Dell's Direct Model: In Need of Change?
|
Code :BSM0040
|
Region : US
|
||||
 |
 |
 |
 OR |
||
|
Introduction:Dell witnessed stupendous growth in the 1990s, primarily due to its innovative and efficient 'direct to consumer' business model, which eliminated traditional business channels and sold PCs directly to consumers. Dell debuted in the Fortune 500, 1992 list, at the 490th rank, and steadily progressed to reach the 56th position in the Fortune 500, 2000 list. In the year 2001, the company became the world's largest PC manufacturer, based on the number of PCs shipped. After achieving annual revenue of $49 billion in February 2005, Rollins further set a goal of earning $80 billion in annual revenue in the next three to four years. But he failed to articulate a back-up plan in case things did not proceed as premeditated. The PC industry grewat a fast pace after IBM launched its PC in 1981. Many established companies as well as start-ups entered the industry, attracted by its high growth potential. One such start-up, Dell Computer Corporation, entered the market with a radically new business model and changed the industry's paradigmon how business could be conducted. |
|
| For Case Books
Click Here >> For Case eBooks Click Here >> |
|
