Case Study of Dell Computer Corporation :: Business Marketing, Case Study, solution

Case Study of dell computing device CorporationIntroductionMichael dell founded Dell Computer Corporation in 1984 with a simple vision and business concept that personal computers stub be built to order and sold directly to consumers. Michael believed his approach had cardinal advantages (i) by passing distributors and retail dealers eliminated the markups of resellers, and (ii) building to order greatly cut down the costs and risks associated with carrying large stocks of parts, comp peerlessnts and finished goods. Its build-to-order and sell-direct approach proved appealing to maturement numbers of customers in the mid 1990s as global PC sales travel to record level. In 1998, it was already the 3rd manufacturing business in the United States with a 12% share of PC merchandise and a nearly 6% share worldwide. The companys rapid growing market for the past several quarters was Europe. Even during the Asia sparing woes in the early 1998, Dells sales in Asia rose 35%. Its sa les at the Internet Web site were approximately $5 million a day and expected to reach $1.5 one million million annually by the year-end 1998. Since 1990, Dells stock monetary value had exploded from 23 cents per share to $83 per share in May1998 with a 36,000% increase and was the top performing big company then. Dells principal products included desktop PCs, notebook computers, workstations, and servers. Its products and services were sold in more than 140 countries. The sales of desktop PCs alone accounted for about 65% of Dells total revenues while the rest accounted for about 33%. In early 1988, the company has 16,000 employees.Dells Background and peckDell Computer was root known as PCs Limited in 1984, selling PC components and PCs under the brand name PCs Limited. Dells strategy was to sell directly to end users by eliminating the retail markup, Dell was able to sell IBM clones at about 40% below an IBM PC price. By 1985, the company was assembling its own PC designs and had about 40 employees. Sales had reached $33 million by the year ending 1986.Michael Dell sought to refine the companys business model, add take production capacity, and build a bigger, deeper management staff and corporate basis 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 crude stock. Michael Dells vision was for Dell Computer to become one of the top three PC companies.