“Product Development at Dell Computer Corporation”
Duong Hai Dang
Since the day it was founded in 1984, Dell Inc has grown to be a global leader in manufacturing computer and one of the largest technological corporations in the world with more than 100,000 employees. Right from day one, Michael Dell was trying to develop his computer in his school dormitory till the beginning of 2001. Within less than 20 years, Dell Computer Corporation had become the largest direct computer system provider and technical services related to personal computer (PC).
However, along with the successful and achievements, Dell Inc also experienced its tough times. In 1993, after 14 consecutive quarters of growing profit, the firm had its profit went down to half of what it had announced at the beginning of the year. Not stopping at that, Dell’s stock down 28% from $32 per share to $25 per share. The firm also experienced a callback of 17,000 its first line of portables on October 1993. The company also locked them shelf up when they canceled their new line of laptops because of slowing progress and too expensive. In order of getting the company out of its deep hole, a meeting was called between Mark Holliday, Dell’s Portable Division, and the product development team of Dell. The conversation was about a new battery technology from Sony named LiOn that could push Dell back into its original position. However, realizing the LiOn technology hadn’t practical proven yet, Holliday was being put in a really distressing situation.
Not only just facing a critical situation, Dell also needed to make its new move in the computer industry.
II. Dell’s Business Model
In the previous past, the personal computer market was a very competitive environment. However, until 1990’s, this market had become less competitive than the portable computers market by 3%-5%. With the born of new technology, and the rise of portable market, many