Dell founder and former CEO Michael Dell founded the company 32 years ago. On his journey to success, he dropped out of college, flirted with PCs, and turned a profitable hobby into a successful business that conquered the computer world.
Dell: One of the top names in the computer revolution. Thirty years ago Michael Dell revolutionized the entire business model behind computers and to this day his company is one of the world's largest computer manufacturers.
In it, we'll see how Michael Dell started a world-changing business from his dorm room, and it made him one of the richest.
As a man who revolutionized the computer business, Michael Dell experimented with childhood in early computers. He will be tinkering with his Apple II, but more importantly, he already has an understanding of the business. As the story progresses, Michael had a summer job at a high school with a Houston Post membership. Instead of making random cold calls, he tracked down newlyweds and families, who simply moved into the neighborhood; People are most likely to look for a newspaper subscription.
He made eighteen thousand dollars that summer, all by directly targeting his buyers.
Now, although his parents wanted him to become a doctor, Michael was not ready to give up his interest in computers. While enrolled in pre-med in 1983, Michael spent his free time repairing and upgrading PCs, which he sold as an informal business from his dorm room. The nineteen year old's hobby quickly proved profitable and Michael dropped out of university to pursue his startup.
In January 1984, Michael registered his company as PC Limited and began selling computers from his condo. A young entrepreneur, Michael was faced with a question: How do I compete with established competitors, who not only have name recognition but also have a network of retailers to pursue products? At that time, customers went to retailers to buy their personal computers. A Best Buy or Radio Shack staff helps shoppers find the right computer - and in exchange for their services, these middlemen raise prices by 10, 20, or 30 percent. So, Michael understood: why not cut out the middlemen altogether and sell them directly to consumers?
Although initially difficult to attract buyers, PCs Limited will be selling at a discount to its established competitors. Michael drove everyone on his approach, known as the "direct model of sales". He advertised directly to knowledgeable consumers in computer magazines. This experienced consumer base may opt for its PC custom assembly, a service that cannot be provided by mass production giants such as IBM. And so, with the use of Chinese component suppliers and assembly plants, Michael Dell's PC Limited began manufacturing and selling personal computers.
In its first year of operation, PCs Limited sold more than $ 6 million worth of computers, proving the potential of their new business model. Michael's company rode the computer boom in the late '80s, with its direct-sales and low prices gaining momentum as word spread.
In 1987, the 22-year-old CEO changed the name of the company from PC Limited to Dell Computer, and a year later, its sales reached $ 160 million. Michael's vision extended beyond just direct consumer sales, of course, and he now finally had the resources to expand his customers. One of the most critical criticisms Michael faced was that his model could not be applied to businesses and large customers, much like the customers of any growing company.
However, Michael was prepared to prove critics wrong: he attracted corporate clients by not only assembling built-to-order PCs but preloading them with all the software they needed.
If you are filling an oil company in a new office location, for example, Dell Computer will not only build your PC with the appropriate hardware for you, but it also uses software to track sales of your gas stations nationwide. Will load the system as well. Dell was ultimately building PCs for everyone, but the advent of the Internet was the beginning of its global ascendancy.
When Dell launched its direct-sale website in July 1996, it gained access to innumerable customers. For the first time, people could buy PCs online, instead of calling the company or sending faxes. Within two months of the launch of its website, Dell had an average of more than $ 2 million in Internet sales a day. By 1998, the figure had grown to $ 5 million and Dell has since remained in the top 3 of computer manufacturers.
Michael Dale is still the CEO, despite the many foundations about taking the company privately and then making it public again, which are honestly complicated.
Be smart
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