After reviewing these 3 topics which is prepared by our lecturer, i found that Dell.Inc, which is one of the big name in E-Commerce, are also strengthening their blick-and-mortar business model.
I was only recognized Dell after i graduated from secondary school. As i know, Dell.Inc is a electronic product such as desktop, laptops, monitor,pda manufacturer and seller. They build their business basis via Internet, which called E-Commerce. After these, I have further study about Information Technology knowledge which is applicable into real world business.Once again, I study much more about Dell. I studied that Dell is sustaining their competitive advantages by using low cost strategy, which they doing their main transaction via Internet, a Business-to-Consumer model. They are cost leadership in the industry compare with its competitors because they save a lot of cost on physical outlets, chain stall and more.
But now, Dell are also expanding their business in physical store. Is that meaning that Online Business are no longer profitable ? Or Dell's management feel that doing business via physical store will boost up their sales in these highly inflation period ?In my opinion, Dell should construct their physical store without a doubt. Why do i say so ? Let us further discuss about this:
1. For those which is adopting computer technology, they might found that it was difficult to locate and understand Dell's transaction method or even their product. If there was a physical point of purchase, that will be ease for the consumer as they can feel the product and the services by the mechant.
2.There are several agent or company that are doing reseller of Dell's laptop.I am not very sure about whether they are authorized, but i feel that why don't Dell do it their own rather than setting up such more intermediaries to decrease their profit ?
3.Comparing with other competitor which were setting up their Physical store such as Sony Vaio, HP, or even Apple Mac, Dell are losing in the point of Impulse Purchase. When the consumer are making their decision of purchase, they will possibly go to the market and searching for more information to conclude their sales. In these step, they will usually looking for other alternative or another better choice for their final decision. Dell's laptop are seldom can be found or displayed in the store. Hence, the ordinary Dell's buyer might switch to its competitor due to the persuasive service or promotion by the store.
Prepared by Jennifer.
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