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Essay / Research Paper Abstract
This 3 page paper uses an interview with Michael Dell of Dell Computers to investigate how the principles he uses could be used by a retail store. Bibliography lists 1 source.
Page Count:
3 pages (~225 words per page)
File: D0_HVDellRt.rtf
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Unformatted sample text from the term paper:
them to retail sales. Discussion Briefly, Michael Dell says his company is a model of "virtual integration" as opposed to "horizontal" or "vertical" integration (Applegate, Austin and McFarlan). How did
he "pioneer" it? Dell says he realized it made more sense to buy some components from other computer companies than to make everything in house (Applegate, Austin and McFarlan). This
doesnt really seem to apply to a retail store, since they are reselling, not manufacturing, but perhaps we could make a comparison between Dells decision and the way the store
decides to buy inventory: just as it makes no sense for Dell to make everything when its cheaper to buy some components, it makes no sense for the store to
stock a wide range of everything if no one wants it. How can they grow faster without all the physical assets? Dell grew because with fewer things to manage, there
were fewer things to go wrong (Applegate, Austin and McFarlan). In retail it would be exactly the same thing: smaller inventory, fewer employees, shorter supply chains: they would all add
up to a leaner operation that would be more profitable and more likely to grow. Dell added that they have a number of people in the field who work on
their systems but are not employed by Dell, but by other companies, also cutting down on the number of employees Dell has to manage (Applegate, Austin and McFarlan). This led
to the next question: How does this differ from outsourcing? Outsourcing is a dirty word to most people today, as they envision their jobs moving to India, etc. Dell says
that most companies outsource to get rid of a problem they cant fix, but his company isnt like that; working through service providers allows Dell to fix problems quickly and
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