Dell

Michael Dell was born in Houston, Texas on February 2, 1965 and is the founder and current CEO of Dell Computer. He began Dell Computer in his University of Texas dorm room when he realized he could build computers and be the first to sell directly to people making customer service personal and customer prices more affordable. It wasn’t before long that his business bloomed and became a million dollar business. However, because technology changes dramatically on a day to day basis, Dell Computer began to lose its place in 2005 as one of the top competitors in the technology field. Michael Dell at the time was only chairman of his business, but he realized he had to become CEO again and begin to turn things around that will enable Dell Computer to remain in business and stay as a competitor for many.

Today the company is still trying to meet technology demands and hasn’t been able to regain its place in the market field. Michael Dell’s faith towards his company remains strong and he has said, “When you start a company, it’s a very personal thing, I will care about what happens to the company even after I am dead. I just can’t let it go.” (The Economist, 2008)

How does the case describe Dell’s transformed strategy over the years in terms of where to compete, how to compete, and with what to compete?

Customer service has always been a priority for Michael Dell and it’s important that it stays as one. When Michael Dell began his role again as CEO of his company, one of his first strategies to revive his company was to rethink about how he created his direct sales model. According to this model, it allowed Dell to generate computers at a low cost which gave them the competitive advantage and it brought success because it eliminated Dell Computer from having any retail stores and gave the customer the option of ordering their computer by phone or by the Internet. As his analysis was thought through, he realized that this model was no longer working for his company...