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Dell Strategy

1. Introduction

Michael S. Dell, who founded the Dell Computer Corporation in 1984 with nothing more than $1,000 and an idea, serves as chairman and chief executive officer of the fastest-growing major computer systems business in the world.

1.1 Company Background

Dell, which was founded in 1984 by Michael Dell, the longest-tenured executive to direct a company in the computer industry, is among the world's leading computer manufacturers that has transformed and diversified into variety of business segments over the years. The company is established on a simple concept: by selling personal and business computer systems directly to customers, Dell could best comprehend their needs and efficiently supply and provide the most effective computing solutions to meet those needs. This direct business model eliminates retailers that add unnecessary time and cost to its extent or can diminish Dell's understanding of customer anticipations.

The direct selling, which has been planned and since then been stuck to, allows company to response speedily and build every system to order and offer customers powerful, richly-configured systems at competitive prices. Dell also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory every four days on average.

Developing over 20 years, the company has always been associated with designing, manufacturing and customizing products and services to satisfy a diversified, not only major, specified also, range of customers including individual customers to wholesale and retailing businesses. The company's philosophy to deal with customers one-on-one has become a splendid management model for other companies. Having gained the market leadership position in computer products and services, Dell's team have always been careful but confident of sustaining and strengthening its marketing strategy of providing standard-based computing...