Ism Midterm

1. Purchasing a car and a computer are actually much more similar in nature than at first glance. The price range and manufacturer of a certain car or computer can certainly play a role in the purchasing process, but there are also some less glaring similarities. Perhaps the desired number of users for the product should be accounted for. If multiple people will be using the car, it may be more advantageous to purchase a larger vehicle rather than a sports car. The same goes for a computer. If an entire family will be using the system, perhaps a large-memory desktop will be a better option than a smaller laptop computer. Searching for attributes along the lines of color, size, mileage, memory, safety, security, and additional accessories are also similar in the nature of purchasing both cars and computers.

Besides the obvious difference in purchasing a different product for a different use or desire, the main differences in the purchasing process can be attributed to the foundation of the “needs vs. wants” argument. Most people need a car; most people do not need computers. This relationship affects the way car and computers are sold. Special offers and bundles for higher end computers are not uncommon for this reason. Car salesmen are in a unique position; knowing that people need a means of transportation, but also trying to get the patron to upgrade their choices to luxury vehicles that they may not necessarily need.

2. Virtual integration provided major advantages to Dell. The virtual integration of the company can be linked to the practice of their direct model business plan. Michael Dell has stated, “the direct model has allowed us to leverage our relationships with both suppliers and customers to such an extent that I believe it’s fair to think of our companies as being virtually integrated.” (357) Virtual integration has provided the company with tons of links between Dell and its customers. Essentially, the virtual integration...