Dell Computers's Product Life Cycle

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For this assignment, I decided to go ahead with Dell computers as my company of research, currently the third largest computer manufacturer in the world (Yahoo Finance, 2014). In recent years, Dell Computers have performed remarkably by bringing about many fundamental changes in how computers are sold and thereby reducing the purchase time drastically. As the product life cycle of the personal computer is shrinking rapidly, from 22 months in 1988 to 6 months in 1997 (Mendelson & Pillai, 1998), the price/performance of key components has continued to double almost every 18 months or so, it has become increasingly important to reduce the excess inventory. To gain the competitive advantage, it has become very important to cater the customers with latest products in minimal time. Before going forward I would like to give a brief history of Dell computers and how it evolved to become one of the largest PC suppliers in the world. Dell Computers was founded by Michael Dell in 1984 while he was still a 19 year old student a University of Texas, Austin (, 2014). As a young student he saw an opportunity and leveraging that opportunity he transformed the way how computers are sold and went to form one of the most promising company worlds will ever see. The reason why Dell become so successful and sold PC’s much cheaper than the competition was by elimination the different layers in sales and becoming the direct vendors. The orders were taken on phone and PCs were built as per

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