Dell Computers Strategy

Topics: Personal computer, Dell, Michael Dell Pages: 6 (1703 words) Published: January 18, 2009
Dell Computers Strategy

Global companies play an important role in the business environment, because they connect their business together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.

Dell Inc. has realized that the most efficient path to the customer is through a direct relationship, with no intermediaries to add confusion and cost. With the power of their direct model and their team of talented people, they are able to provide to their customers high-quality, relevant technology, customized systems, superior service and support and products and services that are easy to buy and use.


Dell Inc, was founded as “PC’s Limited” in 1984 by Michael Dell, while still a student at the University of Texas at Austin, with just $1000. From Michael Dell's off-campus dorm room at Dobie Center, the startup aimed to sell IBM-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs. In that year, the company became the first in the industry to sell custom-built computers directly to end-users, bypassing the dominant system of using computer resellers to sell mass-produced computers.

In 1985 the company produced (in China) the first computer of its own design (the "Turbo PC").

In 1986, Dell unveiled the industry's fastest-performing computer, pioneers the industry's first thirty-day money back guarantee, and offers the industry's first onsite service program.

In 1987, PC's Limited set up its first on-site-service programs in order to compensate for the lack of local retailers prepared to act as service centers. Also, the company set up its first operations in the United Kingdom; eleven more international operations followed within the next four years. In June 1988, Dell's market capitalization grew by $30 million to $80 million from its initial public offering of 3.5 million shares at $8.50 a share. The company changed its name to "Dell Computer Corporation" in 1988.

In 1990, Dell Computer Corporation tried selling its products indirectly through warehouse-clubs and computer-superstores, but met with little success, and the company re-focused on its more successful direct-to-consumer sales model.

In 1992, Fortune magazine included Dell Computer Corporation in its list of the world's 500 largest companies.

In1994, Dell launched its new Latitude notebook line with record-breaking battery line. The company launched also Dell Japan and opens its first operations in the Asia-Pacific region, which has become the fastest growing international startup in the company's history.

In 1996 Dell began selling computers via its web site. The company's quiet bid to sell custom-built computers over the Internet quickly became a public revolution when the company announced that sales over had exceeded $1 million per day. Dell introduced also its first custom custom-made web links for customers.

In 1998, Dell became the number two manufacturer and marketer of personal computers in the world. The company grew five times faster than the industry rate. Its stock rises more than 200% - the largest share-price gain in the S&P 500 and the NASDAQ...
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