Dells Move From B2C To B2B

Dells Move From B2C To B2B

1Company InfoStarted in 1984Leading technology companyOne of the top 100 brands in the worldOffers desktops, PC, servers, networking products, storage and servicesCaters to large, small and medium enterprises, public and retail consumers.2Financials Segment RevenueDifferentiatorsDirect relationship with the customersDelivered customized products to their needsJust-in-time (Receives order before building a computer)Followed true pull system for pre-assembly inventory and distribution.Pull System of DellOrders PlacedFinal Consumer or System Integration ContractorDell FactoryVendor WarehousesProduction FacilityPhone, Fax or WebsiteProduction OrdersRequisite Parts & ComponentsFinished PCAdvantagesReduced number of steps from factory to the delivery PC to final consumerInventory carrying cost is reducedComponents are moved out of warehouse with minimum loss in value.B2B TransactionsExchange occurs through Dell website for corporate clientsSite customized for each clients as per their requirementsPurchase made simple by connecting to clients ERP systems.Orders are automatically updated for approvals and budget plansChallenges

Communication ChannelsAdvertising done through print ads in computer magazines is not appropriate corporate clientsImage of door to door salesmanshipWebsite design plays a crucial role.Just in time approach had to be made effective to please corporate clients.Communication modes have to be modified to receive bulk orders.FactorsScalability:Maintain long-term relationship with suppliersTechnology and process changes to match firms requirementsReliability:Third-party logistics to ensure timely deliverySales personnel with expert knowledgeTo succeed in B2B marketMaximize the value of the relationshipHighly detailed content is required for B2B marketingSmall, focused target marketMulti-step buying process, longer sales cycleBrand identity created on personal relationshipEducational and awareness building activitiesRational buying decision based on business valueMore people are involved in the decision making process in B2B