Next, Mr Kelly and his team roughed out the basics of the business model. There was never any doubt it would be based on the US model. But they used a simpler form of it - "about 35-40 per cent worth," Mr Kelly recalls. At first, this meant that Dell sold only a limited line of products - desktops - emphasizing corporate buyers. Dell then built call centers and sales teams, but in a way that was focused on the initial target market.
Mr Kelly had to adjust the model to accommodate local idiosyncrasies, a challenge that continued well beyond his tenure. For instance, even though eligible customers could order PCs online or via phone, low credit card penetration meant that most were unable to pay with credit cards. Dell created a flexible model that allowed customers to pay-on-delivery.
Next, Mr Kelly and his team roughed out the basics of the business model. There was never any doubt it would be based on the US model. But they used a simpler form of it - "about 35-40 per cent worth," Mr Kelly recalls. At first, this meant that Dell sold only a limited line of products - desktops - emphasizing corporate buyers. Dell then built call centers and sales teams, but in a way that was focused on the initial target market.Mr Kelly had to adjust the model to accommodate local idiosyncrasies, a challenge that continued well beyond his tenure. For instance, even though eligible customers could order PCs online or via phone, low credit card penetration meant that most were unable to pay with credit cards. Dell created a flexible model that allowed customers to pay-on-delivery.
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