Their theory, large customers with several Dell systems would find it difficult to buy from someone else if Dell could create customer loyalty. That same loyalty increases repeat sales. So not only does Dell excel in its products, it is also a leader in Customer support and service. With tools like Support.Dell.com which is a section of the Web site where customers can find a wealth of information about their systems, including the warranty status. Or the "Ask Dudley" patterned after Lycos' Ask Jeeves allows users to pose natural-language questions.
Then there is a customer discussion board, "Dell Talk" where Dell customers can post messages to each other. Through the use of email, "Customer-to-technician, Dell has a dedicated team of technicians devoted solely to responding to the 25,000 or so messages that arrive each week.
Redesigning the Supply Chain.
One of the primary reasons Dell is admired by everyone is its highly efficient build-to-order model that allows them to quickly build and deliver custom solutions to its customers.
Dell sells directly to customers to cut out costly middlemen, buy components in huge volumes to get the lowest prices, and force suppliers to locate within a few miles of Dell's facilities so parts can be delivered only hours before the supplies are needed. Such supply-chain efficiency allows Dell to radically undercut rivals' prices. The resulting price wars suck profits out of a business until only Dell is the last one standing.
Operational Efficiency.
Efficiency and automation in operations has been the key to Dell's success. Recently Dell opened a state of the art plant, Optiplex. This plant continues Dell's strategy of minimizing inventory and overhead. The plant is run by automated computer screens, which instruct small teams on what to build. The actual assembly takes 3-4 minutes. Electronic commands move products through the plant for customization, packaging and delivery.