A success story of E-commerce and its causes
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
The history and evolution of E-commerce
It was launched in 1994, Dell.com was the first company to record a million dollars in online sales by the end of 1997. The company’s unique strategy of selling goods over the World Wide Web with no retail outlets and no middlemen has been admired by a lot of customers and imitated by a great number of E-commerce businesses.
Useful links :
A failure story of E-commerce and its causes
Why Boo.com fail as an E-tail on Fashion? This is because Boo.com fails to identify the problems and mismanagement from the beginning went start using this e-commerce. Furthermore, it is also due to bad planning, poor financial control, bad marketing and poor web design. For example, boo.com site is very slow in order to load their page and this has cause majority customer or consumer to wait for minutes to display a product information. The design is also complicated and should display in a fixed size window, this has cause inadequate information is display in other size window page.
Besides, another example of e-commerce failure is eToy.com. EToy.com is also one of the top 10 dot-com flops in a retail website that sells toys via electronic commerce. EToys.com was launched in October 1997, but the company went bankrupt towards the end of the boom on 22 December 2008 and after that it was acquired by Toys “R” Us in February 2009.
Why was eToys.com fail as a retail on selling toys? The reason is the same as boo.com because almost 62 percent of dot-coms is lacked financial skills and 50 percent had little experience with marketing. The other reason is poor customer service , expensive advertising and unable to meet their customer needs. For instance, late in delivery the products to the right location during holiday season. On top,eToy is failure to make any development on the innovation aspect, failure to adjust the compensation plan and failure to budget because this strategies and plan currently constituted in most businesses work against Internet success.
Useful link:
http://www.cnet.com/1990-11136_1-6278387-1.htmlww.cnet.com/1990-11136_1-6278387-1.html http://www.etoys.com/home/index.jspw.etoys.com/home/index.jsp
http://www.boo.com/
http://aglncom.blogspot.com/2008/06/failure-of-etoyscom-in-e-commerce-and_11.html
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