Matching Dell

This case study mainly gyrates the Dell company’s niceties, such as how it comes in the picture, back in 1984, how Michael Dell (founder) makes it to the top, what strategies he used over the time to be there on the top, which markets he selected (target market), what’s the special about the Dell, who are its rivals, how they differ from Dell, what are the reasons that dethrone the Dell from the game by its rivals from the top position, future remedies and so on.

How and why did the personal computer industry come to have such low average profitability?

Present CEO and chairman of the board Michael Dell founded Dell in 1984, as a leading technology provider that designs, develops, manufactures, and supports PCs, software and peripherals, storage and servers, and associated services. With operations in four geographic areas and additional business centers and manufacturing sites in more than 20 locations around the world, Dell is able to reach more than 24,000 retail locations worldwide. Dell’s ability to process in-depth customer knowledge and the tailoring of solutions to the specific customer, through a direct customer sales model, catapulted the company in 2008 to the top PC provider in the United States and second worldwide in terms of sales.

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

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.

The proposal presented herein gives the background information of Dell Computers Corporation highlighting the current operation for the manufacture of computers. The proposal highlights the potential of the company to increase its market share and profitability through change of its culture from order based to inventory base.

Founded in 1984 by Michael Dell with the aim of building relationships directly with customers. Dell is a premier provider of PC products and services sought by customers worldwide to build their information technology and internet infrastructures. Through its direct business model it designs, manufactures and customises products and services to customer requirements and offers an extensive selection of software and peripherals.

Dell Company has a successful business strategy. As it is following cost leadership strategy. Its success story is hidden in cost proposition, delivery, and unique customization. In response to the high performance and better chances for growth Dell is applying two way strategy parallel to one another.

Dell incorporation is a well known name in households and organizations everywhere. This is because Dell is the largest mail order computer vendor in the world due to their high reputation or providing quality PCs to the public at affordable and competitive prices. However, this innovation of PCs would not habe been possible without Mr. Michael Dell, the genius behind this prominent and successful company (Anonymous, 2015). From its inception, Dell has managed to gain and maintain a competitive advantage in the industry of computers. The question then is how does Dell gain and retain this competitive advantage?

Michael Dell was the founder member of the Dell Company back in the year 1984. Michael is one of the youngest known developers who have ever lived. He founded the company at the tender age of 19 while he was still a student at the University of Texas. Michael Dell’s journey of success started when he added features to personal computers that he obtained from local retailers. Michael therefore sold such computers that he had modified himself and after making profits he decided to expand his business by hiring more people to help him in the supplies. In 1985, to do the business on a permanent basis, he left school and began to manufacture his own computers and sold them with the aid of advertisement in publications of computers trade (Hunger, 2006).

Michael Dell’s original idea, to allow the customer to order what they want in a computer, was a simple, yet effective one. It allowed Dell to grow quickly and become a leader in the industry. (Treacy, Michael and Wiersema, Fred, January-February 1993 Issue).

In 1984, Michael Dell formed a company now known as dell, Inc. with a strategy to sell build-to-order computers directly to its customers. Customers would have to phone, fax, or order their custom built computers which eliminated the expense of middlemen known as resellers. Between the years of 1986-1993, Dell had to refine its strategy in order to gain market-credibility against its rivals. Such rivals included IBM/Lenovo, Hewlett-Packard, and Gateway.

Dell Computer Corporation’s Michael Dell’s decisive and apparently uncontested vision for the sustained growth of the corporation hinges on advancing the Dell Direct Model. A distinct advantage displayed by Dell versus his closest competitors in this arena-Gateway, Compaq, Hewlett-Packard and Digital Equipment seems to be the synergy created by the integration of marketing communication efforts and their ability to accurately adjust sales staff and production levels to meet the corresponding demand.

Dell Inc. is an American exclusive multinational PC innovation organization situated in Round Rock, Texas, United States, that creates, offers, repairs, and backings PCs and related items and administrations. Eponymously named after its originator, Michael Dell, the organization is one of the biggest mechanical companies on the planet, utilizing more than 103,300 individuals around the world. Dell offers (PCs), servers, information stockpiling gadgets, system switches, programming, PC peripherals, HDTVs cameras printers MP3 players and hardware worked by different makers. The organization is understood for its advancements in store network administration and electronic trade, especially its immediate deals model and its work to-request design to request way to deal with assembling—conveying singular PCs arranged to client details. Dell was an immaculate equipment seller for quite a bit of its presence, however with the obtaining in 2009 of Perot Systems, Dell entered the business sector for IT administrations. The organization has subsequent to made extra acquisitions away and organizing frameworks, with the point of extending their portfolio from offering PCs just to conveying complete answers for big business clients.

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,