Dell Case Study

A student at the university of texas at austin by the name of michael dell founded the company as PC's limited. He started trading in the belief that if customers got these pc's directly and if there was a direct contact with the customers, you could understand much better of what customers needs are. Micheal dell dropped out of college to focus full time on his business which he started after getting $300,000 from his family. In 1985, the company produced the first computer of its own design called the "turbo PC". PC's limited advertised its systems in national computer-magazines for sales directly to consumers, and custom-assembled each ordered unit according to a selection of options. One of the advantage of this PC was that it was cheaper than those of retail brands, and customers put the parts themselves. Although Dell was not the first company to try this model or technology but it certainly was the first to succeed. The company grossed more than $73 million in the first year. The good thing about this model was that it was custom made. in 1988 the compnay changed its name to " Dell computer corporation". In 1990 Dell tried doing something new again, which was that they tried selling computer indireclty through warehouse and computer superstores, but didn't become a big hit. The company didn't get a good feedback on this new technique that they tried, which made the company re-focus on more sucessful direct consumer sales model. As time went on dell tried using different techology to improve the company more, some times the new ideas were not a big help, while sometimes it helped the company alot. in 1992, Fortune magazine included Dell Computer Corporation as one of the top 500 companies. In 1996, Dell started selling computers via its web site. In only three years dell overtook compaq and became the first largest seller of personal computers with $25 billion in revenue in the January 2000. Dell became a huge name and in 2002 Dell attempted to expand by selling not only computers but is now selling with the introduction of televisoins, and digital audio players, small Dell brand printers for small office use, and so many other products like laptops etc, Because Dell was selling more than just computers the company decided to change its name to " Dell Inc". DEll now offers a range of product categories, including desktop computer systems, storage, servers and networking products,