Comparison between Direct Model and Channel Business Model in PC Industry
Date Issued
2006
Date
2006
Author(s)
Ho, Tzung-Yen
DOI
zh-TW
Abstract
Due to high volatility of the prices and demand/supply conditions of the electronic component industry, inventory losses could be a serious issue in the PC industry. However, Dell adopts the direct model, selling products to end users without any intermediate, to reduce inventory risks and gain a higher gross margin. Relying on its unique MIS to implement the direct model, Dell successfully establishes incredible flexibility, cost advantage and capability of rent appropriation.
While everyone thinks that Dell’s business model is the only way to reduce inventory risks, Acer’s recent rising performance denies the argument. On the one hand Acer cooperates with OEM, ODM and EMS partners to accelerate turnover rate. On the other hand Acer uses of distributors and agents to fast penetrate local markets without any direct sales. Actually Acer owns nothing but the brand, and, therefore, Acer can reduce fixed cost to compete with Dell.
The two business models are proven by the markets that both can work, but face some challenges. Even though Dell still gets ahead in American and European PC markets, the growth rate in the markets is not high enough to support Dell’s stock price. To make matters worse, Dell doesn’t have obvious advantages in server, NB and IT services areas. Acer’s growth rate is very high; nevertheless, Acer’s business model can be imitated by other competitors easily.
To sum up, low inventory can’t promise to succeed anymore in the PC industry. After Acer solved their inventory problems, the next issue is to how expand the business model to a great extent. In conclusion, we show that different business models can achieve the same level of success in the PC industry.
Subjects
戴爾
宏��
直銷模式
虛擬整合
經銷營運模式
Dell
Acer
Direct Model
Virtual Integration
Channel Business Model
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-95-R93724042-1.pdf
Size
23.31 KB
Format
Adobe PDF
Checksum
(MD5):4e614b61c045a06edca4c896a5d7f9a9