Personal Computer and Dell

Powerful Essays
Case Study # 3
Dell Inc;
Changing the Busines Model (Mini Case)
MGT 504: Strategic Management

Prepared For

Tanvir H Dewan
Course Co-ordinator
College of Business Administration
IUBAT

Prepared By

Group: Indestructible Name | ID # | Program | Dipika Mazumdar | 11104017 | MBA | Md.Heron Mia | 11304035 | MBA | Md.Zainal Abdin | 11304037 | MBA | Md.Mofigul Islam | 11304028 | MBA | Syed Badrus Sattar | 11304025 | MBA | Md.Yeasin | 12104026 | MBA | Md.Rajib Hossain | 12104021 | MBA | Md.Shohel Rana | 11204001 | MBA | Md.Sharif Hossain | 11104001 | MBA | | | |

IUBAT-International University of Business Agriculture and Technology

June8,2012

Dell Inc:
In 1983, Michal Dell Started his own business while in college. The company he started was PC’s Ltd.Which was the forerunner to Dell Inc, today. Dell started his business with a simple concept which is made to order computer. The computer was to be direct sales to consumer. Dell maximized his profits by bypassing distribution and retailers. Although has product was sold by retailer he soon took product out of the stores and continue to focus on direct sales.Initialy Dell started selling computers by mail and phone order then until 1994 when he started a website to sell his computer. At this point dell became the first computer company to have a website; By 1996the website sells increased dramatically leading the company to be a largest retailer on the internet by 1999.As of day .Dell is the largest personal computer supplier in the world with under 18 percent of the global market.

I. Current Situation
A. Current Performance:
Fiscal Year 2005 ( Dell’s fiscal year ended in early February or late January of the same calendar year) was an outstanding year in which the company earned $3.6 billion in net income on $55.8 billion in net income.
Soon, however, increasing competition and cost pressures began to erode Dell’s margins. Even though the company’s net revenue to $ 2.6 billion in 2007 with a

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