Question

Choose a company that markets computer products over the Internet. In what ways does the company create value? Is it likely to capture much of this value? Why? Why not? Explain. Do not give me flipkart example again . do not post picture of answer please .

Answer 1

The company selected for the discussion is Dell computers that not only manufacturers the computers, its accessories, but also it markets these computer products via online channels in different markets.
The company creates value in different ways:
1.   It creates the base models and let consumers to choose the other important configurations of the computers and make a final computer product. It helps each consumer to get what they want and feel satisfied. It is the value created by Dell.
2.   The company directly interacts with the consumers and eliminates the middle man or intermediary channels. Hence, the cost is saved and reflected in reduced prices. As a result, consumers get a quality product at a reduced price, a value creation for both the parties.
3.   The make to order concept followed by the company where the company produces and sells what is demanded by the consumers. So, it is the purely demand oriented system that satisfies the needs and wants of the consumers. It is another value creation for the target audience.
4.   The company follows a JIT system of inventory management, reducing the cost of inventory and it is a value creation for the organization. Afterwards, a consumer gets price quote that is adjusted due to the minimum cost of inventory without compromising with the quality. It creates value for the consumers.

Yes, it captures much of the value it creates for different stakeholders because:
1.   It brings features and promises that are in conformance to the quality
2.   It follows the practices that are friendly to the environment and community
3.   Customers get the maximum of the reward due to the initiatives taken up by the company

It has made the company to be a reputed brand in the computer market and builds a positive brand positioning among the consumers.