History Of Dell

Mr Michael Dell founded Dell on November 4, 1984 in Austin Texas.
He started Dell with selling computer system straight to its consumer such that they will be able to know the customer demand. Dell started with just $1000. After 4 years, dell expanded greatly and theirs shares were sold at $8.50. Now, Dell Inc. is a privately owned multinational computer technology company based in Texas, Dell develops, sells, repairs and supports computers and related products and services. Dell sells personal computer, server, data storage devices, and all other electronic devices.

When Dell started, they are well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its "build-to-order" or "configure to order" approach, which is their key supply chain strategy, to manufacturing— They took orders through telephone, asking the customer their specification for the product, then, delivering individual PCs according to the customer.

By adapting the “build-to-order” strategy, Dell removed resellers and middleman and was able to understand customer needs and wants first hand and adapt to market changes faster than competitors. The “build-to-order’ also helps the customer to lower the cost of the product. Second, Dell built computers directly for customers, not for inventory. This meant that the company did not waste resources (Time, Money, Labour) building systems that may need staffs to transport around the world, or spend time tracking and managing inventory, and dismantling systems that become obsolete before purchased.

Original Dell did not target the consumer market, by targeting the consumer market; the cost will be higher and will also reduce the profit margin in selling to indi...

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...heir customers questions on what to kind of functions the consumer wants.
Dell believes in getting feedback from customers and suppliers so as to bring information from the outside world of Dell. By doing this, Dell could stay competitive with other alternative brands. Michael Dell once said he would roam around, outside Dell to observe, analyse and hear how the people in the outside world thinks about their brand as well as the others. He would crash the chatrroms and listen to their conversation about their deliberation on their purchasing behavior. Therefore, he believes by doing this it gives Dell a great opportunity to improve the company.
Dell not only gets feedbacks from the customer but also the supplier. Thus by collating all the feedbacks both from the customers and the suppliers, Dell could improve their company’s efficiency by satisfying both parties.