Dell's adoptation of the direct model has huge competitive advantage to the company to become successful in both the US and overseas markets. Dell's Direct Sales Model .

1. The Pros and Cons for Direct Sales Distribution Model. External factor 11 5.0. Problems of Dell direct sales model 9 4.1.

This was hugely different for the competitors who were making the products on bulk and selling for the mass. The model improved the operations process as it allows clients to make orders of what they want. It receives its money prior to having to pay its suppliers for the components (Birgit, Jespersen and Tage 2005, p.112). The main features of Dell direct sale model 5 3.0. Now, as long as most of the costs (for you and your competitors) lie on the production side, you’re golden. In addition to this the company was providing 24/7 customer service. Problems of Dell direct sales model Once carry the world before “Dell direct sales model”, now on the market they has suffered a strong questioning, Dell direct sales model gradually revealed many problems. SWOT Analysis 6 3.1 strength 7 3.2.

The direct sales model provides a cost advantage on the production side, in other words, but brings a cost disadvantage on the support side. What Are The Main Disadvantages Of Dell S Direct Sales Model Case 11.1: The direct sales model or a ‘dual system’ model : Dell’s distribution strategy in China. Internal factors 9 4.2. Learn More. Recommendation 12 6.0. Home Essays Dell's Direct Sales Model. Opportunity 8 3.4. Reference 14 Hartline, Ferrell. Threat 9 4.0. The direct sales model enables Dell to operate on negative cash conversion cycle. If, however, the balance of costs shifts toward the support side, you’re in trouble. As I stated in my last blog, it seems if corporate America regularly changes their sales distribution methods with the latest trend orienting towards indirect versus direct distribution. I suggested there are a number of issues to consider before ones changes or shifts their distribution model. Get your 100% original paper on any topic done in as little as 3 hours. Dell successfully controls its own distribution, bypassing conventional distribution channels and selling directly to consumers. For many people, Dell Computers' biggest advantage is also their biggest disadvantage: Dell Computers doesn't spend money on expensive shops and sales staff. Weakness 8 3.3. Dell’s main FSA is its well designed and integrated supply chain based on its direct sales model.