Sep 16, 2022
This assignment explores the business model of Dell and how it managed to become one of the world's leading PC companies.
Dell was founded in 1984 by Michael Dell, who was just 19 years old at the time. The company started out as a PC parts reseller but quickly began building its own PCs after recognizing the potential for higher margins. By 1987, Dell had become one of the largest PC manufacturers in the United States.
The key to Dell's success has been its focus on operational efficiency. Dell designs its products with an eye towards ease of assembly, which reduces manufacturing costs. Additionally, Dell sells its products directly to customers rather than through retail channels. This allows the company to avoid the markups associated with traditional retailers.
Dell's direct marketing approach also provides the company with valuable customer data that it can use to improve its product offerings. For example, Dell uses customer feedback to fine-tune the configuration of its PCs. This focus on customer needs has helped Dell maintain a leadership position in an increasingly competitive market.
Looking forward, Dell faces several challenges. The PC market is maturing, and growth rates are slowing. Additionally, Dell must contend with new competitors such as Lenovo, which has been gaining market share in recent years.
Despite these challenges, Dell remains one of the most successful PC companies in the world. Its focus on operational efficiency and customer service will likely continue to serve it well in the future.
(Dell, 2018)
References:
Dell. (2018). About Dell. Retrieved from http://www.dell.com/learn/us/en/04/about-dell?c=us&l=en&s=gen
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