BY TOQEER NASEER

Introduction Before Michael Dell, innovation

was about well-schooled engineers in R&D labs inventing high-margin products and technologies.

Dell instead trained his eye on

finding the most efficient way to get tech products into the hands of the consumers.

He was drop out form university

Perfected the credo— “Cut out the middleman.”

Michael Dell

He is ranked as the 41st richest person in the world on 2012 

DELL did not want the “unsophisticated” customer.

DELL wants to sell to the “educated” customer.

DELL wants the consumer to buy their third or fourth system from DELL. It’s more profitable and easier.

The Future: The power of laptops

became compatible with desktops, because of design, manufacturing

and usage.

Added: Printers, Servers, Projectors, TV’s, Handhelds, Software, Peripherals, Storage, Networking, Workstations and more.

History Dell computer company history

dates back to May of 1984, when Michael Dell, a freshman pre-med student at the University of Texas in Austin, began selling custom-built personal computers out of his off-campus dormitory.

Michael Dell purchased computer parts from wholesale distributors, assembled them into clones of popular IBM computers, then sold these computers via mail order at highly competitive prices.  

1984Dell was created by Michael Dell.

○ Started with the idea to sell directly to consumers.

1985Released the “Turbo”, Dell’s first computer.

1989Dell released its first notebook computer.

1993Dell shifts busies over seas to try to gain

market share.○ Ireland

EuropeMiddle-EastAfrican markets

○ Australia○ Japan

1996 Started selling products on its website.

1997 Recorded 1 million in sales generated from the

internet. 2000

Dell was ranked 1 world wide in shipment of Workstations

2003 Dell is made the official name of the company Continually expanding overseas.

2005 Dell records one of its poorest years in

company history. 2006

Dell acquires Alien Ware

Target Dell currently has a number of

computers that target 2 particular markets.

1. Large- to Mid-Size Business 36 to 50 year old White males Upper-Middle to Upper Class 2. Consumers, Students, Small

Home Office 18 to 35 year old White males Middle Class

Dell team will refocus the advertising and marketing to target 2 particular markets.

1. Women 2. Minorities (particularly African-

Americans, Latinos, and Asians) Both in: • Large- to Mid-Size Business 36 to 50 year old Upper-Middle to Upper Class • Consumers, Students, Small Home

Office 18 to 35 year old Middle Class

Profit Dell, the maker of personal

computers, reported quarterly sales that missed estimates, even as its focus on higher-margin technology helped its profit.

Third-quarter revenue declined to $15.37 billion, Dell said Tuesday in a statement . Analysts had projected $15.7 billion on average, according to Bloomberg data. Net income rose to $893 million, or 49 cents a share, from $822 million, or 42 cents, a year earlier.

Excluding some costs, profit was 54 cents a share, topping the 47-cent estimate.

Dell has ceded market share and concentrated on more profitable corporate technology, including servers, services and networking.

Dell now ranks behind Hewlett-Packard and Lenovo Group in the PC industry, down from first place in 2006.

Dell’s revenue from selling products to the public sector was down 2 percent from a year ago, to $4.4 billion. That figure included an increase in services revenue of 7 percent.

Dell’s sales to consumers fell 6 percent over the same period, to $2.8 billion. Operating income in that segment was $76 million, or 2.7 percent of revenue.

International revenue outside of Canada, Western Europe and Japan rose 11 percent in the third quarter and is up 14 percent for the fiscal year, Dell said.

CompetitorThe computer industry represents fertile ground for

our Inquiry.

The market is highly visible, rapidly growing,

And competitive, with several well-managed

dynamic Firms seeking increased market shares.

In 1998, the $ 148 Billion computer market had

four main segments:

Main Frames, minis, workststions,and personal

computer. Pc Sales represented 46 percent of total

computer sales.

Table 2.1 tracks the performance of the top three

computer firms in market share in the pc market

between 1996 &2001 Utilizing data from Data

quest and international Data.

Pc market share1st quarter1996

1st quarter1997

1st quarter1998

1st quarter1999

1st quarter2000

1st quarter2001

COMPAQ 10.0% 11.5% 13% 14% 13.8% 13.3%

IBM 7.2% 7.3% 7.3% 7% 6.5% 6.0%

DELL 3.4% 5.3% 5.3% 15% 19% 24.9%

Dell’s six year financial performance returns (in billions of U.S dollars)

Dell 2001 2000 1999 1998 1997 1996

sales 31.1 31.8 26 18.2 12.3 7.7

profit 1.2 2.1 2 1.4 1.3 .7

Improvement For Dell, nothing matters more than providing

the best possible service to its customers.

The Dell direct sales model set an industry standard for efficiency and customer satisfaction by connecting directly with Dell customers.

According to this sales approach, Dell builds every system to order, which helps the company to introduce new products and technologies faster than competitors.

Under the Dell model, customers place orders primarily through Dell.com.

Dell call centers that are staffed by sales agents. Dell agents help callers configure and order systems that meet customers’ specific needs.

Dell wanted to enhance the customer experience while increasing the efficiency of its sales model by integrating online and phone-based channels. “In working to optimize.

Dell call centers, They focus on efficient call handling, the stability of our environment, and making sure that their sales representatives are well trained and helpful,” says

Michael Rosenstein, Dell director of global product management marketing, sales marketing services tools. “But instead of an integrated sales tool, what we had was an order management tool and several other stand-alone systems that were used by sales.”

R&D Dell India R&D Center is Dell’s second

largest product development center. Founded in 2001, the R&D Center focuses on software development, Enterprise solutions, international product support, test engineering, and documentation.

The R&D Center has steadily grown over the past five years. By 2002, the design center participated in Dell  Open Manage software development, as well as product, system, and operating system (OS) testing. In 2003, the Center took on additional activities, including storage testing; online diagnostics; and Dell Server Assistant, IT Assistant, and Connections development.

Dell India R&D Center’s state-of-the-art infrastructure includes specialized labs with a network of more than 1,800 Power Edge servers (3G to 9G); a rich set of storage systems; and keyboard, video, mouse (KVM) over Internet protocol (IP) capabilities.

Test Engineering successfully piloted lab-to-lab connectivity between this Center and the Austin Design Center (ADC) in the second quarter of FY 06. Since then, the R&D Center has begun to include hardware from ADC using lab-to-lab connectivity as part of the test block efforts.

The R&D Center labs are also used for product/solution demonstrations for Enterprise customers.

conclusion Dell started as a market leader and still

retains that trait in some areas. With there slipping sales in the U.S.

They are being forced to look at alternative ways of brining revenue to the company, which is a process that they are used to.

I think that they will continue to gain market share and continue to be a large player in the personal computer industry for years to come.