's products reach consumers through distribution - of course, Dell officials, who are famous for their unique sales model, have never acknowledged this.

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