Case Study: Direct Business Model

What is the "direct business model"? Direct business model is the system of business initiated by Michael Dell in administering Dell Computer Company and it is a system that promotes direct communication, sales of product to customers without the use of intermediary. This model of business articulates efficiency by effectively reducing the influence of an intermediary. Undoubtedly, Dell Computer Company, in effect to customize their order according to customers’ needs, initiated a prerogative of direct dealing with their numerous customers which enables the company to comprehend what elements should be introduce and included in their computer product. Direct business model also include the ability to listen directly to customers in regard

(Juan, 2015).
What are the strengths and limitations of the direct model? Direct business model have viable strength. It enhances strong customer relationship; when a business engages in direct model, it operates more than product selling but encourages a meaningful and memorable personal relationship with the customers. Furthermore, direct model affords a company access to more consumers which could not been accessed through media advertisement strategy. That is why Dell Computer has annex

Moreover, when the company introduces www.dell.com, it massively expanded the scope of its product to a broad customer base who according to (Juan, 2015) could configure, order pc online and have access to technical support, and download important update to their software. This opportunity could not have been possible without the direct model. Furthermore, Dell’s direct model essentially kept its numerous customers to the company when it started selling it product online and subsequently provided e-commerce infrastructure to its customers, generating an enormous profit from those services. (Kraemer & Dedrick, 2001). This culminates Dell’s business opportunity which could not have been possible in the absence of its “direct business model”. Conclusively, direct business model enables a manufacturer to directly sell its product to the consumers and have the consumers directly interact with the company regarding how they want a product manufactured. Dell computer has been relatively successful in its application. Direct model have it strength and weaknesses but it strength has been innovated by Dell Computer and finally, direct model has created an immense opportunity