Dell

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For 29 years, Dell Inc. has been on a long, hard journey, experiencing quite a lot of ups and downs. Dell has had several rivals throughout the years such as Hewlett-Packard(HP), Acer, Gateway, Sony, Asus, Lenovo, IBM, MSI, Samsung, and Apple. Micheal Dell, at the age of 19, “started the company that would dominate the industry. The computer whiz had $1,000 and a novel idea: to eliminate the retailer and sell directly to the consumer.”(1). IBM computers were selling at $3,000 in stores and Dell had realized that he could purchase the parts at one-fourth the price. “Even with added memory, bigger monitors and faster modems”(1), the computers could still be sold at a reasonable price. Soon he started buying the parts in bulk to reduce the price, which was a good business decision on his part."I was quite excited about the possibilities for personal computers and how they could change society. Meanwhile, as a customer, I was disappointed that when I went to a computer store, the salespeople didn't really know about computers. I had this idea to sell the products directly to the user over the phone. The Internet,” he adds, “was an unimaginable gift from heaven that came ten years later.”(1). In August 1983, he went to the University of Texas in Austin and was not attending classes. When his dad asked him what he wanted to do with his life he said he wanted to compete with IBM. As time went on “The public was becoming more interested in computers and wanted more sophisticated models, but no one was producing them. In early May, in 1984, a week before his final exams, Michael started Dell Computer Corporation with $1,000. He took his exams, then dropped out of college at the end of his freshman year”(1), “after getting about $300,000 in expansion-capital from his family.”(2) . “It was time to try out his direct-to-the-customer business model.”(1). In 1985, “willing consumers were essential to his success. One of them was Clint Johnson, a freelance writer living...
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