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Dealing Directly with Customers Bypassing of traditional sales and
distribution channels to reach consumers directly
Michael Dell
Dell Inc.
Built on a vision of customer responsive order fulfillment.
Gives customers the ability to order custom configurations of PCs online
This vision requires a flexible supply chain management. The frictionless flow of information through the supply chain is central part of Dell’s vision.
Dell Inc.
Uses direct sales approach with no middleman.
All customer service is done via the web helping to cut costs.
Receives money before product is shipped.
Briefly explain the differences between the “make and sell” and “sense and respond” approaches in business.
(25 Marks)
2014 -4. (a) Briefly explain the differences between the “make and sell” and “sense and respond” approaches in business. (25 Marks)Make and Sell – The company will produce the goods and sell it to the customers
Sense and Respond – identify the customers and their patterns and sense what they want and produce it to them before hand
Dell Computer Company uses a Direct-to-Customer approach in doing business where there are no middlemen. The company also makes-to-order rather than sell pre-manufactured products. Briefly explain five (5) advantages of this approach.
(20 Marks)
2013 -4. (d) Dell Computer Company uses a Direct-to-Customer approach in doing business where there are no middlemen. The company also makes-to-order rather than sell pre-manufactured products. Briefly explain five (5) advantages of this approach.
(20 Marks) • Can sell at lower prices • Build to customer order • Receive payment earlier • Speed up new product release cycles • Use customer data to provide customized
value added service
2012 -4. a) Briefly explain the validity of the e-Business Models in today’s context and the differences in old and new Business strategies.
(20 Marks)
2009 -4. (b) (30 Marks)2010 -4. (a) (20 Marks)
Compare and contrast the traditional business models and eBusiness models intoday’s business environment.
Compare and contrast the two concepts Mass Production and Mass Customization.Explain how eBusiness can help to implement these concepts.
(30 Marks)
Mass customization
• Differentiating a product for a specific customer
• Possible to add and/or change functionalities of a core product or to build fully custom enclosures from scratch
2010 -2. b) Compare and contrast the two concepts Mass Production and Mass Customization.Explain how eBusiness can help to implement these concepts.
(30 Marks)
Mass production (Traditional Factory Approach)
• Production of large amounts of standardized products
• Assembly line production (automacy)• Mass production is capital intensive and
energy intensive • Machine use is high proportion to workers• Mass production line is expensive as usage
of robots• The probability of human error and
variation is also reduced because of machine use
• A reduction in labor costs• Inflexible because it is difficult to alter a
design or production process after a production line is implemented
