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THE BUSINESS MODELS OF DELL COMPUTERS AND PRICELINE.COM.

18537. THE BUSINESS MODELS OF DELL COMPUTERS AND PRICELINE.COM.

This paper evaluates the business models of two successful e-businesses: Dell Computer and Priceline.com. Dell attained success by using a “direct” model, which involves selling built-to-order computer systems directly to consumers. Priceline.com’s model involves a “reverse auction” or “name-your-own-price” approach. The paper describes the web sites of the two companies and discusses theoretical perspectives on the issue. It then concludes with the argument that, although these innovative models were successful in the past, they are now in need of updating because of changes in the competitive landscape and new demands among consumers. KEYWORDS: Internet business models Dell Priceline.com low cost strategy customization. Harvard Style. 9 pages, 20 footnotes, 13 bibliographic sources. 2,052 words.

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