Question

Dell has been selling computers for over 25 years with its unique, direct build-to-order, sales model....

Dell has been selling computers for over 25 years with its unique, direct build-to-order, sales model. Read about Dell on pages 90–93 in our textbook and also watch the Dell Supply Chain video and answer the following questions:

Why did Dell decide to sell its products via retail outlets a viable solution? Do you agree with this distribution strategy? Why or why not?

Homework Answers

Answer #1

The main reason behind the decision of selling the computer through retail by Dell can be seen as this option will further reduce the cost of the computers and at the same time, more personalized computers can be sold with the help of internet. With the help of the low-cost model, standard products can be manufactured despite having longer lead time. A huge portion of transportation cost can be saved by selling the product through retail outlets. In order to get the benefits of the strengths of both online sales and traditional retail distribution channels, the tailored approach used in online can also be utilized.

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