One of the most significant example is Dell Computer Corporation. The company's strategy of selling over the Internet with no retail outlets and middleman as been admired by any e-commerce model.
One of the key part of Dell's success is that the site offers consumers' 'choice an control' which means customization. Buyers can click through Dell and assemble a computer system piece by piece, choosing components based on their budget and needs. Their ability to allow consumers to custom design has traditionally been something that they are ahead of because they are known as the leaders while the rest are still catching up. From our opinion, we believe that Dell's major competitive advantage came from being the pioneer in offering the service of customization. They allow consumers to be creative in assembling their own computer parts. This brings a greater impact in customer satisfaction showing increasing performance in the sales figure of the company.
In addition, Dell's business strategy focuses on direct business model with hope to deliver excellent customer experience through direct customer relationship. This is because they know exactly what customers are ordering as it is a one-to-one proposition. Dell also gets feedback on how their site is working to enable them to make further enhancements. We believe that direct customer relationship strengthens the business experience created between Dell and their consumers. Moreover, by taking customers' constructive comments, Dell will be able to improve their site according to customers' desires.
Dell's main profit source is from B2B sales which holds 85% of their revenue. To facilitate B2B sales, Dell site offers each corporate customer an individual interface. With Dell's Premier page, purchasing managers can just log in and customize products according to the company's needs. Dell's Marketplace brings its business customers as suppliers and buyers in a dynamic B2B e-commerce community. It extends value to customers by providing access to the e-commerce community through powerful, reliable and affordable technologies such as Dell servers and storage. The efficiency of B2B system works in synergy with consumers sale. This is because corporate customers are consumers too, so if they have a good experience, they might even buy a system for personal use also.
Furthermore, a part of Dell's effort on expansion is by gearing towards traditional retail. They have created kiosks which are mini-stores in shopping malls with basic inventory and Dell salespeople. The kiosks are tied electronically to Dell.com and they are an old hybrid which is a brick-and-mortar mini-store with e-commerce option. These kioks enable mall shoppers to physically touch and see the products and then order it right there or order from home. Creation of these kioks, enables Dell to target orthodox customers who do not exercise their option for online purchasing by building their confidence on the site.
In a nutshell, Dell's core competence is its direct e-commerce model. Dell is continuously evolving because it needs to reflect the rapid changes in the market and stay ahead of their customers. The factors mentioned above are the main causes or their competitive strategies to become one of the most successful e-commerce companies in the world.
Reference:
http://www.ecommerce-guide.com/news/trends/article.php/2013731
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