A success story of E-commerce and its causes

E-commerce sometimes also called as e-business. E-commerce is a type of large business model that enables those users to conduct their business over an electronic network, especially throughout the internet.

Dell computer company began to redefine itself as the company that “knows how E works” in the early of 2000. From the beginning, Dell Company sells their product and taking orders over phone call and building PCs to the customer’s specifications. But nowadays, Dell has been redefining their business model (direct sales and build-to-order strategy) and converts to the internet. Dell’s website was being created in 1994.

This direct model gave advantage in selling online to Dell Computer Company. Through selling online, Dell did not have to worry about the channel conflict with the resellers and distributors. Other than that, Dell used the internet to link itself more closely to their customers and also suppliers.

Dell Company has provided self-service tools to customers so that they can order online or solve a technical problem through internet. This can help them to save time and cost because even though they did not walk out from their house, they also can get any information such as price quote and catalog about Dell computer and then make order through online or by phone.

Most of Dell’s revenue is come from selling hardware as part of the e-business solution such as storage devices, desktops and laptops. Dell sells their product directly to the end user, therefore cutting down the distributors and resellers such expenses. In year 1995, Dell was shown a major improvement in leading the operational measures such as inventory turnover.

Dell computer company now using the internet and e-commerce to create a closer relationships with their customer in order to improve the effectiveness and efficiency of their company.

http://wiki.answers.com/Q/ What_is_the_meaning_of_e-commerce
http://www.crito.uci.edu/giT/publications /pdf/ dell_ecom_case_6-13-01.pdf