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    Analysis of Michael Dell: Part I: Introduction/Background Summary

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    PUSPENDRA RANA
    Michael Dell started Dell Computer Corporation in 1984 with $1,000. The company pioneered selling computers directly to consumers, bypassing retailers. Dell established the industry's first 30-day money back guarantee and on-site service program. It also opened its first international subsidiary in the UK. Rapid growth presented problems for Dell. While listening to customers helped Dell deliver desired products, cell manufacturing led to computers being shipped 5-6 days after orders. Dell addressed weaknesses by opening operations in other countries like the UK. Dell's direct sales model helped access customers directly to understand their needs, fueling innovation. This summary covers the key points about Michael Dell starting and growing Dell Computer Corporation from 1984.

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    Analysis of Michael Dell: Part I: Introduction/Background Summary

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    PUSPENDRA RANA
    56 views2 pages
    Michael Dell started Dell Computer Corporation in 1984 with $1,000. The company pioneered selling computers directly to consumers, bypassing retailers. Dell established the industry's first 30-day money back guarantee and on-site service program. It also opened its first international subsidiary in the UK. Rapid growth presented problems for Dell. While listening to customers helped Dell deliver desired products, cell manufacturing led to computers being shipped 5-6 days after orders. Dell addressed weaknesses by opening operations in other countries like the UK. Dell's direct sales model helped access customers directly to understand their needs, fueling innovation. This summary covers the key points about Michael Dell starting and growing Dell Computer Corporation from 1984.

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    Analysis of Michael Dell

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    Michael Dell started Dell Computer Corporation in 1984 with $1,000. The company pioneered selling computers directly to consumers, bypassing retailers. Dell established the industry's first 30-day money back guarantee and on-site service program. It also opened its first international subsidiary in the UK. Rapid growth presented problems for Dell. While listening to customers helped Dell deliver desired products, cell manufacturing led to computers being shipped 5-6 days after orders. Dell addressed weaknesses by opening operations in other countries like the UK. Dell's direct sales model helped access customers directly to understand their needs, fueling innovation. This summary covers the key points about Michael Dell starting and growing Dell Computer Corporation from 1984.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    56 views2 pages

    Analysis of Michael Dell: Part I: Introduction/Background Summary

    Uploaded by

    PUSPENDRA RANA
    Michael Dell started Dell Computer Corporation in 1984 with $1,000. The company pioneered selling computers directly to consumers, bypassing retailers. Dell established the industry's first 30-day money back guarantee and on-site service program. It also opened its first international subsidiary in the UK. Rapid growth presented problems for Dell. While listening to customers helped Dell deliver desired products, cell manufacturing led to computers being shipped 5-6 days after orders. Dell addressed weaknesses by opening operations in other countries like the UK. Dell's direct sales model helped access customers directly to understand their needs, fueling innovation. This summary covers the key points about Michael Dell starting and growing Dell Computer Corporation from 1984.

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    Analysis of Michael Dell

    Part I: Introduction/Background Summary

    In 1984, Michael Dell invested $1,000 in start-up capital to register his business as
    Dell Computer Corporation, which was known as PC's Limited. The company the
    first in the industry to sell directly to end-users by passing the dominant system of
    using computers resellers to sell mass-produced computers. Dell Computer also
    pioneers the industry first thirty-day money back guarantee. It became the
    cornerstone of Dell's commitment to expand its service offerings, superior
    customer satisfaction, and the industries first on site service program. It also
    established its first international subsidiary in the United Kingdom, and raised $30
    million in its initial public offering.

    Part II: Problem Identification

    The problem with Dell Inc. was the rapid growth within the company in their
    beginning stages.

    Part III: Researching Internal and External Factors

    Dell's strengths were oriented around listening to the customers, responding to


    the customers, and delivering what the customer wanted. The direct relationship
    was first through telephone calls, then through face-to-face interactions, and now
    through the internet. It has enabled them to benefit from real-time input from
    real customers regarding products and future products they would like to see
    developed. The company also doesn't use reseller or retail channels because
    every computer is built-to-order, which allows less inventory. The direct model
    allows them to take the pulse of whatever market and provide the right
    technology for the right customers.

    Dell Inc. weakness was cell manufacturing because their assembled computers
    were being shipped five to six days after the order was placed. It is an inconvenience
    for the customers to always send their computer away to have it repaired. First,
    they are left without internet access. Second, the time it reaches Austin, Texas,
    have it repaired, and shipped back can take days. The company opportunities were
    the Dell U.K. that open business in 1987 and in that country it was a lot of
    companies selling cheap computers. Dell Inc. strides on loyalty among customers
    and employees, and that could only be derived from having the highest level of
    service and performing products. Segmentation within the company enables
    them to measure the efficiency of the business in terms of assets use. Dell Inc.
    evaluates their return on invested capital in each segment, compare it with other
    segments, and target what the performance of each should be.

    It became a great way to identify what needed to happen for them to reach their
    full potential in each business.

    Lesson we can learn :-

     Innovate when you see an opportunity.


     Fuel your passion.
     Failure is a part of life.
     You can learn as you go.
     Focus on your dreams.
     Find a target market, and don't try to please everyone.
     Define your success.
     Have courage in the face of danger.

    Conclusion :-

    The most remarkable feature of Dell's supply chain management is its direct sales
    model, meaning that it accepts orders directly from the customers, without any
    resellers involved. This model helped the company access its customers and study
    their needs directly.

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