An example of E-Commerce success and its causes

Dell is one of the most successful example of E-Commerce company in the world. Dell was founded and established by Micheal Dell in 1984 with a simple concept by selling computer system directly to customers in order to meet their needs. Dell began by selling upgrades of IBM-compatible PCs. In 1985, Dell began to sell its own brand of PCs, called Turbo, which had an eight-megahertz processor. The first, the first Dell laptop is made in 1991 and by 1993it became the top five computer companies in the world. In 1996, Dell beagn to sell their compuer products through the website and they took over Compaq in 1999


From the beginning, Dell operated on the direct sales model, taking orders over the phone and building PCs to the customer’s specifications. In 1996, Dell is creating its first website and moving many of its business activities to the Internet. By launching Dell’s website, the customers can buy the computer products of Dell according to their specification. Their strategy of selling products is no middleman and no retail outlets. Therefore, we can buy the computer products of Dell with cheaper price and saving our time.

Causes that contribute to the success of Dell Inc.:

1. Customer Service
Customer can customize their own computers by launching Dell’s website. Besides, salespeople had to install their own computers, so they gained hands-on experience with the equipment they'd be selling, and can better help customers make informed decisions and solve problems with the product.

2. Cutting operation costs
Dell’s strategy of selling their products with no middleman and no retail outlets can cut down the cost of middleman and sell to the end user directly at a lower price.

3. Good communication
Good communication exists with suppliers about customers’ specifications, so that they are able to deliver on time. Good communication with employees about customers’ information also can make them serve customers better.

4. Being a low cost provider creates flexibility and market advantage
Dell is as a low cost provider, their products are cheaper and in good quality. The low costs can attract customers and the quality of their products is maintained from time to time.

5. Effective and efficient delivery services
Products will be delivered to customers in 5-8 working days.