An Example of an E-Commerce Success and its causes

About Dell
In year 1984, Dell was established by Michael Dell and began by selling its’ own brands of personal computer. At the beginning, Dell is operated based on the direct order model and taking order through phone as well as producing personal computer based on customer requirement. However, Dell began to change its’ business model to a company that is used E-Commerce to conduct its’ business activities. Dell has expanded its’ business by offering its’ product online and continuous produce innovative product to meet the demand of e-commerce market. Therefore, Dell is now well known as “Virtual Company” that used E-commerce.

Success Factor of Dell


(i) Customer Satisfaction

Dell has become a well known E-commerce company and mainly due to the customer satisfaction. Previously, Dell dealt with its’ customer through phone for receiving their order. However, Dell has offered its’ customer with wide range of products and allowed them to order different component of computer electronically. Therefore, it will lead to cutting down of order processing time as well as ordering time which will subsequently increase the customers’ satisfaction. In addition, Dell has also provided customer support services by sending technician to homes to service personal computer.

(ii) Cost Saving

With the implementation of e-commerce in Dell, it can lead to cost saving as a results of moving its’ customer from phone to internet. The cost of customer services support via internet is faster and cheaper as compared through phone. The cost per call is approximately $ 20 while via internet is about $ 2 per visit. Therefore, Dell has obtained increase in revenue due to the cost saving.

(iii) Customized Product

Dell has provided various choice of product via internet. Customer can choose different combination of component such as size of hard drive and speed of the processor. Besides that, Dell continuously produces new features of personal computer in order to align with the demand in e-commerce market as well as retain the customer loyalty and attract potential customer.

(iv) Innovative Culture

Nowadays, company that desires to operate an e-commerce business globally has become harder and harder due to the increase number of competitors. Competitors progressively create competitive advantage in order to become the best in the e-commerce market. Dell is emphasized on improving their product and services to ensure the sustainability of the company. It has created a team that responsible to develop creative idea. They does not stop their effort to improve their business processes from time to time.

(v) Investment in Information Technology

Dell has been made some investment in Information System. They have done this because of the businesses environment today is growing rapidly and unpredictable. It also lead the company to become more structure and more competitive. Thus, they use the information system for competitive advantage which involved systems that link an organization to suppliers, distribution channels, or customers. In general, Dell uses these systems for the information or processing capabilities in the company in order to improve the company’s performance and to improve relationships among the company.

References:

Sensiz (2008-05-19). "WikiAnswers : Dell Key Success Factors". Retrieved on 2009-06-16.

Michael Dell. " Dell : The Secrets to His Success". Retrieved on 2009-06-16.

The History and Evolution of E-commerce

E-commerce is the acronym that stands for Electronic-Commerce. The term E-Commerce had been created in early 1990s when the internet became more commercialized and more users were involving in World Wide Web. According to the history of E-commerce, the term e-commerce refers to the process of execution of commercial transactions electronically with the help of the leading technologies. Such technologies are electronic data interchange (EDI) and electronic Funds Transfer (EFT) which was created in the late 1960s to enable the information exchange and business transaction to be done electronically. EDI permits electronically transfer of routine documents, while EFT allows the funds to be routed electronically from one area to another area. With the existence of EDI and EFT, E-Commerce applications were developed in the early 1970s.

In 1979, the concept of online shopping was introduced by UK based on Michael Aldrich. However, some problem arose such as growing of unauthorized hacking. Subsequently, invention of credit cards, automated teller machines and telephonic banking had indirectly brought in ideas to company to improve the E-Commerce. In addition, the development of Digital Subscriber Line (DSL) was further encouraging the development of E-commerce. DSL allowed users to access to the internet more efficient and persistent. Furthermore, the implementation of Web 2.0 also contributes to the evolution of the E-Commerce. The term “Web 2.0” was created by O’Reilly Media in 2004. Sometime, it is called “read-write” web. According to Wikipedia, Web 2.0 is refers to a perceived second generation of web development and web design, that facilitates communication, secures information sharing, interoperability, user-centered design and collaboration on the World Wide Web. Those internet-based services can be done through social networking sites, wikis, communication tools and folk-sonomies. For example, Web 2.0 allows users to retrieve information, upload and share photos.

In 1995, Amazon.com and eBay.com had been launched. They were the first and biggest E-Commerce which enables electronic transaction during that period. Currently, there are five largest and famous worldwide E-Commerce retailers; they are Amazon, Dell, Staples, Office Depot and Hewlett Packard. Generally, most of the E-commerce companies are selling music, books, computers and other electronics through internet.

E-Commerce activities will grow in the future as users find it convenient to purchase items through internet without physically travel to the shops.

Generally, the history and evolution of E-Commerce can be summarized as follow:

Adapted from E-Commerce as Revenue Stream

Kian Wen

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My dream car..
Hehe... I'll get the car before my age 30... It's my target... O.O

Yo yo yo, my name Kian Wen…
Now I having my degree course

Bachelor of Accountancy in

University Tunku Abdul Rahman

(UTAR),Sg Long.

I'm year 3 semester 1 from group 10 student.

I very enjoy my university life now

because I meet many funny friends here.

Especially CHIN KOK

who the most ‘FUNNY’ and ‘ABNORMALL’ people in my class. -.-

HAHA….

Just kidding

Hope he won’t kill me when see this blog..

HAHA...
The most website i log on

www.viwawa.com

It is a nice games website. Inside the website have many card games and so on.

When during the leisure time, try to play on it.

Google

When i need any information i'll go in the website

such as searching the image, information and so on.

Hotmail

I'll check my email on this website.

www.facebook.com

I think anyone know about this website. Hehe... No need i explain so much..

Animation

When i download the video animation i'll download from it.

Hehe.. My favorite animation are ONE PEACE, NARUTO and BLEACH.

Well, I hope you do enjoy the website, so take your time and relax!

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Shin Lu

Hi,everyone....My name is Shin Lu.

It's sad to say that I am 21 years old already and have to become a "real" adult.I have 3 "pretties".... pretty tall, pretty nice, and pretty well in calculation(specialize in $). haha.....
I am now pursuing
Bachelor in Degree of Accountancy in UTAR Sg Long.

The reason why i choose UTAR is UTAR has a pretty nice environment to study, therefore....
UTAR is my choice.

In addition, I strongly believe that i will become a successful accountant in the future and working in Ernst and Young, earning not less than RM 8000 a month.
I like to read books when I am free. Hence, I love to go bookshop to "hunt" for new books. Other than that, I like to surf web too. By serving the web, I will get to know more about what is going on at the world outside. Websites that i visited the most is

Yahoo news

New Straits Times Online

CNN.com

I also like to visit Youtube to know more about science and technology for the purpose of keep on updating myself frequently.

Hui Ping

Helo everyone, Low Hui Ping here.

During leisure time, I like to listen to the classical music, searching for new cuisine in different countries and hang out with friends .I wish to achieve the main goal in my life which is “ travel around the world !!!” before reaching the age of 30. The reason that I want to explore for various countries’ cuisine is to get recipe from different chef that is needed for me to open my own Café in future.

At the moment, the country that I have visited is

Paris

Japan

Hong Kong

Australia

United State

Korea.

Other than that, I like to play musical instrument like trumpet and piano and currently starting to compose some songs. Well, most of my friends will know that my favourite colour definitely will be pink or black .While my favourite food is seafood, steaks and so on. Although I realized that eat too much of seafood will end up with High cholesterol but I will still eat because I want to enjoy my life as I’m still young.

The five website most I log on
www.facebook.com
www.friendster.com
www.baidu.com
www.youtube.com
www.blogspot.com

The reasons that make me like to log in to Facebook and Friendster is it creates opportunity for me to know more friends and there are also games provided.

if I want to download song,

I will choose Baidu is my first choice as the speed is faster as compared to others.

I like blog because it is a place for me to express my feeling of happiness and sadness with my friends.

Handsome King

Hi, I am hyperhandsome guy, Wei Hun. My nickname is handsome. I am 22 years old, still young and available. Currently, I am having an accounting degree program at UTAR and I really happily studying in the university. I am group 10 student. I love all my lecturers and tutors. They always give me supports and assistants whenever necessary. Besides this, I also love all my friends because they are handsome and pretty especially my dear class representative, ah long, ah bing, ah lu, ah hua, ah wen, ah pei…

My specialist is to cook international cuisines such as French, Italian, Japanese, Chinese, African and Indonesian. I have won several culinary awards, I feel so proud that I able to bring good reputation to Malaysia.

Currently, I am living in a luxury customized designed Asian Tropical Resort that is owed by me. I love to spend my leisure time on riding my mighty horse around the tropical resort. Once in a while, I would like to dive in the crystal clear sea water right in front of my beautiful suite.

The web sites that I normally visit are:

Bursa Malaysia

The World

Swiss Bank

Microsoft

SAGE Online

Once in a while, I will subscript some company’s’ shares through Bursa Malaysia. This is my part-time job. I also prefer to order some philosophy references and books from Amazon.com.

My favorite friend is Jackie Chan, I always have lunch with him. I also go shopping with him. I am armed with 10 platinum credit cards, so that I would not shop till I drop. =)

… … … … …

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… …

…

That’s what I dream about myself.

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