The Dell Computer Corporation

Paper Summary:

This paper explains that the Dell Computer Corporation direct model strategy stands out not only because of its elimination of middlemen but also because each computer is custom-designed and made-to-order per the customer's needs. The author points out that the corporation has threatened to undermine years of hard work by industry stalwarts such as IBM and Compaq because most of Dell's competitors manufacture machines to suit the needs of their retailers, resellers or distributors who in turn interacted with customers. The paper concludes that, rather than try to imitate Dell's model, companies with well-established names like IBM, HP/Compaq and Gateway should continue to thrive in their sectors while at the same time coveting more corporate accounts, creating more custom-made computers, easing away from the assembly line and offering the personalized PC purchasing experience for which Dell has become so famous.

From the Paper:

"Software is installed in a separate stage of the manufacturing process, and Dell offers specialized services for companies that require the installation of proprietary software. Companies like HP/Compaq would do well to hone the manufacturing process and shift away from the assembly-line. Customized "cell" production makes for a more stable system that is also tailored to the needs of the user. Also, when an order is placed, a list of parts is compiled and sent to the manufacturing plant located closest to the consumer."

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