Week3 - sucessful e-commerce and its causes

An example of successful E-Commerce company is Dell Computer. Dell Computer was founded by Michael Dell in 1984, while he was a student at the University. From the beginning, Dell operated on the direct sales model, taking orders over the phone and building PCs to the customers’ specifications. Dell was an early and enthusiastic convert to the Internet, creating its first web site in 1994 and moving many of its business activities to the Internet ahead of its competitors. Dell Computer focused on the relationship with the customer. With its build-to-order model, Dell viewed final assembly as a core competency which was kept in house, but it outsourced components, pre-assembly and logistics. Service and support were also viewed as a key part of relationship selling, so Dell kept control of the function but outsourced some service delivery functions to business partners. IT could allow Dell to achieve coordination of the system and keep its control over the customer relationship. To do so, Dell focused on using IT and the Internet to improve internal processes such as ordering, assembly, delivery and support, to coordinate its broader value web, and to enhance the customer relationship. Thus, Dell’s ability to extend its successful IT and Internet-enabled business model beyond its core market of large U.S.