Sunday, June 15, 2008

An Example of an E-commerce success and its causes


Dell is a multinational company base in round rock, Texas which is develop manufactures, sell, and support personal computers , servers , data stores devices, network switches, software, televisions, computer peripherals, and other technology-related products. Dell is also defined as an E-commerce company.Dell was creating its first wed site in 1994 and moving many of its business activities to the internet ahead of its competitors. Because of Dell is an direct model sell via online,i so it is an competitive advantage for Dell company in selling online.Dell also its a build-to-order manufacturing processes, its make a convenience to their customers and more easy to customer to order the products online.
It is not an easy task to build a goodwill and trust towards customer via E-Commerce. Consumer are facing too much internet unsecurity, fraud, phising, privacy concern and also legal restriction. Those factors are critical issue to deny E-Commerce growth dramatically, which is technological and non-technological limitation.

Dell has successfully build their reputation while dealing with customer via B2C Model. They overcome all the limitation by providing a price cut compare with their competitor, but providing same quality or even higher quality than their competitior. These quality not only product quality but also service quality. Service is one big issue when company dealing with customer, customer service are very difficult to be made and accept by customer.Unlike others, Dell providing high security trading process for customer, which avoid any privacy issue for customer. They also provide various kind of payment model which are verified as safe by other parties.

Dell routes technical support queries according to component-type and to the level of support purchased. Dell Inc brands its service agreement at five levels for their business customers:
  1. Basic support provides business-hours telephone support and next business-day on-site support.

  2. Silver support provides 24×7 telephone support and 4-hour on-site support after telephone-based troubleshooting.

  3. Gold support provides additional benefits over and above Silver support, including: customer-declared severity; priority access to support; expedited escalation of support; 4-hour on-site support in parallel with telephone-support.
  4. Platinum Plus support provides additional benefits to Gold Support, including: performance benchmarking; real-time tracking; custom planning and reporting; a dedicated technical account-manager.

  5. 2-hour on-site support, offered in some cities: mostly limited to major metropolitan areas.

Let's make a small summary over these, Dell Inc can make a great sucess in their E-Commerce model are based on a strong service foundation and a favourable price advantage over their competitors. Dell fulfill the 3 element which are desired by customer: Cost( Low cost), Convenience (Easier than traditional shopping), and Control (Customer can make their own decision without hearing any "expert opinion") and it leads to its sucess in this highly competitive market.


Reference:
  1. http://www.inc.com/articles/1999/09/15567.html
  2. http://en.wikipedia.org/wiki/Dell
  3. http://thlee.creativity.edu.tw/course/mis92_1/dell.pdf

Prepared by Lew Pei Ean

All right reservced by EnT02 Group Rui,Ean and Agu™

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