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the rise of dell

An interesting story from on Dell, and how it became the biggest vendor of PCs. Quote:

In 1994, Dell was a struggling second-tier PC maker. Like other PC makers, Dell ordered its components in advance and carried a large amount of component inventory. If its forecasts were wrong, Dell had major write-downs.

Then Dell began to implement a new business model. Its operations had always featured a build-to-order process with direct sales to customers, but Dell took a series of ingenious steps to eliminate its inventories. The results were spectacular.

The story doesn't completely oversimplify what happened which is good. (However, in these accounts, I'm always amazed that they completely ignore the errors of a company's competitors, which play a key role in winning anything). Interesting.

Categories: technology
Posted by diego on June 9 2003 at 1:59 AM

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