Computer Engineer

computer giants. It was matter of time and other companies took on IBM. Even hardware

Looking at the figure above, Hewlett-Packard leapfrogged over Dell to recapture the lead as the No. 1 PC maker worldwide for the first time since 2008, ranking third after HP and Acer, the growth of Dell is slower than HP and Acer, shipping 526 thousand PCs for a 5.2 percent market share in 08/09 period. It means Dell is facing the big challenge from HP, Acer and other competitors in global

Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in one of his interview, is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to

motherboard and Steve Jobs had to convince a local merchant to sell the board and all the necessary items that a

Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.

* In 1981, IBM entered PC market used Microsoft’s DOS OS and microprocessor and will be Apple best rival for the start on 1981. Jobs forced out in 1985.

• Competition : Apple with propriety architecture had 20% market share, Compac enters in ’82, Dell in ’84,

IBM¡¦s old belief was that personal computers are a vital part of their overall strategy to link personal computers, minicomputers, and mainframes, their preferred product in this line. It was not quick in adapting this belief to the new reality and importance of the PC potential, so during the 1980s and early 1990s, IBM was thrown into turmoil by back-to-back revolutions in the trends of the computer industry. The PC revolution placed computers directly in the hands of millions of people, and then, the client/server revolution sought to link all of those PCs (the "clients") with larger computers that labored in the background (the "servers" that served data and applications to client machines). Both revolutions transformed the way customers viewed, used and bought technology, and both fundamentally rocked IBM.

This analysis describes the case of computer and peripherals industry especially the successful management of Dell Computer Corporation which grew twice as fast as its major rivals like Compaq, Gateway, Hewlett Packard and IBM. The main reason for the success of Dell was their "Direct Model" of selling computers which eliminated all traditional channels like distributors, resellers and retailers. Traditionally all its competitors like IBM, HP, and Compaq etc. used reseller, retailers and distributors to sell their computers to end users. IBM was the first company to launch its PC in 1981 and soon held 42% of the market. But the growth of IBM proved to be short

Dell started in the dorm room of Michael Dell with the name PC’s Limited in 1983. He then dropped out of the University of Texas to build computers from common stock computer components. Dell manufactures and designs their computer systems and services globally. Today, Dell employees more than 138,000 employees worldwide, with a third of these employees in the U.S. Dell’s revenues (as of February 3, 2017) are $74 Billion. Dell has a presence in over 180 countries, 1,800 service centers, and 25 manufacturing locations. One of Dell’s goals is its Well at Dell, this program provides on-site health clinic and Ergonomic programs, life coaching, and annual health risk assessments for all employees.

Dell Computer Corporation, founded in 1984, designed, manufactured, sold, and serviced high performance personal computers (PC’s). Its core strategy, and advantage over competitors, was selling directly to customers. In 1996, Dell reported an impressive growth in sales of 52%.

During the mainframe system era, IBM’s competitors began selling cheaper and high performing IBM compatible central processing units that posed a threat to the company. Entry of Japanese competitors posed a threat to IBM because they had the technical capability to build a powerful computer that matched IBM’s mainframe system. Customers began buying clones from competing companies who promised

Dell was founded by Michael Dell in 1984, while schooling at the University of Texas in Austin. Direct sales model was first adopted: Computers were first sold over the phone and they were built according to the customer specifications (Kraemer K. L, 2000). From a student’s personal company selling no more than 100 computers in its first years of existence, it became a big company of more than 35.000 employees and over 25.000 million dollars sales in 2000 (Koehn, 2001), competing “giants” such as IBM and HP. In 2010, Dell ranks fifth in the computer industry (World's Most Admired Companies, 2010).

But this growth oriented strategy did come at a price. In August 1993, Dell reported a loss of 76 millon dollars for the second quarter, 71 milion of which was due to the excess

2005 — Dell best the rundown of "America 's Most Admired Companies" in Fortune magazine.