Dell's Business Down Into Four Groups

1111 Words Oct 27th, 2014 5 Pages
Introduction
Dell, Inc. is a multinational computer technology company that was founded in 1984. It is the third largest personal computer manufacturer in the world. The company became a public company in 1988, but then in 2013, became a private company once again (Dell).
Dell breaks its business down into four groups: its core group is End-User Computing (desktop PCs, notebooks and tablets.) More than 60% of the company’s revenues come from PCs (Guglielmo). The newest groups, Enterprise Solutions (servers, networking, and storage,) and Software and Services are the fastest growing and most profitable (Dell) (Guglielmo).
In its earlier years, Dell pioneered the use of direct sales on its website and the “build-to-order” process of manufacturing individual personal computers. It also used the just-in-time manufacturing approach to keep inventories of raw materials low. However, in the last several years, this course has been less effective as computers have become low-cost commodities and competition has heated up with high-volume Asian manufacturers, such as Acer and Lenovo.
Michael Dell, the founder of Dell, Inc., recently took the company private, because he would like to concentrate on the Enterprise Solutions, Software and Services divisions. He felt that stockholders did not want to change the core business from the manufacturing of computers. This doesn’t mean he plans to stop manufacturing computers; in fact, he wants to sell computers at a competitive price to get…

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