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How Dell Dose It

Submitted by Kindosen on September 25, 2006

Category: Book Reports
Words: 1928 | Pages: 8
Views: 189
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Chapter Nine

Know how to grow

“One of the three computers sold in the US. is a Dell. Hopefully soon, that will be one out of two”. (Michael Dell.2004)

Since its beginning, Dell Inc. has been in an almost permanent hyper growth. Because of that it’s been crucial for Dell to understand how to handle fast growth, and its developed strong developed strong strategies to do that. Because growth is such an issue at Dell, watching Dell offers clearer lessons on handling growth than you’ll find elsewhere.

Going direct was Dell’s original inspiration, but one idea wasn’t enough to sustain growth for such a big firm, so Dell tried to find more ideas to speed up its growth which lead them to a wide range of product, and different area of distribution of products.


Dell’s Growth

The genius of Dell Inc. is evident in how it’s been able to grow. Here’s the global market share for PC’s in the first quarter of 2005, according to USA Today:

• Dell, 19 percent
• Hewlett-Packard, 15 percent
• IBM/Lenovo,7 percent
• Fujitsu/Fujitsu Siemens, 5 percent
• Acer, 4 percent
• Toshiba, 4 percent
• NEC, 3 percent
• Apple, 2 percent
• Gateway, 2 percent

Dell expects 16 percent growth of sales and earnings for its first fiscal quarter. That’s look interesting comparing to the expected sales and earnings increase of just 6 percent for top rival Hewlett-Packard. For IBM, the forecast is 6 percent sales growth and 12 percent earning growth. Improving sales of servers, storage systems, printers and consumer goods is key to Dell’s goal of being an $80 billion firm by 2008 or 2009.






Grow or Die

Growth in the field of high tech business is not an optional decision but it’s the only alternative which the...

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