Dell, Inc began its cosmic rise in 1984 when Michael Dell used a mere $1000 dollars to found PC’s Limited. Working in a college dorm room at the University of Texas, Michael Dell had a goal to produce IBM compatible computers from stock components to suit individual customer needs. In other words, custom made computers. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. A year after, Michael Dell dropped out of school and requested a family loan for $300,000 dollars and focused on the development of the new company.
Later the same year the company introduced its first company designed computer, the Turbo PC. The computer boasted an Intel 8088 processor that ran at an impressive speed of 8MHz. And it sold in the United States for $795 dollars. The computer systems, which were advertised in computer magazines nationally, were purchased through direct sales. Given a list of options, the customers choose the components they wanted and the computers were built as they were ordered. By ordering the components wholesale, the company was able to provide great pricing, which proved to be much lower than their competitors’. The company’s business formula proved to be a great success and the first year of trading they grossed more than $73 million dollars.
Although the company attempted to market their computers via warehouse club stores and superstores, the public, now used to having the ability to choose and build as they wanted, did not respond as hoped and the company returned to direct sales.
The company its widely known for selling the popular computer systems directly to the customer though Dell’s own website. When the company acquired Compaq in 1999 they became known as the top seller of personal computer systems in the United State
When the global PC industry fell into its worst slump ever during 2000, Dell responded by initiating a price war to which its rivals were slow to respond, providing Dell with a chance to further increase its market share
Dell markets desktop personal computers, notebook computers, network servers, workstations, handheld computers, monitors, printers, high-end storage products, and a variety of computer peripherals and software. The firm also has moved into the consumer electronics arena, offering LCD televisions, projectors, and other products. Dell manufactures most of the products it sells, maintaining six production facilities worldwide.
While true that Dell Inc. has experienced some trouble spots in the past few years, the company continues to be one of the largest computer manufacturers due mainly to the long record of customer satisfaction. While others have adopted the model of direct sales, Dell Inc. continues to be the most successful and the most popular.
http://www.fundinguniverse.com/company-histories/Dell-Inc-Company-History.html


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