Dell Strategy and Quality

STRATEGY
Dell’s business strategy is based on a system of just-in-time inventory, mass customization, and exceptional customer service.   Dell is able to cut costs by using just-in-time inventory, give consumers choices when are they building their computer by utilizing mass customization, and convince consumers to return to Dell by providing exceptional customer service.
Dell is a strong believer in just-in-time inventory and mass customization, which they refer to as the “direct model.”   The direct model is based on listening to the customer, responding to the customer, and delivering what the customer wants when they want it.   The direct model is based on direct selling without any retail selling.   You will not find any of Dell’s computers at Fry’s, Best Buy, or anywhere else.   Many of Dell’s competitors have to guess what the customer will think is popular, but not Dell.   The direct model allows Dell to build a computer after the customer has already placed the order.   By developing and building only the systems that customers want when they want them, they almost eliminate the costs associated with buying too many components, having to store them, and then selling the surplus at a loss.   In 1999, Dell was storing only six days of inventory.   This enables them to save time and money and allows them to pass the savings onto the customer.   Dell has basically eliminated the middleman and it has proven to be the most effective way to sell computers.
Dell has always sold their computers directly, but the Internet greatly enhanced the direct model.   Originally, Dell took orders over the phone, then face-to-face selling for their larger clients, and since 1996 they have been selling online.   They launched Dell.com in 1994, but at that time, it was simply a technical support site for early adopters of the Internet.   Shortly after the launch of Dell.com, Dell realized that the Internet was a perfect extension of the direct model and they implemented an online...