Electronic Business and Commerce

Class 6


Topic:
The Direct Model
Class Plan:

In the session, we look at Dell Computer and its Direct Model.  We try to understand what makes it "tick" - or break.
Required Readings:
Additional Readings:
Study Questions:
    1. How does Dell’s business model reflect the changes that took place in the computer industry over time?
    2. What can you say about Dell's value discipline(s)? 
    3. What is the Dell Direct Model? Why has it been successful? What are the key conditions for its success?
    4. What are the key differences between transaction and relationship customers? 
    5. What should Dell's strategy be going into the future? Be prepared to justify your reasoning.