Dell: Returning Back To The Pavilion

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Dell previously known as "PC's Limited" (1984-1988) is a multinational corporation that designs, creates, and produces personal computers and computer-related products. The company is a major PC manufacturer in the world.

The company began marketing its goods through ads and mail-order catalogues, based on the thesis of designing and selling custom-built PCs directly to consumers. Dell was able to sell high-quality PCs at affordable prices by avoiding the costs associated with conventional retail markets. The business began in a dorm room and has grown to employ over 145,000 people in the United States and around the world.

Dell - Company Highlights

  • Startup Name-Dell Inc.
  • Headquarters-Round Rock, Texas, U.S.
  • Industries-Computer Hardware, Computer Software
  • Founder-Michael Dell
  • Founded-February 1, 1984
  • CEO-Michael Dell
  • Areas served-Worldwide

Dell - About and How it works?

Dell is a global information technology corporation based in the United States that designs, sells, restores, and maintains computers and related products and services. The business, named after its founder, Michael Dell, is one of the world's largest technology companies, employing over 165,000 people in the United States and around the world. It is one of the world's largest manufacturers of computer hardware.

Dell sells computers, servers, data storage devices, network switches, applications, HDTVs, cameras, printers, and electronics, among other things. The company is well-known for its supply chain management and electronic commerce technologies, especially for its direct-sales model and "build-to-order" approach to manufacturing and distributing individual PCs customized to customer requirements.

Dell - Logo and Meaning

Apart from the slanted 'E,' the Dell logo is a simple expression. Michael Dell, the company's founder, began his company with the aim of "turning the world on its head." When design firm Siegel+Gale created the company logo in 1984, they chose to reflect this by slanting the letter 'E.'

Dell - Founder and History

Michael Dell is the founder, chairman and CEO of Dell.

Michael Dell

PC's Limited was founded in 1984 by an American, Michael Dell, who was a student at the University of Texas in Austin at the time. Dell began his company in a dorm space, offering personalized upgrades for PCs.

Dell dropped out of school to work full-time on his fledgling company after his family gave him $1,000 in growth capital and he started developing PCs. The Turbo PC, the first computer designed entirely by Dell, was released in 1985 and sold for $795. PC's Limited marketed its systems for sale directly to customers in national computer magazines, and each unit was custom assembled according to a menu of choices. In its first year of service, the company made more than $73 million in revenue.

Michael Dell hired Lee Walker(a 51-year-old venture capitalist) as president and COO in 1986 as Dell's mentor and to put Dell's proposals for the company's growth into action. When the company went public in 1988, Walker also played a key role in hiring members of the board of directors. In 1987, the company changed its name from PC's Limited to Dell Computer Corporation and began spreading internationally. There was a significant rise in revenue as well as capital.

The organization became known for its employees in the best way as profits increased. More and more businesses decided to partner with Dell, and there is no denying that Dell has established itself as one of the best computer manufacturers.

Dell - Mission

The mission statement of Dell says, "Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of Highest quality and Leading technology".

Dell - Business Model

The business has managed to have the largest customer base with a revenue-generating business model thanks to the incredible computer services and goods that are delivered to the people in the best possible way. Customers who visit the business have a variety of requirements. The business model is more concerned with meeting the expectations and requirements of consumers. The company develops a variety of goods based on the needs of its customers.

  • Dell's Business Model is Divided into Several Sections:
  • Large-scale enterprise products and services
  • Public-facing products and services
  • Small and medium-sized business products and services
  • Consumer Products and Services

Dell - Revenue

Dell Technologies Inc. posted a -2.73 percent drop in revenue in the second quarter of 2020, to $22,733.00 M. Dell Technologies Inc's revenue decreased in the second quarter, compared to the company's annual revenue growth of 3.61 percent. Within the Computer Hardware sector, three other companies have achieved higher revenue growth in the second quarter. In the second quarter, Dell Technologies Inc's revenue fell -2.73 percent, placing it at number 1617 overall.

Dell - Funding and Investors

Dell is traded on the New York Stock Exchange under the ticker NYSE:DELL. Their stock debuted at $46.00 in its initial public offering (IPO) on December 28, 2018. Dell Innovators Credit Fund is a single venture capital fund that Dell has raised. On June 7, 2012, this fund was revealed and a total of $100 million was raised.

Dell - Competitors

Dell Technologies top competitors include Hewlett-Packard (HP generates 81% of Dell's revenue), Lenovo (Lenovo has 79,000 fewer employees than Dell), IBM(Compared to Dell, IBM has 241,800 more employees), Apple, Asus and Acer.

Dell - Challenges faced

Dell revealed in 2008 that it would enter the retail industry while maintaining its "direct sale model" and "make-to-order" strategy. Dell was able to function on a low inventory level as a result of this strategy, resulting in a substantial cost savings. Direct selling has also cut out wholesalers and suppliers, lowering prices even further.

Among the many difficulties that Dell faces, one stands out above the rest: forecasting. Forecasting is an important component of supply chain management. Dell has enough stocks to satisfy consumer demand thanks to reliable forecasts. Forecasting like this is conducted ahead of time to ensure a smooth transition between supply and demand. Even a minor forecasting error will result in lost revenue, surplus inventory, and unused inventory.

Dell's greatest challenge right now is its willingness to innovate. Despite the fact that the industry has invested billions of dollars in research and development, the majority of technological progress is currently powered by developers rather than businesses.

Dell also faces significant challenges in maintaining its market dominance, with the unstoppable growth of cloud computing, its complex portfolio of overlapping products, and decreased investment on on-premises infrastructure placing it under pressure to sustain market share gains.

Dell - Growth

From 1997 to 2004, Dell enjoyed steady growth and it gained market share from competitors even during industry slumps. During the same period, rival PC vendors such as Compaq, Gateway, IBM, Packard Bell, and AST Research struggled and eventually left the market or were bought out. Dell surpassed Compaq to become the largest PC manufacturer in 1999. Operating expenses accounted for just 10% of Dell's $35 billion in sales in 2002, compared to 21% at Hewlett-Packard, 25% at Gateway, and 46% at Cisco. As Compaq and Hewlett-Packard (the 4th-place PC maker) merged in 2002, the newly formed HP took the lead but failed, and Dell quickly reclaimed the lead. Dell was the company that developed the most in the early 2000s.

Between the mid-to-late 1990s and 2001, just before Windows XP was launched, Dell earned and retained the highest ratings in PC reliability and customer service/technical support year after year.

Dell - Achievements

For the eighth consecutive year, Ethisphere named Dell as one of the world's Most Ethical Companies.

On the Human Rights Campaign Foundation's annual scorecard measuring LGBTQ workplace inclusion, Dell Technologies receives a perfect score.

In 2019, Fast Company named consumer electronics to its list of the world's most innovative companies.

The Compass Award for Leadership in Accelerating the Circular Economy with Rare-Earth Minerals was given to the winner of the Responsible Business Alliance's Compass Award for leadership in accelerating the circular economy with rare-earth minerals.

Dell was named to Forbes' Best Employers for Diversity 2019 List after a survey of 50,000 Americans employed in businesses with more than 1,000 employees.

Dell Wins High-Tech Supply Chainnovator 2019 by Building a Legacy of Good to Tackle Circular Economy, May 2019.

Dell - Future Plans

The firm is stepping out of the spotlight or re-imagining a modern service-based industry in order to succeed in the future. Michael Dell, the CEO of his namesake company, which he created as a college student 29 years ago, announced in September that he would be taking it private. The intention is to return to the pavilion.

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