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Managing the Digital Enterprise - Essay Example

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Managing the digital enterprise: A case study of Amazon and Dell companies Name Institution Instructor Date Introduction The adoption of a proper business model has been demonstrated as one of the strategies that companies use to enhance their performance and retain their customer base…
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Managing the Digital Enterprise
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Managing the Digital Enterprise

It demonstrates the degree of innovation of an organization and their responsiveness to the consumer needs and changes in taste preferences. With the introduction of technology, e-business models have been developed that allow businesses to demonstrate their abilities and responsiveness using web based centres. Thus, a business model whether tradition or e-business model demonstrates the approaches adopted by an organization to make profits. In this paper, the business models of Dell and Amazon companies will be analysed to demonstrate how each of the approaches have affected the performance of the businesses. In implementing the business models, these organizations have their specific community and target audience in sight, which affects the nature of their models. The target audience served by the organizations websites will also be analysed to demonstrate how the companies use their sites to attract their customers. Dell and Amazon business models The development of web dependent business models as have been done by both Dell and Amazon requires the understanding of the characteristics of web-users. Consumer behaviours constantly change and is influenced largely by the current occurrence in the market, competition and the entry of new players in the industry. Companies conduct studies on consumer behaviours to determine the nature of their web contents as exhibited by both dell and Amazon. Websites therefore incorporate business news, entertainment articles and educational activities aimed at attracting and arousing the interests of the consumers. In organizations that conduct online shopping, procurements, sales and advertising like Amazon and most recently Dell, a proper e-business model is of great significance (Kuballa, 2007). Dell Corporation launched their e-business approach in 1990s and this has enabled it to make inroads into new markets while designing products that suit the specific needs of the consumers. According to this model, the company maintains a virtual operations and sales system in which it operates without any physical outlets and intermediaries to link it with the consumers. With its sound supply chain management approach, Dell can sufficiently serve the orders of its consumers within 24 hours of receiving the order (Fife & Pereira, 2006). One of the business models used by Dell involves the employment of e-business in enhancing its supply chain management thus enabling the company to meet the consumer’s needs in time. In 1996, Dell Corporation opened its website www.dell.com for online selling purposes and designed it specifically to allow for interactive approaches with the consumers (Kha, 2000). The business model as practiced by Dell Corporation is also punctuated with consistencies in the development of new innovative products, which are availed on the company’s website for consumers to review. The innovative approach focuses on the key competencies of the company and the ability of the consumers to make their personal inputs on the products online before making their orders (Fox, 2000). Amazon has cut a niche for itself as one of the leading online book and music seller controlling a large percentage of the total books sold online worldwide. The success of the online ... Read More
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