Monday, March 20, 2006

Dell Corporation

My first blog ever!! Am not sure what to write about. In any case, I think I want to talk about Dell Corporation. I think it is one of the most unique corporations ever. Its structure, business model and the like are unique. This corporation introduced the concept of direct marketing. Its owner Michael Dell (plz. excuse the spelling), started the corporation in 1984, which is a year after I was born. He totally removed the intermediaries from his business. The corporation sold directly to its customers. In this way it was able to develop a healthy relationship with its customers. This is how the concept of direct marketing came along. In addition, it was able to focus and specialize. Thus came the concept of mass customization. Being able to satisfy individual customer demand. For instance, if a customer wants a silver color laptop with certain specifications, Dell will be able to provide them. I think it totally amazing and a truely unique concept.

It also employs virtual and vertical integration. Its organization structure is now called Value Web. This means that the competition is expected to be between networks as opposed to individual companies. Its all about networking!!

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