Marketing Channel Partners, also referred to as intermediaries, are used by most companies to facilitate the...

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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. 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.

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1 Why Dells Strategy Worked Direct Customer Interaction Dells direct model allowed for a close and d... View the full answer