START A BUSINESS OF SIMPLE IDEAS

Many argue that to open a business takes a very creative ideas and innovative. That is not true of Michael Dell, he opened a business with a simple idea that is not selling computers to selling brokers but directly to consumers. He cut off the middlemen, thus the price of a PC can be suppressed. Michael Dell started the business with a capital of $ 1000, and doing marketing through the "Mail Order" within 16 years of sales increased from 6 million to $ 36.9 billion dollars. Dell Computer to open branch offices abroad in London in 1987. Now has opened offices around the world with employees reached 40,000 people.

However Dell Computer does not travel smoothly. In 1993, Compaq which at the time as leader of the PC sales market, put through a price cut to compete with Dell. The result of Dell Computer loses 65 million dollars in the first six months, which caused nearly bankrupt. Finally, Dell made a very fundamental change in the so-called business process re -engineering in the business with the introduction of E-Commerce. Dell began to rely on speed. In 1999, order a PC from Dell today, tomorrow has been submitted. Whereas for the complex system delivered at most 5 days.

Other innovations are assembling a computer after order. Dell's mass customization approach that is produced in large numbers, thus reducing the production cost per unit. Dell put parts store run by suppliers, which is located 15 minutes from the factory and transportation arranged by e-mail and made quickly. Dell provides a rapid servant by performing communication via e-mail and Web sites. PCs from Dell in the same test with the network testing and cooperation with other suppliers that can reduce the test period of 60 - 90 days to just 15 days. Dell monitor employee productivity and return on investment (ROI) on an ongoing basis.

Dell has introduced the E-Commerce in the business. Most customers do transaction through e-Commerce. Customers can also access detailed diagram of the computer and get information about troubleshooting. By using the pricing and product configuration online, it can eliminate the work, so as Dell can save 15% administrative fee. For the biggest buyers, such as Easman Chemical, Monsanto and Wells Fargo, Dell made the business Web page that can access Dell's E-Commerce, which allows employees to order quickly and easily. By using this strategy Dell can sell at a price below its competitors .. In 1999, Dell can sell 1.7 million dollars per day on the website E-Commerce. Dell shares rose 2000 percent in two years. Dell can compete with world-class business such as IBM, Compaq, HP, and Bell-Nec. Even the market share and profits continue to rise and eventually became the largest PC seller in the world.

In 2001, Dell Computer is an amazing world business ranked 23 and an amazing world business ranked 4th in 2003. Dell get real benefits from the use of E-Commerce. Dell's success story is a success story that is hard to believe, but real and came from a simple idea.

M. Suyanto

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