Transforming The Computer Industry: Michael Dell

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Michael Dell, the founder of Dell Computers, started his scheme towards transforming the computer industry in 1980. In that year, Dell bought his first computer and took it apart to understand how it was designed and made (Dell & Fredman, 1999). In 1981, when IBM introduced the PC, Dell saw this as a possible opportunity. Michael Dell’s pastime was to take computers apart, rebuild them with different parts, and then sell them directly to consumers. “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). Dell noticed that IBM sold their products via the distribution method, and in 1984, Mr. Dell went into business with his own plan under the name “PC’s Limited.” The computer company renamed the company to Dell Computer Corporation in 1988.
Dell wanted to be like its competitors and it attempted to sell its computers through outlets such as warehouse clubs and magazines, but this didn’t work. Dell decided to change its sales philosophy at this point to a direct-to-consumer method. Once Dell Computers refocused and changed its method of sales, it became the largest PC manufacturer in the US. Dell Computers’ vision then was focused on rapid growth, but the concept was changing into “liquidity, profitability, and growth”, which prevented failure (Dell & Fredman, 1999). This new vision provided Dell with the opportunity to analyze all business categories and to develop profit and loss statements for each section (Dell & Fredman, 1999). Dell Computers handled business as a company who leapt at every new opportunity for profit, which resulted in growth. However, the company...

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... to the product that may make it more popular.

Works Cited

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Dell, Michael and Fredman, Catherine. (1999). Direct from Dell: Strategies that Revolutionized

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Kharif, Olga. (2005). Dell: Time For a New Model? Retrieved February 11, 2007 from

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Smart Computing. (2007). Michael S. Dell. Retrieved February 28, 2007 from

Palmer, Ian, Richard Dunford, and Gib Akin. Managing organizational change: a multiple perspectives approach. 2nd ed. Boston: McGraw-Hill Irwin, 2009. Print.

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