Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Marketing Channel Partners, also referred to as intermediaries, are used by most companies to facilitate the movement of their products from their point of
Marketing Channel Partners, also referred to as intermediaries, are used by most companies to facilitate the movement of their products from their point of manufacture / origination to the marketplace. These partners are employed because they provide expertise, capabilities and efficiencies that the companies using them do not possess. Michael Dell ignored this "conventional wisdom" when he started his computer business in 1985. He established a business platform that allowed him to sell and directly distribute his products to consumers bypassing the middlemen. Due in large part to this strategy, his company became extremely successful. By the year 2000 Dell's annual revenues exceeded an astounding $25 billion. Discuss why Dell's strategy worked: 1. Explain why was he able to provide more value to his customers using this approach instead of using a series of distribution channel partners. 2. Discuss the advantages he enjoyed that were not being realized by his competitors. 3. Discuss if this strategy can work for other businesses. If you believe so, explain why and cite a company where it would be successful. 4. Additionally, select a company where this strategy would not work and discuss why.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Why Dells Strategy Worked Direct Customer Interaction Dells direct model allowed for a close and d...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started