Question

What is the difference between HP and Dell distribution strategy?

Answer 1

Dell follows Direct sales(customer) model, where it is a computer maker not a manufacturer, whereas HP is a computer manufacturer with retail outlets and own outlets with the widespread network all over the world

Dell Differentiates itself from HP in following distribution elements.

1. Direct to order (Takes order directly from the customer)

2. Build to order manufacturing - Just in time

3. Mass customization

4. Partnership with Suppliers.

Most of the dell sales are of Direct order sales compared to HP, where HP sales mostly of retail outlet sales.

Just in time and Make to order is followed in Dell, whereas prior mass manufacturing is done by HP with the inbuilt forecast methods

Mass customization is possible in Dell, whereas Hp offers wide inbuilt configuration range to choose from

Dell is majorly a make, which imports all manufacturing activities unlike HP, where end to end production take place in HP.

Both have their own string segment and weak points, but dell the inventory and carrying cost is less, but for Hp manufacturing cost is less