Direct to Customer Interaction through eBusiness
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Transcript of Direct to Customer Interaction through eBusiness
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Dealing Directly with Customers Bypassing of traditional sales and
distribution channels to reach consumers directly
Michael Dell
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Dell Inc.
Built on a vision of customer responsive order fulfillment.
Gives customers the ability to order custom configurations of PCs online
This vision requires a flexible supply chain management. The frictionless flow of information through the supply chain is central part of Dell’s vision.
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Dell Inc.
Uses direct sales approach with no middleman.
All customer service is done via the web helping to cut costs.
Receives money before product is shipped.
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Briefly explain the differences between the “make and sell” and “sense and respond” approaches in business.
(25 Marks)
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2014 -4. (a) Briefly explain the differences between the “make and sell” and “sense and respond” approaches in business. (25 Marks)Make and Sell – The company will produce the goods and sell it to the customers
Sense and Respond – identify the customers and their patterns and sense what they want and produce it to them before hand
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Dell Computer Company uses a Direct-to-Customer approach in doing business where there are no middlemen. The company also makes-to-order rather than sell pre-manufactured products. Briefly explain five (5) advantages of this approach.
(20 Marks)
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2013 -4. (d) Dell Computer Company uses a Direct-to-Customer approach in doing business where there are no middlemen. The company also makes-to-order rather than sell pre-manufactured products. Briefly explain five (5) advantages of this approach.
(20 Marks) • Can sell at lower prices • Build to customer order • Receive payment earlier • Speed up new product release cycles • Use customer data to provide customized
value added service
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2012 -4. a) Briefly explain the validity of the e-Business Models in today’s context and the differences in old and new Business strategies.
(20 Marks)
2009 -4. (b) (30 Marks)2010 -4. (a) (20 Marks)
Compare and contrast the traditional business models and eBusiness models intoday’s business environment.
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Compare and contrast the two concepts Mass Production and Mass Customization.Explain how eBusiness can help to implement these concepts.
(30 Marks)
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Mass customization
• Differentiating a product for a specific customer
• Possible to add and/or change functionalities of a core product or to build fully custom enclosures from scratch
2010 -2. b) Compare and contrast the two concepts Mass Production and Mass Customization.Explain how eBusiness can help to implement these concepts.
(30 Marks)
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Mass production (Traditional Factory Approach)
• Production of large amounts of standardized products
• Assembly line production (automacy)• Mass production is capital intensive and
energy intensive • Machine use is high proportion to workers• Mass production line is expensive as usage
of robots• The probability of human error and
variation is also reduced because of machine use
• A reduction in labor costs• Inflexible because it is difficult to alter a
design or production process after a production line is implemented