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Dell and Virtual Integration - Case Study Example
Author : ansleyrath
Pages 12 (3012 words)
Make a profit of $1 from 100 persons each than earn $100 from a single person. This statement effectively justifies the requirement of a blend in technology and information which overshadows the conventional periphery among consumers and suppliers…
The equation was known as 'direct business model' which, eventually, proved to be expedient to Dell Computer Corporation.
The organization is efficaciously utilizing the formula so that it ends the value chain between the manufacturers, suppliers and users. This 'Virtual Integration' has proved to be a miniature to the information era because it effectively allows reconciliation beyond company limitations to generate exceptional results for its dealers. It is not only a strategical approach but an exigency. Day-to-day competition has marked the commencement of extremely convoluted products in the market. This results in cost-pressures and inappropriate linkage between dealers.
Virtual integration, on this context is a congenial approach to the business planet. It gives rise to another bureaucratic name- Vertical integration, which is contrary to the virtual one. Vertical integration is inefficient because it focuses on sharing ownership distinctions and no worthy knowledge. Virtual integration holds huge benefits for its marketers. It gives rise to new technologies and fragmentation has innovated the industry likewise. The traditional barriers which once prevailed among industries a few years back could dwindle to a large extent. ...