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Fall Of Dell Computers

The personal computer is one of the most important developments of the 20th century. Its importance as a product, category and industry continue today.
 
Hindsight is always 20/20. But try to imagine going back in time.
 
Back in 1980 if I asked a multiple choice question about the emerging personal computer industry, what would your answer be?
 
What company is most likely to dominate the personal computer market?
     (a) IBM, the company that invented the mainframe computer?
     (b) Apple, the leading home computer?
     (c) Sony, the leading electronics brand?
     (d) Digital Equipment, the inventor of the minicomputer?
     (e) Dell, a company started by a sophomore at the University of Texas?
 
Most people would probably answer IBM. With the rest answering Apple, Sony or Digital Equipment. I doubt anyone would have said Dell.
 
It isn’t logical, rational or reasonable to believe that a nerdy student from the University of Texas could take on some of the biggest companies and brands in the world and win.
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But of course he did. He took them all on and won. Michael Dell built Dell Computer into the world’s largest computer company leaving IBM, Apple, Sony and Digital Equipment in the dust.
 
Marketing isn’t logical and marketing doesn’t follow the rules of common sense. Which is why the best way to understand marketing and to predict the future is by studying the past.
 
How did Dell come out of nowhere to dominate the computer market? It wasn’t an accident that Dell succeeded. They succeeded because unlike IBM, Apple, Sony, Digital Equipment or any of the other computer makers, Dell was totally focused.
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Dell focused on one product: the personal computer.
Dell focused on one distribution system: direct.
Dell focused on one market: business.
 
And as a result, Dell became the largest selling brand of personal computers in the world and had the best stock-market performance of the 500 companies in the Standard & Poor’s...