Dell Case Study

 About Dell:

Dell is Computer Corporation. Michael Dell is founder of dell in 1983 at the age of 18 he put his ambition and started out selling upgraded PCs and add-on components from his dormitory room of University Texas Austin. This room officially becomes Dell Computer Corporation in May 1984. Dell went to Public in June 1888 first in USA than around the world. Michael Dell became youngest CEO of Dell Corporation.

Dell was first company lunched website to provide comprehensive online purchasing tool. They design unique web pages for 44 countries in 21 languages and created customized premier pages for corporate clients to increase purchases from dell's website. Dell was first company who offer free installation of applications software as standards service option. Dell reported daily online sales in USA around 1$ million in 1997 which increase 30$ million in 1999. In, first quarter Dell PC Corporation was rank number two in the fastest growing among all major companies system in USA and worldwide with more than 26000 employees. However, Dell was not able to remarkable growth in China's market. In 1999 Dell ranked number seven in china's PCs market.

 Dell Direct Model:

Dell used direct business-to-customer model, which revolutionized the PC industry in US and worldwide. It was founded simple concept: that by selling personal computers directly to the customers, Dell builds PC only after it receives order from customer via web or call center once order is confirmed, it relay to its supplier details of components required, all components are delivered at factory and complete computer is shipped out, all within few hours Dell could understand their needs and provide the most effective computing solution to meets those needs.

Dell directly with customer meant it knew exactly what is customer wanted. Dell had main three golden rules: disdain inventory, always listen to customer and never sell indirectly. Dell chose to lead a price / performance revolution from the bottom up, bringing new technology at affordable prize to the widest possible group of customers. Dell had applied an expansion strategy that involved selective introduction of direct model, country by country. Dell opened sales headquarters in different 33 countries and served customers in more than 170 countries and territories around the world.

In the Asian Market computer were sold trough vendors, hence there was an increase in operating cost and price of PCs.

Direct sales were new profession in china it was difficult to find experience staff who could direct sales in China.

In 1999 China was fifth largest pc market where Dell needed to break its position in the market. Dell had to target large companies to grow its business in china.