Introduction
For any growing market from any industry, change is essential, especially now with the growth in technology. A change creates room for innovation and growth in the industry as well as the company. However, before implementing any changes in the company, the relevant stakeholders need to decide on whether the company is ready for change or not. This essay is prepared while basing facts on the review of the short video clip known as "Your computer, your way: Dell and the direct sales model." This video clip is produced by MacNeil/Lehrer Productions (Producer) (1999), who is the leading producer. This paper focuses on discussing ways in which Dell's supply chain, as well as logistic innovations, is measured when compared to other computer companies. Additionally, the paper will also consider looking at the reaction of other companies who are its significant competitions, especially on how they view Dell's approach. In other words, every marketing detail about Dell Company will be analyzed deeply. The essay will also address the importance of studying the market as well as the targeted audience and the importance it has on the success of the companies.
1. Compare Dell's supply chain and logistics innovations with the competitive responses from competitors such as the Apple Store and others.
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It has been noted that the history and reputation of Dell Company, especially in terms of sales has dramatically increased over the years. Major competitors such as Apple store have realized that Dell is rising because of its numerous innovations, particularly in their supply chain. Manufacturing and effective distribution strategies on how to sell and market their products is also the reason as to why the company is enjoying the growth in its sales. According to the video clip by MacNeil and Lehrer (1999), Dell is becoming successful because it is critically analyzing and studying the market. Dell noticed that the market is drastically changing in terms of products and services. Therefore Dell made strategic plans in their computer value chain hence taking control of the evolving market trends (Dell Case study, 2011).
Dell has embraced the internet where it is making a direct connection and sales to their customers. The strategy that made this direct relationship possible is direct to customer sale strategy that cuts out the middlemen hence increasing the profit margins (MacNeil & Lehrer, 1999). While Dell was applying this strategy, the other companies were still using the traditional way of Business to Customer Company as a way of selling their computers to the public. This process is usually slow and not very useful, which made the companies make losses when their computers lost value due to extended shelf life. This was happening while better systems were being created (MacNeil & Lehrer, 1999).
In addition to their improvement in the supply chain department, Dell also made their manufacturing process more innovative using modern technology. They left their usual way of assembly and decided to try out new lines of concept. Dell successfully achieved this by creating a manufacturing cell which was comprised of a small group of employees who are harmoniously working together at all times. The group of workers is positioned in a way that they assemble the computer systems in a few minutes, making them reliable. The assembling process usually takes place only when an order has been placed to avoid dead stockpiling up, which would require space (MacNeil & Lehrer, 1999).
2. Discuss the emerging supply chain and logistics management factors shown in the video that was already negatively affecting large computer chain stores.
Technological growth, especially in line with internet growth, has changed how business was traditionally conducted. The computer stores in most parts of the world have had a negative effect, particularly in their chain of supply and logistics management due to internet growth. This is because it has become easy for more and more people to access the internet at any time and place hence making shopping an online trend (MacNeil & Lehrer, 1999). This usage of online as stores and shopping places is more practised by Amazon, which has made shopping easier for clients at the comfort of their homes. This shows that even in the years to come, online shopping will be the most convenient way of shopping for future generations. In fact, shipping and handling payments are now becoming things of the past due to the increased competition (Dell Case study, 2011). Dell has realized the fact that it is not worth it to have a computer sitting on the shelf for weeks where it can just be posted on online stores and have a chance of being exposed to millions of potential buyers. However, some of the companies have not taken this opportunity since they believe that there are those customers who still want to do the traditional kind of shopping. This is a significant risk since they are in the risk of becoming outdated and hence losing a place in the competitive market. Shopping on online platforms gives the customers the chances of inspecting and comparing the product with other companies thus becoming more effective and reliable (Kelly, 2017).
4. In what ways may market research have helped prevent these large technology businesses from failing?
The video clearly shows to what extent technology has impacted the way business has been conducted for the past 10 to 15 years. Internet and improvement in technology at large have been the game changer where it has saved up vast amounts of money for the companies. Usage of internet is cheap and reliable since it can be accessed easily at any time, therefore becoming more of a trend in the current market (Kelly, 2017). The companies have saved much money that they could have used to build stores and other resources that could have become outdated hence failing. Additionally, phones and other portable devices such as laptops and tablets have reduced the chances of purchasing a desktop which is not mobile, thus decreasing its accessibility. However, this is not the case for all people since the US Army prefer to use desktops. They prefer to use them because they are best in terms of security because they cannot be easily lost (Kelly, 2017). It is not a surprise if we see in the near future that laptops are no longer in demand any more due to the increasing capabilities in cellphones. These changes will continue to be evident as time goes by since more and more improved products will keep on appearing. Therefore, there is no need for a company to hold on to the past and declined to move with the change.
Conclusion
As seen throughout the essay, it is clear that the manufactures have to go with the market trend that is currently taking place. This means that they have to be changing from time to time in terms of distribution and supply of products to the clients if they want to remain relevant in the competitive market. This will additionally prevent them from falling behind other successful companies who might pose a significant threat to them, especially the ones applying the changes. On the other hand, customers are also expected to move with the market trend to avoid being left behind in terms of what is new in the market or what is trending. This will prevent the nature of limiting themselves to what is at their disposal. When it comes to big companies, change has been proven to be useful since it creates a new room of accommodating the latest trends. This will not only make the company remain relevant but also it will increase its customer base. Thus, if companies chose not to follow how the market is changing, then they are likely to be left behind and in the risk of losing value forever.
References
Kelly, L. (2017, August 31). How Many People Shop Online? [Infographic]. CPC Strategy . Retrieved on 13 October 2019, from http://www.cpcstrategy.com/blog/2017/05/ecommerce-statistics-infographic/
MacNeil/Lehrer Productions (Producer). (1999). Your computer, your way: Dell and the direct sales model [Motion Picture]. USA: NewsHour Productions LLC.
Dell Case study. (2011, February 08). Dell-Distribution and supply chain innovation . Retrieved on 13 October 2019, from https://www.marsdd.com/mars-library/case-study-dell-distribution-and-supply-chain-innovation/
