Dell Case Study
Identification of Customers, Markets, Products, Competitors
Dell Computer Corporation was established in 1984 and today ranks among the world 's largest computer systems companies. Dell pioneered the concepts of selling personal computer systems directly to customers; offering build-to-order computer systems; and providing direct, toll-free technical support and next-day, on-site service. The company designs and customizes products and services to end-user requirements, and offers an extensive selection of peripherals and software (Thompson, Strickland, Gale). Dell 's complete range of high-performance computer systems include: Dell Dimension and OptiPlex desktop computers, Latitude notebook computers, and Power Edge network servers. The company s products and services are sold in more than 140 countries and territories to customers extending from major corporations, government agencies and medical and educational institutions to small businesses and individuals. The company employs approximately 11,000 people. Headquarters are located in Round Rock, Texas, with manufacturing facilities in Austin, Texas; Limerick, Ireland; and Penang, Malaysia (Dell). The company was plagued by management changes during the mid-1980s. Renamed Dell Computer, it added international sales offices in 1987. A year later it started selling to government agencies and added a sales-force to serve larger customers. That year Dell went public in a 34.2 million offering (Hoovers).
Dell tripped in 1990, reporting a 64 drop in profits. Sales were growing, but so were costs, mostly because of Dell 's efforts to design a PC using proprietary components and RISC chips. Also, the company 's warehouses were oversupplied. Within a year Dell turned itself around by cutting inventories and coming out with eight new products. Dell entered the retail arena by letting Soft Warehouse Superstores now CompUSA in 1990 and office supply chain Staples in 1991 sell its PCs at mail-order prices.
Dell Computer Corporation was established in 1984 and today ranks among the world 's largest computer systems companies. Dell pioneered the concepts of selling personal computer systems directly to customers; offering build-to-order computer systems; and providing direct, toll-free technical support and next-day, on-site service. The company designs and customizes products and services to end-user requirements, and offers an extensive selection of peripherals and software (Thompson, Strickland, Gale). Dell 's complete range of high-performance computer systems include: Dell Dimension and OptiPlex desktop computers, Latitude notebook computers, and Power Edge network servers. The company s products and services are sold in more than 140 countries and territories to customers extending from major corporations, government agencies and medical and educational institutions to small businesses and individuals. The company employs approximately 11,000 people. Headquarters are located in Round Rock, Texas, with manufacturing facilities in Austin, Texas; Limerick, Ireland; and Penang, Malaysia (Dell). The company was plagued by management changes during the mid-1980s. Renamed Dell Computer, it added international sales offices in 1987. A year later it started selling to government agencies and added a sales-force to serve larger customers. That year Dell went public in a 34.2 million offering (Hoovers).
Dell tripped in 1990, reporting a 64 drop in profits. Sales were growing, but so were costs, mostly because of Dell 's efforts to design a PC using proprietary components and RISC chips. Also, the company 's warehouses were oversupplied. Within a year Dell turned itself around by cutting inventories and coming out with eight new products. Dell entered the retail arena by letting Soft Warehouse Superstores now CompUSA in 1990 and office supply chain Staples in 1991 sell its PCs at mail-order prices.
Cited: Dell Company website: www.dell.com Hoovers website www.hoovers.com National Public Radio http://www.npr.org Thompson, Strickland, Gale "Crafting and Executing Strategy" 14th edition McGraw-Hill, New York. 2005 Wikipedia http://en.wikipedia.org/wiki/Dell_Computer