The paper "How Dell Computer Corporation Grew" is a perfect example of a business case study. Michael Dell was born in Texas in the year 1965, and he was a student in the University of Texas, located in Austin, Texas. In the University, Michael Dell was intending to become a doctor. At the same time, Michael Dell had a passion for computers and therefore his hobby was playing and working with computers, both at the software level and hardware level. With time, his hobby won as he realized that he could make a living out of his hobby.
While at the University of Texas, Michael Dell started selling computers from his dormitory room. As he continually grew his venture, Dell came up with an innovative way of meeting the needs of his customers: he decided to be having close ties with his customers in terms of getting desired specifications and ensuring that he did not need retailers to deliver his products to his customers. Therefore, he ensured that customers gave him the specifications they wanted for their computers and then he would design and deliver the computers to them in person without the need to use middlemen.
In the year 1984, at a tender age of nineteen (19) years, Michael started PCs Limited with a paltry $ 1,000. In twenty-one (21) years, the company has been able to grow into a $30-plus billion enterprise. Today, the company has average earnings of more than $ 40 million daily, and it remains one of the largest commercial sellers of computers on the internet all over the world. Background analysis Family and socio-cultural aspects Michael Dell is married to Susan Dell and together they have three daughters and one son.
Dell has had a relatively normal family life, with his family supporting his investment decisions. Notably, however, his parents Alexander Dell and Lorraine Dell wanted him to pursue medicine with a view to becoming a doctor. However, Dell developed a passion for computers and became hooked on them since junior high. To please his parents, Dell chose to enrol at the University of Texas as a premed student. However, his real interest was computers and therefore, as mentioned above, he bought outmoded and remaindered computers from retailers, upgraded them and sold them from his dormitory room at the University.
Dell became so successful at selling computers off his dorm room that he eventually moved the business from the campus. Dell’ s parents were angered by his decision to drop out of University so he promised to go back if summer sales were disappointing. In the first month of business, Dell made sales amounting to $ 180,000. He never went back for his sophomore year. How Dell Computer Corporation grew After starting PCs Limited due to the success of his college venture, dell realized that the world would soon come to appreciate computers as one of the most prestigious and invaluable commodities and as with other commodities, what matters most is the price at which the commodity is sold and the method and timeliness of delivery.
As explained above, Dell had already devised a way to achieve both goals while at the University; and he did it by cutting the need to involve a middleman in selling his computers. Dell bought computer parts and assembled personal computers himself in order to cut production costs and delivered final products to the customer himself.
As mentioned above, the assembling was done based on the specifications that the customer desired and thus PCs Limited became very popular with customers. The low cost of production that PCs Limited incurred enabled it to sell computers to its customers at a 15 percent discount based on the prices of established brands like IBM. The technique employed by Michael Dell, which is known as the direct model of selling soon revolutionized the computer industry and made Michael Dell a multibillionaire in the process.
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