Cooperating Research For Dell Direct And Distribution Business Model

When We are talking about direct business model,Dell is most famous to the customers.The competition core is direct business model to customize and virtualization manufacture.By internet and telephone,Dell sells the products to customers directly,bypassing the distributors or retailers to reduce cost and meet customer expectation.What is more,the price of products are lower than the competitor with about 7～10%,remaining in the higher competition.In the mature products and without quality concerns,price is the key to win the competition.Direct model is providing special value to customers and reduce customer cost.In virtualization manufacture,the most benefit is zero inventory.With zero inventory and batch purchase from the suppliers,the company saves a lot of operation cost and eventually reduce the price to customers.Because of Dell,the standardization with low cost is offered to customers.The entire industry is altering accompanying with Dell.Obviously Dell success is not product,but business model.As Michael Dell said,"Direct model is an innovation,not a religion".According to the IDC sales reporting,it shows that Dell revenue is decreasing for the bottleneck of direct model.So I select this topic to do the research.In the article,total 4 chapters.Firstly,indroduce Dell history and the current market situation,then come up with the issue that Dell direct model is suffering from bottleneck.Meanwhile,do the further research in business model theory.Senondly,analyze the competition advantage of Dell direct model and the negative situation of direct model currently.Thirdly do the further research for concurrent direct model and distribution model at Dell.How to leverage direct model and distribution model.Lastly,summarize the questions and come up with the constructive solution.