Dell Case Study

In: Business and Management

Submitted By dhgaafar
Words 5002
Pages 21
Dell company was found in 1984 by Michael Dell at age 19, he was a student living in a dormitory at the university of local retailers, added features such as more memory and disk drivers , and sold them out of the trunk of his car
He withdrew 1000$ from his personal savings, used his car as collateral for a bank loan, hired a few friends, and placed ads in the local newspaper offering computers at 10% -15% below retail price. Soon he was selling 50.000$ worth of PCs a month to local businesses. Sales during the first year reached up to 600,000$ and doubled almost every year thereafter. Dell left school in his freshman year to run the business in full time.
Dell began assembling his own computers in 1985 and marketed them through ads in the computer trade publications. In 1987 his company witnessed tremendous change it launched its first catalog, initiated a field sales force to reach large corporate accounts, went public , changed its name from PCs limited to Dell Computer Corporate , and established its first international subsidiary in Britain . Dell was selected as the entrepreneur of the year by Inc. in 1989, man of the year in 1992 by PC Magazine, and CEO of the year by Financial World in 1993.

In 1992 the company was included for the first time among the Fortune 500 roster of the world's largest companies. By 1995 with sales nearly 3.5billion dollars , the company was the world's leading direct marketer of personal computers and one of the top 5 PC vendors in the world . In 1996, Dell supplemented its direct mail and telephone sales by offering PCs via the internet at

By 2001, Dell ranked first in global market share and number 1 in the United States for shipments of standard Intel architecture servers. The company changed its name to Dell Inc. In 2003 as a way of reflecting the evolution of the company into a diverse…...