Dell tells you how to make money from the Internet

Network | Online money

In 1983, the 18-Year-old University freshman, Michael Dell, opened a newspaper to buy a white BMW car to report, the back seat with three computers. At the University of Texas at Austin for less than a year of schooling, he has built up knowledge, skills and a little bit of his first wealth by upgrading his computer to another person. Based on the belief of "direct customer", Dell was established in a university with a registered capital of USD 1000.

In 1993, Dell has grown to 2 billion U.S. dollars in sales of the computer industry "Dark Horse", the rate of up to 127%, but the growth of such speeding to the 28-year-old Michael Dell and his company brought a series of fatal problems. Uphold the "Abandon inventory, listen to customer needs, adhere to direct marketing," the three golden rules. Dale finally turned the tide.
6 years later, the company's annual turnover of more than 19 billion U.S. dollars, every day through the network to sell more than 12 million dollars of computer systems, Michael Dell became the "fortune" 500 corporate president of the youngest one.

The interest in the web began in the early 1990s

When Michael Dell first started to be interested in computers, the first thing to do was to contact people by bulletin boards. Anyone who has a modem in the United States can exchange information with others on the Internet. These tens of thousands of systems have created the "American Hotline" and today's bustling online world. He believes the Internet may revolutionize the development of the computer industry.

In the the early 1990s, there were some radical thinkers who often talked about an electronic network that could convey information, when electronic networks were mainly concentrated in universities and government systems.
Online trading was limited to ordering T-shirts at that time. But he immediately thought that if he could subscribe to the Internet to buy a T-shirt, it means that everything can be ordered, the computer is no exception. Best of all, Internet trading has to be computerized before it can be done! No other more powerful invention could have been able to expand the market, he thought.

In the late 80, the company discussed the development of a system that allows customers to order by modem and to match the specifications of their PCs. The conclusion, after consideration, was that it was too difficult and too expensive to do so at the time. There were so many different software platforms and so many different versions of the programs that needed support.

1989, the Bernabeu • Li Fa the World Wide Web (WWW). This is the first actual hypertext system that makes the interface between the user and the network easier. By the year 1993, Andleysen, of the University of Illinois at Urbana-Champaign, and others who had invented mosaic browsers to use the Internet to share and exchange information in a new way, the network had attracted public attention. Browsers are natural derivatives of electronic bulletin boards, but they are much larger in scale. Compared to the bulletin board, the bulletin board needs to be created by the user himself, and the Mosaic browser provides a standard interface for any user to connect to the network.

Dell likes this concept very much, and he likes to be able to see the rest of the world as soon as he turns on his personal computer. He started to do it and spent a lot of time on the internet right away.

The "World Wide Web" instantly provides customers with the information they need to buy and use computers. Whatever software platform they use is feasible. Better yet, the web immediately attracts people who have a concept of computers, which is Dell's main customer base, and who will no doubt be the first to surf the internet.

Launch Dell website www.dell.com

As early as the late the 1980s, Dell technicians had set up FTP for the transmission of files. If you are a member of an internet-accessible university or Government organization, you will need a file to download this information to Dell's FTP server.

However, the Web site on the dimensional web, can play a function should not just that.

Companies began to explore the World Wide Web at the time, but many companies were not sure how to use the tool, and only a handful of companies had their own web pages, mostly in a static way, announcing the company's annual reports, press releases and marketing materials. Most people talk about the web as an information medium, providing a lot of entertainment and value added services for anyone who has a personal computer and knows the virtues of the network.

As the security of the browser and server technology gradually increased, coupled with the formation of a few of the enrichment sites, the transaction demand is increasing. Almost all industry observers around the world are predicting that electronic commerce will advance by leaps and bounds. According to a forecast at the time, by the year 2002, only the manufacturers of the company's online transactions, will be 300 billion dollars per annum.

The web means a virgin land of commercial potential. The internet will be a great opportunity for marketing brands. In June 1994, Dell launched its own web site, www.dell.com, which contains information about resources and email boxes for support, mainly for people who are familiar with technology, because they tend to accept new technology faster. Not long after, the other side told, hope to have a way to calculate the different assembling cost of personal computers. So Dell launched the online assembly the following year. Customers entering the Dell Web site can choose a system, plus or remove different parts, such as memory, disk drives, video cards, modems, network cards, sound cards, speakers, and so on, and then immediately calculate the price of the system. At that time, the customer still had to talk to the business representative to complete the transaction, but the customer had a slight taste of the benefits of the electronic direct-selling model.

Dell has been surprised by the speed with which Internet knowledge has spread. "I really like your site," said the company's chief information officer, 3M. "Dale Fat Pet if surprised. Feedback like that gave Dell confidence, and he decided: "The web will become mainstream, and we must prevail on the Web." ”

Online Direct Sales "We should expand the functionality of the site to do online sales." "When Dell was on the board, the firm said:" The network can be low-cost, one-to-one and high-quality customer interaction, online sales will ultimately change the basic way Dell business. ”

As he observes, the network makes the direct pattern of production reasonable extension, creating a stronger relationship with customers. Instead of traditional telephone, fax and face-to-face contact, the web will provide customers with the information they need in a faster, more cost-effective way.

The benefits that the network brings to Dell are significant. It applies to all Dell's customer base and can be an effective tool for further identifying and locking different market segments, and can range beyond the United States and across the world. The one-to-one nature of online trading allows companies to increase their sales by not having to substantially increase their staff, because salespeople can devote more time to higher-value activities without having to deal with trivial matters.

The network enhances the speed of information flow, not only reduces the cost, the result customers also more by its benefit. By then, Dell would have to deal with transactions, including order status, assembly, price, and so on, each of which would cost money. But on the web, these transactions cost little. There are now more than 2 million people on every Dell website, but the cost gap is very small, whether it's 2 million or 20 million. Each more transaction on Dell's website can reduce the company's indirect costs and save a lot of money for customers.

In June 1996, Dell started selling desktop and laptop computers through the website. At the end of that year, the server business was added.

Take off the general growth

When Dell was conducting a market survey, it quickly found that corporate customers were more hesitant to buy computers through the Internet than consumers in general. Consumers will be notified by email that after they have decided on the specifications of the computer assembly and are valued, they will be eager to press the mouse to complete the purchase action. So Dell decided to focus on the general consumer, so as to better understand, to find the best way to contact the enterprise market. And so far, the corporate market is Dell's largest market.