Dell

This paper received 25/25 in finance

Dell Computers

Managerial Economics/BUS640

January 25, 2013

Dell is based in Round Rock, Texas and was founded in 1984 by Michael Dell. Dell had a simple concept in mind when he founded this company; selling computer systems directly to the customers. Dell thought that by selling directly to the customer he could understand their wants and needs and provide the most effective computing solutions to meet the customer’s needs (Dell, 2005).

Dell’s strategy in the market place is combining their direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards based technologies (Dell, 2005). By doing this Dell is able to provide their customers with: value, high quality, relevant technology, customized systems, superior service and support, along with products that are easy to use and purchase (Dell, 2005). Dell maintains an intimate or direct customer relationship which is referred to as Dell’s direct business model, because it is the most efficient path to the customer (Dell, 2005). Dell also offers other products and services to their valued customers: customers can purchase custom built products and custom tailored services; low cost; Dell provides a single point of accountability for its customers; and the belief that non-proprietary standards based technologies deliver the best value to customers (Dell, 2005).

Dell’s success is based on its ability to profitably offer its products at a lower price than its competitors, if this does not happen losses may occur; A substantial portion of Dell’s net revenue is dependent upon international sales, which are subject to risks and uncertainties: The success and profitability of Dell’s international operations are subject to numerous risks and uncertainties, including local economic and labor...