Background
Dell Computer Corporate was founded in 1985 by Michael Dell. Dell exemplifies the major EC business models. First, it pioneered the direct-marketing model for PCs, and then it moved online. Furthermore, Dell supplemented its direct marketing with the build-to-order model on a large scale (mass customization). In doing so, Dell benefited from the elimination of intermediation with the first model and from extremely low inventories and superb cash flow from the second model. To meet the large demand for its quality products, Dell introduced other EC models, notably e-procurement for improving the purchasing of components, collaborative commerce with its partners, and intrabusiness EC for improving its internal operations. Finally, Dell uses e-CRM with its customers. By successfully using e-commerce models, Dell became a world-class company, winning over all of its competitors. Dell’s EC business models have become classics and best practices and are followed today by many other manufacturers, notably car makers.

Dell Key Success Factors
1. It's All About Culture
Dell has created a disciplined culture that focuses on optimizing its operational model, responding to its customers' needs and sustaining a self-motivated workforce. Dell's executives understand the key drivers of its business model and then strive to keep 53,000 employees highly focused on them.

2. Information is a Powerful Strategic Weapon
Information is important for Dell because it is widely distributed, analyzed and acted upon. People know where they and their business units stand at any time. Dell has made a serious investment in understanding its customers' activity in real time and then uses this information to constructively build its business and its winning culture.

3. Being the Low-Cost Provider Creates Flexibility and Market Advantage
Micheal Dell started the company with just $1,000. Dell bubbled up through a kind of Darwinian evolution, finding holes in the way the industry was working. But even when the company had become successful and no longer needed to be low-cost, it decided that path still made the most sense.

4. Product Development is Customer and Shareholder-Focused
Dell's approach to product development, R&D and working with its vendors is also instructive. While it has often been accused of not inventing a lot of its own technology, that's not how it measures its success. Dell don’t waste money building moats and wall. They tell potential component suppliers which product features are important to their customers. They are successful in selling their components to companies because that drives costs down for everyone and they will win their fair share of the market.

5. Boldly Challenging the Status Quo is the Path to Market Leadership
Twenty years ago, Dell entered a PC environment that was closed, vertically integrated, and based on proprietary technologies. Dell changed the strategic success factors in the PC industry by boldly challenging the status quo they encountered. Instead of trying to incrementally improve on their competitors' models, Dell completely rewrote the rules of competition by focusing on open standards, low-cost operations, customer-centricity, logistics, information and strict financial management.