Business 28/03/2022 by Kyara Hafiza Saliha https://padlet.com/202045721/y6ar03advpq9ta1h 4.5.20 question c en-us 2022-03-28 01:53:43 UTC 2022-03-28 06:25:15 UTC hello@padlet.com Introduction Reinaldi https://padlet.com/202045721/y6ar03advpq9ta1h/wish/2116168336 Dell has traditionally been a business that uses zero-level distribution; the firm directly sells to its customers without intermediaries. However, the managers has made a paradigm shift in the firm, as they now partner with Walmart to have their computers sold in the retailer. It can thus be argued whether the move is a good decision. ]]> 2022-03-28 01:57:42 UTC https://padlet.com/202045721/y6ar03advpq9ta1h/wish/2116168336 Pros Reinaldi https://padlet.com/202045721/y6ar03advpq9ta1h/wish/2116168465 One advantage of partnering with Walmart is that Walmart, as a retailer, will be able to reach a greater market compared to Dell. This is especially true with Walmart being the largest retailer in the nation. Thus, Dell will be able to sell more of its goods and gain more revenue.

Moreover, retailers bear the costs of the storage, thereby reducing for Dell Inc. By making the need for storage redundant, the business does not need to rent or purchase warehouses so that they can store their computers. This will increase the profit margins for the firm. Moreover, the firm can thus use Just-In-Time manufacturing, which will further reduce their operational costs. ]]> 2022-03-28 01:57:49 UTC https://padlet.com/202045721/y6ar03advpq9ta1h/wish/2116168465 Cons 202045721 https://padlet.com/202045721/y6ar03advpq9ta1h/wish/2116169536 The main disadvantage of using intermediaries is having to lower their profit margins or put higher prices to maintain their profit. Choosing either of them is a disadvantage for Dell as they cannot get 100% of what they earn from the customers. Therefore, they cannot invest their profits back into the business fully, 

Additionally, Dell Inc. will no longer have full and direct control of its marketing; instead, the intermediaries (Walmart and Sam's club) will choose where and how to market Dell’s products. This sets apart Dell and their customers which can possibly lead to lower customer service quality.
]]> 2022-03-28 01:58:36 UTC https://padlet.com/202045721/y6ar03advpq9ta1h/wish/2116169536 Conclusion 202045721 https://padlet.com/202045721/y6ar03advpq9ta1h/wish/2116171024 To an extent, using intermediation is a good decision to broaden Dell's channel distribution. Walmart, one of the largest grocery chains in the US will give Dell a large number of potential customers which can make Dell more competitive. However, they should keep in mind that they will have to increase their prices or have smaller profits. 
Furthermore, there are other opportunities they can get from e-commerce which they may have not explored yet. This can give Dell's loyal customers the comfort of shopping from home while also keeping full revenue and control.


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