A) Customers Relationship Management (CRM)
Customers Relationship Managements used to build up and maintain a good relationship with customers. CRM business model used by Dell is direct business model, where the computer systems are custom-built based on customers’ specifications and services are tailored to customers’ needs. Dell is using CRM system to contact customers directly and capturing as much information as possible. Dell’s CRM system is mainly used by Marketing, Finance and Manufacturing Department. It facility by 3 types of software which is “Hotlink”, marketing automation software, “Premier Page”, custom designed Web pages containing purchase data, and “Proclarity”: Hotlink Hotlink to monitoring customer and market trends which can effective targeting and communication on real time. Premier Page Dell get closer with its large customer by using “Premier Pages” which is a paperless ordering process for configuration, ordering, services, support, and customized PCs according to customer’s need. Proclarity “ProClarity” have the deeply analytical abilities which able to highlighted and resulting the positive and negative of business areas and also break down the sale by region. Management team used “PloClarity” to measure the company’s trend and successes, access customer’s demographic information, sales history and trade relationship. Sales team used to track activity within accounts, and take action on the lapsed quotes while marketing department used to track customer activity, product sales, and marketing mixes.
Dell formed website (dell.com) to provide products information, technical support and others service to customers. Customers can purchase computer peripherals, software, and others products from the website. Dell Company has also display out the firm’s information for example annual reports, stock value, and financial figures. By 1996, Dell started e-commerce for personal computers and the target market is mainly on the catalog customers. Customers can choose and deploy a model, acquire a price quote, and buy the personal computers through online or by phone. The customer will received a confirmation e-mail after they have make ordering and able to check the ordering progress through Dell’s order status system. Dell’s success using E-commerce to coordinates with suppliers, logistics providers, and distributors of third-party products, system integrators, and service providers.
C) Business strategy
As mentioned above, the bargaining power of Dell’s customers, especially its corporate ones is relatively high. Therefore, it is of Dell’s core interest to build up a distinct business strategy that helps maintain its sustainability, customers’ satisfaction and loyalty while alter the competitive force from its powerful customers. Dell’scompany’s business strategy must illustrate the company’s values which differentiate with competitors. Dell chose for itself a distinctive way to serve customers: business based on a direct sales and build-to-order model. Unlike other PC makers who include retailers, resellers and other bodies in their marketing and sales, Dell uses its website www.dell.com as one of the main channel to sell products directly to customers and provide products based on customer’s customized orders.
D) Organizational strategy
Dell’s organizational structure is called value web since it operates its ordering system online. Dell’s structure allows for it to concentrate more on certain operating process and outsourcing the rest. Dell’s structure includes an extensive relationship with external partners to meet manufacturing orders as well as being able to provide quality customer service. Dell uses this organizational structure to be able to create novel products and services for the their customers. This model has allowed Dell to maintain and grow its market share versus competitors over the years.
E) Online System Online Sale Strategic use of IS enables
Dell to sell its products online at the website www.dell.com. This sales channel helps reduce retailing and distributing related costs which then result in lower prices and higher quality for customers. This sales model is also suitable with its main targeted customers – large-volume buyers – who expect good price and quality, convenience, fast service and tailored ordering. Online Ordering Customers can log in to Dell website to order the product with their own customized configurations. These Premier Pages are used for configuration, ordering and technical services, which are all tailored to the customer’s needs. Online Service Service and technical support in a PC company requires high cost and a lot of employees. However, in a competitive market, where products are, in many cases, standardized or undifferentiated, service and support quality is fundamental for companies to make a difference. Customers’ history and profile are of great importance for Dell to understand its customers’ needs and to provide better and more effective service and support. Therefore, Dell provides customers with personal support sites where information about the products and their history conditions are kept and processed. This strategy is regarded by Dell as “virtual integration” of which both customers and technicians have access to the same information and tools. Dell provides online support for its customers at www.support.dell.com. Dell support is customized to better serve different segments of customers (home users, small businesses and enterprise IT). Customers are offered with various support tools in terms of the products, order, warranty, resolution assistant, file library (drivers, software and other updates).