CTC,
RE: Application of an Internet Direct Sale Model can, IMO, become a core competency in itself
IMO, there are certain business modalities which can be extrapolated from one marketing environment into another similar environment. Core competency, or the mastery of the basic functions which make an enterprise run efficiently i.e. profitability, in any area such as manufacturing or marketing or brokering or operating an Airline should be able to be the basis for a similar ventures.
Dell is a marketing company, not an assembly company, as someone said in earlier post. Assembly is merely a process, no matter of what level of efficiency, which contributes to the delivery of a product to the end user.. the customer. Dell delivers customer satisfaction on product(s) in return for profits. They could fabricate that product themselves, sub it out, buy it branded, or buy it whitebox. What difference does it make as long as Dell can control the quality of the product. Dell can sell any product within the E-commerce structure just as Sears sold products via their catalogue many years ago. That is their core competency.
Let me expand that and say that Dell's core competency already that of an E-Commerce Marketing organization. The infrastructure is already in place… the internet, ordering and delivery systems, customer support, accounting support, etc. The question remains only.. "What market area should Dell be in which can capitalize on its existing customer base"? And what new areas can expand the customer base? Well, I suppose they could try to sell phone systems… not to far afield. Perhaps music systems. Perhaps microwave ovens. With the proper naming of wholly owned subs, they could be in a lot more distant areas than the ones I toyed with.
Dell could even become what the Sears catalogue was to the US in the first half of this century…. An Internet Super Store (ISS). (acronym by Rich). Sears was the catalogue super store. Walmart, Nordstrom, Macys and the like may face really stiff competition when the web appliance and credit card issues settle out more.
Dell the new ISS! I like it.
RW
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