The Dell Co. Overview Essay

1453 words - 6 pages

In 1984, Michael Dell was a student at the University of Texas at Austin. With just $1000, he founded the Dell Co. from his on-campus dorm room under its first name, PC Limited. He did this by taking stock components and turning them into IBM-compatible computers, which he sold directly to his customers. By doing so, he felt that he could better understand the needs of the consumer and provide the best possible computing solutions to those consumers.In 1985, the company produced the first computer of its own design, which they called the Turbo PC. Through magazine advertisements, they sold their computers directly to the consumer and did so by custom building each unit. This allowed them to price their computers lower than those of national brands. Their style of doing business was a success and in that year, Michael Dell dropped out of school and led the company to profits of $6 million in its first year.In 1987, PC Limited saw there was a lack of qualified local retailers who could act as service centers for their products so they set up their own on-site-service programs to make up for this. That same year, the company expanded their operation into the United Kingdom. Over the next four years, the company continued to expand into eleven additional international operations. In 1988, the company made its first initial public offering and profits grew from $30 million to $80 million. It was in this same year that they changed their name to Dell Computer Corporation.In 1990, the company continued to grow by focusing on sales made directly to the consumer rather than by selling to warehouse clubs or computer stores. In 1992, Fortune ranked Dell as one of the world's 500 largest companies. In 1999, Dell outsold Compaq to become the largest seller of personal computers in the United States. In 2003, Dell officially changed their name to Dell Inc. On March 23, 2006, Dell Inc. purchased Alien ware, which is a computer hardware manufacturer. Dell has experienced some problems in recent months however losing their hold on the market to Hp who is now ranked at the top of personal computer system sales.The market in which it operatesDell currently operates in several geographic and product markets. Geographically, Dell operates mainly in the Americas, Europe, Middle East-Africa, and the Asia Pacific-Japan regions. Within these regions, Dell sells its products to large corporations, government organizations, healthcare organizations, and educational institutions (Datamonitor, 2006). The Americas region, which accounts for 65.1% of the total revenues for the fiscal year 2006, is the company's largest geographical market. The European and Middle East-Africa regions are second and account for 23% of total revenues for this same time period, followed by the Asia Pacific-Japan regions that accounts for 11.9% of the total revenues (Datamonitor, 2006). With regard to product markets, the company operates within the following product market categories: desktop...

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