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Dell Computers to Become a Private Company

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Dell Computers to Become a Private Company

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  • March 15, 2013
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DELL COMPUTERS TO BECOME A PRIVATE COMPANY IN AN EFFORT TO AVOID BANKRUPTCY
Michael the CEO of Dell became a business man when he was really young. He believed if you had an idea, worked hard and treated customers with special care you can make money and sometimes a lot of it. Michael started the company with a bare $1000. In 1984 where he started a company that custom made person computers. In 1988 is company grew into what’s known as Dell incorporation. And issued over 3.5 million shares to the public. The company grew in the sense that if you have invested $1000 in Dell in 1988, by 1999 your shares would have grown to over $600,000. (McGraw hill).

Dell is one of the companies that was built in nothing more than the execution. All Dell did was buy from the suppliers and packaged it together and sell, they believed if they stayed focused, markets hard and sell hard they would produce products that were cheap and on demand. Michael was a very intelligent person. He build a huge company with other people’s money. Dell Company got into the PC market when it was hot. The suppliers was looking for people to partner with. Dell figured that it would let other people invest in all the necessary concepts including microprocessors, disk and memory, the technology. All they had to do is put the pieces together. Which made Dell a very successful company. (Phoenix principle)

“Being the world's best PC maker is no better than being the world's best maker of white bread (Hostess) or the world's best maker of photographic film (Kodak) or the world's best 5 and dime retailer (Woolworth's) or the world's best manufacturer of bicycles (Schwinn) or cold rolled steel (Bethlehem Steel.)  Being able to execute - even execute really, really well - is not a long-term viable strategy.  Eventually, innovation will create market shifts that will kill you.” Chris Rakowski in the article “Take the money and Run” said. This is exactly what happened to Dell, as soon as Dell realized...