What are Dell's success factors and challenges?

The key to Dell's success lies in his attention to problems-improving delivery time, reducing operating costs and providing good customer service, rather than relying on the establishment of new markets.

The specific content of "dell model"

Dell assembles products according to customers' orders and sends them directly to customers. The essence of this model is to abandon the middlemen and retailers in the traditional commercial sales chain, save costs and reduce product prices. In addition to direct sales, Dell was founded mainly to recognize the opportunity to further subdivide and split the computer value chain, and to focus on becoming a company that assembles and sells computers. So Dell is not a real computer manufacturer, but a computer assembler. Dell attracts a large number of valuable technical customers through fast delivery, low price and customer orientation, and makes them become loyal users of Dell, and then maintains the' profit zone' by constantly meeting the changing needs of high-end users.

There is no ready-made theory for this model, and it has the following characteristics:

-Make-to-order: Dell assembles products according to orders placed by customers through websites and telephones, which gives customers full freedom to choose their favorite product configurations. The company orders accessories according to the order, without hoarding a large number of accessories and occupying funds.

-Establish direct contact with customers: Dell establishes direct contact with customers through direct sales, which not only saves the time and cost wasted in selling products through intermediate links, but also can understand customers' needs more directly and better and cultivate a stable customer base.

-Efficient processes to reduce costs: Dell has greatly reduced production costs by establishing ultra-efficient supply chain and production process management.

-Standardization of product technology: Most of Dell's technical products are standardized and mature products, so the company can always share a lot of technical investment and the latest achievements of R&D in related industries with customers.

Low cost+high efficiency+excellent service

Low cost has always been the survival law of Dell and the core of' dell model'. Low cost must be achieved through high efficiency. Dell's production and sales process is famous for its precise management, smooth flow and super efficiency, which effectively controls the cost to the lowest level.

Simplicity is the main way for Dell to improve efficiency. The company divides the telemarketing process into eight simple steps. Its automatic production line runs around the clock. Accessories come in from one end of the production line, become finished products in less than two hours, go out from the other end, and then be directly transported to the customer service center. Dell has 550 patents to simplify this process. Analysts generally believe that these patents are the main reason why other companies can't really copy the seemingly simple dell model.