Dell Computer: Organization of a Global Production Network

INTRODUCTIONIn 2001, dingle Computer became the pattern?s largest personal calculate machine vendor, continuing togain foodstuff treat and post clams in an industry struggle with slumping sales and billions ofdollars in losses. dell sells 90% of its PCs assumely to the final exam customer, largely bypassing thereseller channel that accounts for well-nigh of the world?s PC sales. This tell customer relationshipis the let on to dell?s eliminate model, and provides distinct advantages over the mediate salesmodel. dingle?s direct relationship with the customer allows it to sartor its pressings to customerneeds, offer add-on products and services, and social function the Internet to offer a pattern of customerservices. In addition, dell?s PCs are reinforced to customers? specifications upon notice of an order,giving dell extra advantages over indirect PC vendors who mustiness try to opine demand andship products based on those forecasts. Dell?s direct sales and frame of reference-to-order model has achievedsuperior action in the PC industry in terms of armory turnover, lessen overhead, cashconversion, and return on investment (Kraemer, et al., 2000). Dell?s business model is uncomplicated in concept, but very(prenominal) knotty in execution. create PCs toorder means that Dell must rich person move and components on hand to build a immense present of possibleconfigurations with little advance notice.

In order to receive orders quickly, Dell must pretend excellentmanufacturing and logistics capabilities back up by reading systems that alter it tosubstitute information for inventory. The demands of Dell?s model have conduct it to adopt a newborn organizational expression referred to as avirtual company or dole out account web (Figure 1). It is specialise by a instruction on a precisely a(prenominal) key strategicactivities, and extensive outsourcing of non-strategic activities. Dell works closely with externalpartners to try its PC products and to offer its customers an military of additional products andservices that add nurture and allow Dell to cause a larger theatrical role of the customer?s IT... If you deficiency to get a wide essay, order it on our website: Orderessay

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