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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.
Dell (DELL), one of the world’s largest manufacturers of personal computers, is known for inventing and pioneering the “Dell Direct Model,” which fueled its astronomical growth from a dorm-room...
TechDirect Key Benefits. Drive better end-user experience and control with AI-driven support and automation. Actionable insights and robust self-service in an intuitive, unified experience. Tailored views, dashboards and on-demand reporting for faster issue resolution.
With the "direct model" initiative achieving preliminary success in both domestic and international markets, the materialization of Internet technology played a major role in sustaining the rapid growth of the company by allowing Dell to get even closer to its customers.
Dell’s build-to-order model avoids unsold PCs and value depreciation. In addition, Dell’s direct model and wholesale component purchases further reduce production and distribution costs. This allows him to pass on cost savings in the form of disruptive prices for high quality PCs.