Dell, An Innovative Change

Dell, An Innovative Change

History of Dell

Michael Dell, who is the founder of Dell Computers, began his venture towards revolutionizing the computer industry in 1980. In 1980, Dell purchased his first computer; an Apple II, and took it apart to understand how it was designed and made (Dell & Fredman, 1999, p. xi). In 1981, IBM introduced the Personal Computer (PC) and Dell saw this as a business opportunity. Dell switched from the Apple computer to the IBM PC and began to learn all of the possible components. Michael Dell’s hobby was to disassemble computers, rebuild them with improved components, and sell them directly to the user according to the biography by Mr. Dell in Smart Computing (2007). “Traditionally, in the computer industry, manufacturing companies built computers, which were distributed to resellers and dealers who sold them to businesses and individual consumers” (Dell & Fredman, 1999, p. 11). Dell noticed that IBM also sold their computers to through the distribution method, and in 1984, Mr. Dell made his business venture official. The original name for Michael Dell’s company was registered in the state of Texas as “PC’s Limited.” The organization transformed and renamed the company to Dell Computer Corporation in 1988.

In the beginning, the PC’s Limited company was purchasing stripped-down computers, upgrading them and then selling them for a profit (Dell & Fredman, 1999, p. 14). Dell & Fredman (1999) indicated “People were becoming more interested and more knowledgeable about computers” (p. 14). The consumers expected upgraded versions of the IBM personal computer, but IBM had not yet produced an upgrade. Michael Dell decided to create his own personal computer with the vision of enhancing PC Limited’s business. When Dell began to build its own computers, it was the perfect opportunity and timing because there was minimal competition in upgrading computer systems. A new upgrade, computer chips, simplified the PC design because the new design only required a few chip sets and some skilled engineers (Dell & Fredman, 1999, p. 14). By implementing new technology through ASIC (Application Specific Integrated Circuit) chips, this chip helped ease the company’s entry into the PC world. After designing their first major PC, known as the Turbo PC, Dell became the second largest PC manufacturer in the U.S. with Compaq as the leader. The new enhancements proved Dell to be a strong contender in the PC market and Compaq was prompted to imitate Dell by entering the custom computer business (Saunders, 2000).