Dell's Competitive Advantage

It all began when an up-and-coming 19-year college freshman name Michael Dell brought a Mac computer, took it apart just to understand how it worked. Michael Dell quit school, invested $1000 of his own money and establish PC’s Limited in 1984. PC’s Limited began by buying old computers, making improvements and retailing them for a profit. Once consumers learned more about PC’s, they wanted newer versions of the current PC’s Michael Dell made a decision, he would manufacture his own PC. The timing was perfect, there wasn’t much competition upgrading computer systems. By applying new know-how PC’s Limited’s first PC was called the Turbo PC. The Turbo PC catapulted Dell into the second spot behind Compaq. In 1990 Dell produced more PC than
Dell researched the cost of using this type of circulation methods as a fragment of its ABC system and determined direct sales is much more profitable. Today, Dell only uses direct sales. Launched in 1990s, Dell 's e-commerce business became the advertisement of how a company can reap the benefits from online sales. The original business to make a million dollars in online sales in 1997. Having direct contact with their customers is Dell’s competitive advantage. Dell.com gives potential buyers choices and control by allowing to customers to choose computer speed and the size of their hard drives based on how much they are willing to pay. Dell knows exactly what their customers are ordering and are able to get immediate feedback on how they are doing. As I mentioned earlier, Dell’s strategy was to eliminate the middleman by selling PC’s over the Internet, called the Direct Model. Dell became very efficient in build-to-order manufacturing and continued to target specific demographics. Dell enjoyed success until 1992, their troubles, Dell promptly uncovered, came in part from its efforts to sell its products through Staples, Sam 's Clubs and kiosks. While some pundits were questioning Dell 's future, the company acted authoritatively, exiting the retail channel and resolving to re-enter the laptop market only when that product 's quality matched or exceeded the quality of the Dell desktop. By 1997, the Latitude, Dell 's laptop, had won PC Computing Magazine’s Torture Test twice in three years in addition to winning Business Week 's Industrial Design Excellence Award (Rengan &