Case Study of Dell Computer Corporation :: Business Marketing, Case Study, solution

Case Study of Dell data processor CorporationpresentationMichael Dell founded Dell Computer Corporation in 1984 with a impartial vision and business concept that personal computers can be reinforced to order and sold directly to consumers. Michael believed his approach had two advantages (i) by passage distributors and retail dealers eliminated the markups of re cheaters, and (ii) relieve oneselfing to order greatly reduced the costs and risks associated with carrying grand stocks of parts, components and finished goods. Its build-to-order and dole out-direct approach proved appealing to growing numbers of customers in the mid 1990s as global PC sales rosebush to record level. In 1998, it was already the 3rd manufacturer in the join States with a 12% share of PC market place and a just about 6% share worldwide. The beau mondes fastest growing market for the past several quarters was Europe. Even during the Asia economic woes in the earlier(a) 1998, Dells sales in Asia rose 35%. Its sales at the Internet Web site were about $5 one thousand thousand a day and expected to reach $1.5 billion annually by the year-end 1998. Since 1990, Dells stock price had exploded from 23 cents per share to $83 per share in May1998 with a 36,000% increase and was the confidential information performing big company then. Dells principal products include desktop PCs, notebook computers, workstations, and servers. Its products and services were sold in more than one hundred forty countries. The sales of desktop PCs alone accounted for about 65% of Dells total revenues while the rest accounted for about 33%. In early 1988, the company has 16,000 employees.Dells Background and VisionDell Computer was first known as PCs Limited in 1984, selling PC components and PCs under the brand name PCs Limited. Dells strategy was to sell directly to end users by eliminating the retail markup, Dell was able to sell IBM clones at about 40% below an IBM PC price. By 1985, the company w as assembling its own PC designs and had about 40 employees. Sales had reached $33 million by the year ending 1986.Michael Dell sought to castigate the companys business model, add needed production capacity, and build a bigger, deeper management staff and corporate infrastructure while at same time keeping costs low. It first international offices were open(a) in 1987 and was renamed Dell Computer. In 1998, Dell became a public company, brocaded $34.2 million in its first offering of common stock. Michael Dells vision was for Dell Computer to become one of the top trinity PC companies.