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  • Essay / Transforming the Computer Industry: Michael Dell

    IntroductionMichael Dell, the founder of Dell Computers, began his project to transform the computer industry in 1980. That year, Dell purchased its first computer and took it apart to understand how it worked. designed and manufactured (Dell and Fredman, 1999). In 1981, when IBM introduced the PC, Dell saw a possible opportunity. Michael Dell's hobby was taking computers apart, rebuilding them with different parts, and then selling them directly to consumers. “Traditionally in the computer industry, manufacturing companies manufactured computers, which were distributed to dealers and resellers who sold them to businesses and individual consumers” (Dell and Fredman, 1999). Dell noticed that IBM was selling its products through the distribution method, and in 1984, Mr. Dell went into business with his own plan under the name "PC's Limited". The computer company renamed the company Dell Computer Corporation in 1988. Dell wanted to be like its competitors and tried to sell its computers through outlets such as warehouse clubs and magazines, but this did not work. Dell then decided to change its sales philosophy in favor of a direct-to-consumer sales method. Once Dell Computers refocused and changed its sales method, it became the largest PC manufacturer in the United States. Dell Computers' vision was then focused on rapid growth, but the concept evolved towards "liquidity, profitability and growth", which avoided failure (Dell and Fredman, 1999). This new vision gave Dell the opportunity to analyze all business categories and develop profit and loss statements for each section (Dell and Fredman, 1999). Dell Computers ran its business like a company that seized every new profit opportunity, which resulted in growth. However, the company...... middle of paper...... to the product that could make it more popular. Works Cited Dell, Inc. (2007). Dellä. Retrieved February 16, 2007 from http://www.dell.com. Dell, Michael and Fredman, Catherine. (1999). Straight from Dell: Strategies that revolutionized an industry. New York, NY: HarperCollins. Kharif, Olga. (2005). Dell: is it time for a new model? Retrieved February 11, 2007 from http://www.businessweek.com.Park, Andrew. (2004). Think outside the box. Retrieved February 13, 2007 from http://businessweek.com.Saunders, Rebecca. (2000). Be direct! Do business the Dell way. Michigan: Capstone Publishing, Inc. Smart Computing. (2007). Michael S. Dell. Accessed February 28, 2007 from www.smartcomputing.com. Palmer, Ian, Richard Dunford and Gib Akin. Managing organizational change: a multiple perspectives approach. 2nd ed. Boston: McGraw-Hill Irwin, 2009. Print.