Embry Riddle Aeronautical University
October 6, 2012
Dell Computer Corporation The Dell Computer Corporation was founded in 1984 by Michael Dell from his dorm room at the University of Texas at the age of 19 with $1000. The original name of the company was PC’s Unlimited. The corporation was started with a simple premise as its basic foundation: so that personal computers could be built and sold directly to customers and by doing this, Dell could address their specific needs and provide the best computing solutions that meet those needs (Cuizon, 2009). Dell Computer Corporation relies on its Direct Method to manufacture and sell its products to the consumers. This strategic model enables Dell to directly interact with customers providing them with fast production and distribution. The Direct Method provides two distinct advantages (Cuizon, 2009): 1) Reducing marketing and sales cost by eliminating markups of distributors and retailers. 2) Building to order reduced inventory costs and risks of retaining inventories.
Dell Computer Corporation believes it has the most efficient strategic management business model. Strategic management is the process by which a firm manages the formulation and implementation of its strategy (Carpenter & Sanders, 2009). Dell Computer Corp. strategy was built around a number of core elements: build-to-order manufacturing, partnerships with suppliers, just-in-time components inventories, direct sales to customers, award-winning customer service and technical support, and pioneering use of the Internet and e-commerce technology (Dell, 2012). Management believed that a strong first-mover advantage accrued to the company from its lead over rivals in making e-commerce a centerpiece in its strategy (Dell, 2012).
This study will research Dell Computer Corp. business strategy with focus on vision and mission, goals and objectives, strategy, strategic analysis, and strategic leadership.