Customer Rating: 
Summary: Insights into Dell Computer's direct business model
Comment: In this March-April 1998 Harvard Business Review article, editor-at-large Joan Magretta interviews Michael Dell, the Founder and Chairman of Dell Computer."How do you create a $12 billion company in just 13 years?" Michael Dell did this by introducing the direct business model in 1984. In this formula, he would sell personal computers directly to customers and build products to order. It bypasses the dealer channel, thereby eliminating reseller's markup and the costs and risks associated with carrying large inventories of finished goods. But according to Michael Dell, the direct model turns out to have other benefits. "You actually get to have a relationship with the customer and that creates valuable information, which, in turn, allows us to leverage our relationships with both suppliers and customers. Couple that information with techology; and you have the infrastructure to revolutionize the fundamental business models of major global companies." The article takes your through the development and amazing growth of Dell Computer, including its well-known customer segmentation and the unsuccessful initial entry into retail business.
This McKinsey Award winning article is great. Michael Dell gives great insights into Dell Computer's successful direct business model. He discusses how it works and explains the strengths and weaknesses. The article is written in simple US-English. Highly recommended!
Customer Rating:
Summary: Virtual integration is not enough
Comment: I have read many business books and my personal feeling is the vision is great yet the execution plan is more important, Dell is
a visionary and practioner, that's what differentiate this book from all the other visionaries...I would recommend this book for all managers in corporate America.
