Introduction:
The paper is based on the video clip which was showing the direct sales model of Dell Company. It showed how Dell manufactures the computers and considers its direct sales model as the key success factor. The company founder would sell the computers after making them customized as per the customers during his sophomore years in college. It led to the making of Dell Company, which has been successfully using the same approach in its supply chain and logistics making success possible for Dell.
The video showed how business had achieved success by using a direct sales approach. Other businesses have tried to imitate the success of Dell; however, no one could do it as effectively. One can witness that the achievement of Dell lies in the direct contact to its customers, having the benefit of knowledge of coming uptrends, and by providing a customized customer experience. With a supply chain of manufacturing, partners, and customers via the application of Just in Time model, Dell has achieved success by focusing on what they do best. The video shows that changing with time is important; however, it should only be done if changing is a better option for a company (MacNeil/Lehrer Productions, 1999).
Compare Dell’s supply chain and logistics innovations with the competitive responses from competitors such as the Apple Store and others.
Dell:
Dell Company has the JIT or Just in time facilities which provide its sales products direct to the customers. These products are built to order and have mass customization. The company manufactures and runs its plant by buying every individual part from various partners or suppliers and strives to have the virtual incorporation of its partners, manufacturing process and its customers. The products are attractive to the market segments which are looking for high performance and reasonably priced products.
It is possible only for a company having a large scale. Therefore, the activities can be operated at the lowest cost and offer reasonable prices. The company brings the latest technology to the customers through direct sales, which are accompanied by a feedback system, aiding the assistance in providing the direction for demand trends and minimizing the risk. The Research Department of Dell is moving forward for process improvement and aiding in the quality control process to bring architectural innovation. The company is also restricted in assistance of its suppliers with the research of Dell to add these in improving their technology of the components (Nuttall, 2007).
Apple:
Apple Inc, on the contrary, develops and manufactures consumer-friendly, high-quality products having high aesthetic value. This type of product targets the segment of the market, which is interested in paying the premium price in exchange for innovative and unique goods and user experience. The retail stores of Apple, therefore, offer pre-purchase user experience for its products. The company has used its economies of scale advantage and has outsourced the manufacturing to its contractors. It requires it to keep its contractors in tight control and gains larger discounts and advantages in exchange for the volume of the orders.
The company in comparison to Dell has not rolled out the technological advancement in its components. Nevertheless, Apple has all the potential to offer a high-quality product having networking and media features. Apple has a very strong demand forecast model. It can predict the demand for its stores and consequently sketch its production schedule accordingly. The company spends a large portion on research and has its entire efforts focused on innovation.
Discuss the emerging supply chain and logistics management factors shown in the video that was already negatively affecting large computer chain stores.
The factors which were shown in the video that negat8vel affected the chain stores of computers were online shopping and internet technology. The new online shopping trend has given liberty and comfort to consumers. Now consumers can shop while sitting on their couch having their shopping delivered at their doorsteps. Other factors include the specialized retail stores made by competitors for selling their computers. It is evident that some users consider hands-on experience important in the purchase of expensive products like a computer. Apple has made its stores which provide pre-purchase experience giving full liberty to the consumer to have full hands-on experience.
In what ways may market research have helped prevent these large technology businesses from failing?
Market research helps in the evaluation of the available organizational practices, the efficiency of the sales, service quality, process controls. Furthermore, market research also aids in the identification of the gap areas in which work can be done. These can be a new business idea or having a better marketing campaign for solutions to technical problems with the full market analysis. Companies aids from market research to better target the interests of their customer by aligning their business activities along with it.
Having Demand-driven planning:
The better the forecasting is, the better the options of success the company has as it is better planned and market research aids in it. The best forecast and the planning of the equipment make sure that the company has an efficient reaction planned for any risks. These risks can be any ranging from suppliers having the loss, natural disasters, and supplier running short on order, political disruption or anything affecting production. Having an effective demand-driven planning as dependent on the real-time demand shaping allows the company to regulate its pricing strategies and develop its promotional strategies by the demand. And this is only possible by doing market research.
Formation of an adaptive supply chain
The supply chain requires the system to be dynamic and continuous to make it effective. It needs the supply chain to respond to the changes in the market quickly. Reduction of or getting rid of the shocks in the supply chain enables visibility. The more improved coordination is in the value chain, the fastest decision making happens along with better support and analytics. Market research enables the identification of the loopholes in the supply chain as well.
Conclusion:
In the end, it can be concluded in these words that the video showed how business has excelled in the market by using a direct sales approach. By looking at it, we can see that the success lies in the direct link to its customers, having the benefit of knowledge of ground realities, and proving a customized customer experience. Other businesses have long worked hard to replicate the success of Dell; however, no one has done it better than Dell. Having a virtual incorporated supply chain of manufacturing, partners, and customers through the application of Just in Time model is a classic example of how businesses can achieve success by focusing on what they do best. Even with all the disruptive technologies, and the arrival of internet shopping, Dell is still standing there with its direct sales approach. The video shows that changing with time is important; however, it should only be done if changing is a better option for a company.
References:
MacNeil/Lehrer Productions. (1999). Your computer, your way: Dell and the direct. Retrieved from MacNeil/Lehrer Productions: https://login.libraryresources.columbiasouthern.edu/menu
Nuttall, C. (2007, April). Dell business model ‘not a religion’. Retrieved from https://www.ft.com/content/b22c375a-f512-11db-b748-000b5df10621.
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