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Case Study

Dell's direct model: Everything to do with information

By Donald A. Marchand, Rebecca Chung and William J. Kettinger

31 pages

November 2003

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Reference: IMD-3-1149

Since its incorporation, Dell has developed a business model, Direct Model, that builds direct relationship with its customers. Over the years, Dell has become one of the leaders in the global PC market and is expanding into other markets like printers and personal digital assistants. The Direct Model helps Dell build a number of competitive advantages such as customer focus and segmentation, brand management in commodity distribution, build-to-order manufacturing, supplier management, and quick cash conversion. The case reveals that it was actually the knowledge creation and information flow among its employees, customers and suppliers–enabled by the Direct Model–that helped Dell build the business capabilities required to respond to environmental changes. The case also raises the question of how Dell can employ and improve its capabilities of managing and using information and knowledge to achieve its aggressive goal of doubling its fiscal year 2002 annual revenue of $31 billion within five years.

Keywords

Information Orientation, Information Technology, Information Usage, Computer

Settings

World/global
1984 -2003

Type

Published Sources

Available Languages

English

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