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Dell Wikipedia


Dell Inc.

Dell Inc. is an American private company that develops, sells, repairs, and supports computers and related products and services. It was founded by Michael Dell as "PC's Limited" while he was a student at University of Texas at Austin. It started as a small business inside Dell's dorm room where he assembled and sold custom personal computers. At some point, Dell dropped out of school to concentrate on this venture of his after he got a $1000 capital from his family. His company then started selling custom made personal computers on a larger scale by advertising his company in tech magazines. His company soon became a hit because of the relatively cheaper prices for computers and great convenience that it provided to its customers, and so as it started grossing in millions, he changed its name to "Dell Inc.". Over the years, Dell Inc. has become a well reputed brand across the globe and is one of the largest technological corporations in the world.[1][2]


Dell faces competition from other technological corporations like Lenovo, Hewlett-Packard Company (HP), and Apple Inc.. Like Hewlett-Packard (HP), Lenovo and IBM, Dell provides business products that include computer servers, data storage devices, PCs and enterprise software. And it faces competition in the personal computer market with Apple Inc.. Competition has not favored Dell all the time; it had been forced to withdraw from smartphone, tablet, and music player markets due to unrivaled products from other companies.[3][4]

Strategy Analysis

What started out as a $1000 company in a college dormitory is now a multi-billion dollar company, a pioneer in the customizable personal computer industry, one of the largest technological corporations in the world. Its rise to prominence was mainly due to its partnership with other technological giants like Microsoft and Intel. It's also due to its ability to reach out to emerging markets like South-Asian countries where affordable computers are desired by the people.
Although this company has a very good brand equity, it is not as prominent as it was few years ago. It did well to capitalize on the need of personal computers when the computer industry was just booming. History has shown that Dell has not had success with smartphones and tablets, which are dominating markets in recent years. The fact that Dell is relying mostly on its personal computer sales for profits should be considered alarming. There is also increased competition in personal computer market where competitive prices are limiting sales. However, Dell still hold an enormous market share globally. Their direct-to-customers business model helped them gain dramatic growth and success. Dell sells personal computers, servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, MP3 players, and electronics built by other manufacturers.
What is interesting about this company is that it just recently turned private, when Michael Dell along with Silver Lake Partners and Microsoft struck a deal to buyout the public shares. This is seen as a step to insure the company stays on track to innovate and create business ventures that would benefit the company in the long run. It also means that the company would no longer need to comply with regulations pertaining to public companies. Thus, the senior leadership team can focus more on improving the company's competitive positioning in the marketplace. This was proved to be true as Dell expressed significant progress and profit after the changes in management system.[5][6][7]