COMPANY BACKGROUND Dell traces its origins to 1984, when Michael Dell created PCs Limited while a student at the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-compatible computers built from stock components. Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family. In 1985, the company produced the first computer of its own design, the "Turbo PC", which sold for $795. PCs Limited advertised its systems in national computer magazines for sale directly to consumers and custom assembled each ordered unit according to a selection of options. The company grossed more than $73 million in its first year of operation. …show more content…
Nowadays it products vary from different models of laptops, notebooks, desktops and all-in-ones, printers, TVs and home theater, cameras, monitors, phones and tablets, and many others, including the technical support, services and security. Dell service and support brands include the Dell Solution Station, Dell Support Center, Dell Business Support (a commercial service-contract that provides an industry-certified technician with a lower call-volume than in normal queues), Dell Everdream Desktop Management and Your Tech Team. Dell products are sold in more than 170 countries all around the globe. Some of those include the USA, Canada, the UK, India, Australia and others. The less important country markets are Russia, Germany, Austria, Belgium, Finland, France, Poland, Portugal, South Africa, China, Brazil, Ireland etc. Until the early 1990s, Dell operated with sales and service programs aimed at just two market segments—high-volume corporate and governmental buyers and low-volume business and individual buyers. But as sales took off in 1995-1997, these segments were subdi¬vided into finer, more homogeneous categories that by 2000 included global enterprise accounts, large and midsize companies (over 400 employees), small com¬panies (under 400 employees), health care businesses (over 400 employees), federal government agencies, state and local government agencies, educational insti¬tutions, and individual consumers. Many of these cus-tomer segments were
Dell. Dell’s products—computers, servers and printers—are commodities. Dell tends not to develop the technologies underlying these products. Instead, it purchases the components from firms that develop the technologies (semiconductors and computer software). Dell’s direct-to-customer marketing strategy is not unique, but the extent to which Dell performs this strategy better than anyone else in the industry gives it a competitive advantage. Its size, purchasing power, quality control, and efficiency permit it to operate as a low-cost provider.
Dell’s target market consists of personal computer users and corporate users. Dell is known for their ability to build computers suited to their customers needs. Because their largest customer base is marketed online, their geographic area is unlimited. Since technology is rapidly progressing and moving away from traditional PC’s, Dell has to diversify their products.
It is indicated in the proposal that the company has potential given its product superiority in the market to increase profits through tapping into markets in the developing world. It has been researched and ascertained that the market for computers has not been fully exploited. Dell Corporation has the potential and capacity to venture in the developing world market and increase its sales and revenues.
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.
Second, Dell has a rapid-response system for providing customer service. This interactive real-time communication system can be accessed by telephone or computer for personal or automated technical and customer support in dealing with computer problems. This service is toll free 24 hours a day, seven days a week throughout the world in multiple languages. Dell monitors these service interactions in order to construct maintenance profiles on each piece of equipment and the appropriate instructions for its use, and to develop appropriate repair sequences for each type of problem for use by its live and automated repair processes. Such profiles allow Dell to warn customers of potential problems, develop clear problem correction routines, and access equipment and worker performance in manufacture and assembly. This interactive customer service system has won Dell awards from Fortune Magazine, PC World Magazine, Windows Magazine, and Best Buy Stores as the number one computer firm in customer service.
In 1988, Dell brought its technology to the public. After four years of business the company began introducing its products to the general public worldwide. By 1991, the company’s international sales had doubled for the third year in a row. Dell began tapping into other aspects of the computer market in 2003 with the introduction of Dell printers. Twenty-one years after being founded, in 2005, Dell tops Fortunes “America’s Most Admired Companies” list. (Company Heritage)
Dell was founded in 1984 by Michael Dell and it’s headquarter is located in Round Rock, Texas. Dell Inc develops, design, manufactures, markets, sells, supports computers and related products and services. It is the one of the largest technological corporation in the world. Almost 48% of employment is in United States and rest of 52% of its employment in other countries. Dell offers its services to almost all kind of market such as corporate businesses, government, education, healthcare organizations, law enforcement agencies, small and medium-sized businesses, individual customers, and retailers. Its product line include personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras,
The founders thought the dell’s successful for three reasons: direct sales model, VMI and JIT model, the sharing of information.
Dell is the second world largest PC market. The company holds a market leader positioning in the PC manufacturing world some of the Strengths are:
Dell grew during the 1980s and 1990s to become (for a time) the largest seller of PCs and servers. As of 2008[update] it held the second spot in computer-sales within the industry behind Hewlett-Packard. The company currently sells personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers.
For many years the Dell Corporation has been the fastest growing entity in the computer industry and is considered a pioneer in direct marketing. With the Pc industry being such a unique industry with its super fast product life cycles and having to keep up with continuous innovation, it is one of the most difficult industries to maintain a competitive edge. From the beginning Dell has been focused on customer service by understanding the customer’s
The Managerial Economics of Dell Incorporated “Our business is about technology, yes. But it 's also about operations and customer relationships.” (Dell, n.d.). Dell Incorporated produces electronics products, including, but not limited to; laptop computers, desktop computers, audio equipment, monitors, and printers. Michael Dell dropped out of college in his freshman year in 1984 and founded his new computer business under the name of PC 's Limited with $1,000 and a vision for designing, manufacturing and selling technology. Within four years, the company was renamed Dell Computer Corporation and went public. Within this time, Dell raised its market capitalization from $1,000 to $85 million. In 1992, Dell debuted on the Fortune 500, which made Michael Dell the youngest CEO leading a Fortune 500 company. By 1999, Dell was ranked No. 1 in PCs in the United States, No. 1 worldwide in PCs for large and medium businesses, and No. 1 in worldwide workstation shipments. By the year 2000, dell.com had reached sales of $40 million per day and by 2001, Dell became the No. 1 computer systems provider worldwide. In 2006, Dell became the first in the industry to offer free product recycling for consumers worldwide. And in 2013, Michael Dell and the private equity firm, Silver Lake Partners, bought back Dell from public shareholders, becoming a private company once again. Between 1984 and 2013, Dell has designed, manufactured,
Supply-chain management – in order to obtain market share in the U.S. and abroad, the company would need to visit malls, stores, and shopping districts where their customers frequented. Dell started to make its models available in specific, large retail stores in the United States, the Ukraine, Japan,
1984 — Michael Dell discovered PC 's Limited with $1,000 and an amusement changing vision for the innovation business.
Earlier Dell didn’t manufacture any of the parts on its own. It mainly dealt with assembling the right products. It provides IT solutions and services along with the recovery of the asset, financing, infrastructure consulting, support, system integration and training.