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Computer

Nearly every business in the U.S. and one out of every two households use computers (Hall, 156). This increase in usage of computer proves that computers have affected every aspect of our lives and have become one of the necessities. Many computer developers have contributed to such an advancement and widespread of computer technology. Among them, Dell is one of the most successful computer companies up to dates. With a simple vision and business concept such as direct sales to customers, Dell has managed to provide top quality computers at cheap prices to many people. In addition, Dell has been doing many charities and helped building communities for success in the digital world.

Founded in 1984 by Michael Dell, Dell Computer Corporation was based on the idea that personal computers can be built to order and sold directly to consumers. These approaches had two advantages: elimination of the markups of resellers by passing distributors and retail dealers and greatly reduced costs and risk by not carrying big parts. Its build-to-order and sell-direct approach proved appealing to growing numbers of customers. In 1998, it was already the 3rd manufacturer in the United States with a 12% share of PC market and a nearly 6% share world


Accurate sales forecasts were also keys to keeping cost down and minimize inventories. By maintaining a diligent close relationship with large corporate and institutional customers, and by direct sales, it enabled Dell to keep a finger on the pulse of demand. Market segmentation strategy paved in-depth understanding of customers¯ requirement and expectation. Dell passed that knowledge of forecast demand to suppliers so that they could plan their production accordingly. The management deemed that quality control and streamlined the assembly process to ascertain now new development in component can be used to PC users. Dell sorted out new technology and helped steer customers to options and solution most relevant to their needs. Management also believed the power of advertising and frequently espoused its importance in company¯s strategy.

Michael Dell sought to refine the company¯s business model, add needed production capacity, and build a bigger, deeper management staff and corporate infrastructure while at same time keeping costs low. It first international offices were opened in 1987 and was renamed Dell Computer. In 1998, Dell became a public company, raised $34.2 million in its first offering of common stock.

Dell Computer achieved its status due to its competitive advantage as an integrated PC manufacturer by selling its PCs directly to customer according to their specifications and requirements. Dell employed a shorter value chain, bypassed retailers to eliminate markups, time and cost associated with distribution. It also reduced the high costs and risks associated with carrying large stock of parts, components and finished parts. Dell was able to cus

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Approximate Word count = 1136
Approximate Pages = 5 (250 words per page double spaced)


  

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