Dell Computer Company¡¦S Direct Business Model
In traditional digital equipment of the world, they have no choice but to build massive structures to produce everything a computer needed. As the industry grew, more specialized companies developed to produce specific components. It¡¦s a pretty simple strategy, but at that time it went against the dominant.
In Traditional Business Model we can use following flows to describe the relationship beyond different partners and the information flow and physical goods also follow the same route.
Ü Suppliers > Manufacturer > Distributors > Customers
In Dell Business Model
The direct model has allowed Dell to leverage their relationships with both suppliers and customers to such an extent that the company is being virtually integrated. That allows they focus on where they add value and build a much larger firm much more quickly. They focus on how we can coordinate operation activities to create the most value for customers.
The whole idea behind virtual integration is that it......
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