Dell Computers

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Dell Computers

Dell Computers was founded by Michael Dell, who started selling personal computers out of his dorm room as a freshman at the University of Texas. Michael Dell would buy parts wholesale, assembled them into clones (exact replicas) of IBM computers, and sold them by mail order to customers who did not want to pay the higher prices charged by retailers. Michael Dell was soon making 80,000 dollars a month profit and in 1984 Michael dropped out of university to found Dell Computers. Michael formed in his dorm room the underlying principles, which he would follow throughout the 80’s and 90’s as CEO of Dell Computers.

Since their inception in 1982, dell has had a consistent rise in sales. Dells built to order strategy has enabled them to become a very efficient producer of computers and profitable company. The WebPages for dell computers has enabled dell to be able to reduce expenditures and become more efficient in their overall production and distribution of their products. Dell has been the only company to become an efficient maker of computers using the built-to-order system. Dells stock has become increasingly more valuable to investors over the past five years. Dell’s built-to-order strategy has made them successful in growth, development and stock valuation.

The book “Direct from Dell” gave a lot of background information on, Dell’s strategy, and mail order system as well as statistics on company sales and growth. The book goes into depth when analyzing Dell’s built-to-order system, and mail order system. The book was written before the WebPages became popular so it talks only about what the company expects from it and not about how the web page has performed. The Charles Shwabb investment web page gave a lot of information, which would suit potential investors on Dell. The web page allowed me to view Dell’s financial statements and analyze just how profitable Dell Computers has been and in which areas they showed the most or least profit. The book “The Market Share Reporter” gave me information on how much of the market Dell controls for each product they sell and how they compare to other companies. The book has many graphs, and charts to make it easier to see how much control a particular company has in that area in relation to other competing companies.

Selling computers over the Internet enables Dell to become a more efficient distributor of computers.
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