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For the last 20 years Dell Incorporated (formerly Dell Computer, Inc. ... This paper will examine its rise through the industry by taking a brief look at its history and Michael Dell’s innovation philosophy, analyzing its innovative business strategies which has given it the edge on others in the industry, examining its foray into services and new markets, and charting the challenges ahead for the company.
HISTORY
Michael Dell founded Dell Computer in 1984. ...
Michael Dell started his company with only US$ 1,000 of capital. Dell Computer experienced its share of difficulties in the first few years, to the point where some family members and friends wondered whether it had been wise for Michael to drop out of university . ...
By 1990, Dell had captured a significant share of the corporate PC market. ... In the early 1990s, Dell briefly augmented its direct sales by using a retail channel for marketing and distribution, but this was abandoned after a business downturn.
Despite its evolution (with some trials and errors) over the years, Dell has faced the constant challenge of creating and continuously upgrading a world-class manufacturing infrastructure while simultaneously developing a good reputation in the marketplace against bigger and better-known rivals.
Significantly though, Dell did not have to compete directly against the more established PC manufacturers. ...
With the emergence of the Internet, Dell Computer could extend the reach and scope of the direct sales model at a relatively low marginal cost. ... Unlike its major rivals, Dell did not face any channel conflict with resellers or distributors by going online. ...
Not surprisingly, Dell Computer was an early and enthusiastic convert to the Internet. ... At that point, Michael Dell had joined Bill Gates of Microsoft and Larry Ellison of Oracle among those who had become high-technology billionaires after dropping out of university.
Dell now designs, develops, manufactures, markets, services and supports a range of computer systems, including enterprise systems (servers, storage and networking products and workstations), notebook computer systems, desktop computer systems and software and peripherals. Dell now also offers a portfolio of services that help maximize information technology, rapidly deploy systems and educate IT professionals and consumers. In addition, the company now offers various financing alternatives, asset management services and other customer financial services for its business and consumer customers in the United States through Dell Financial Services L. ... , a joint venture between Dell and CIT Group, Inc. ...
INNOVATION
According to Michael Dell, CEO, the innovative thinking which allowed him to move the company ahead in its earlier days is still alive and kicking today: “At Dell, innovation is about taking risks and learning from failure.” He says that although Dell, Inc is well known for inventory management, logistics, supply chain management, and such, that was not always the case. ... For example, one Dell manager in the consumer group came up with the idea to offer installation service to consumers in order to reach people who might be apprehensive about setting up a new computer. To Dell, the idea seemed like it would help out a group of customers, and it made sense from a cost standpoint as well. According to Michael Dell, “We knew from our experience with business customers that when our staff installs a computer, the incidence of setup failures is almost zero.” As a result, Dell says the consumer team threw around an idea, did a pilot with one group of sales people, and found out what worked and what didn’t.
Approximate Word count = 2879
Approximate Pages = 11.5
(250 words per page double spaced)
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