Case study: Dell

Product development at dell 1.What is Dell's business model? How is it different from its competitors? (1) The Dell model, which relies on direct mail order sales to customers, Dell serviced its customers with combinations of home-based telephone and field-based representatives. Well-trained technical representatives provided the first post-shipment level of support through 24-hour support system, which help customers diagnose and solve problems themselves 91% of the time. (2) Dell assured product quality by extensively pre-testing all the configuration …

…is "dual path") is a good compromise between the first two options. Although this method would costs Dell more budgets, it can help Dell keep the chance to launch the new LiOn batteries, which will bring the largest margin to Dell. If it fails, Dell also can drop it and revert to the first option. Through comparing dual development paths and over designed path, I prefer the former one, since its relatively lower cost (Exhibit 8).