Dell Inc. was founded in 1984 by Michael Dell; he believed that by selling personal computer systems directly to their customer’s they can then lower the price for their consumers. The company designs and customizes products and services to the requirements of the organizations or individuals purchasing them, and sells an extensive selection of hardware and computing software. Two-thirds of Dell's sales are to large corporations, government agencies and educational institutions. They also serve as a median to small businesses and to home computer users. Nowadays, Dell is enhancing and increasing the fundamental competitive advantages of the direct model by increasingly applying the efficiencies of the internet to its entire business. Dell's has an award-winning customer service department, is an industry-leader in growth and consistently strong financial performance that distinguishes the company from its competitors. Dell offers its customers powerful, richly configured systems at competitive prices.
Dell’s Strategy for Success
According to Dell Inc. annual 10-K report, published in 2005 Dell was able to succeed in the market place due to a highly efficient manufacturing and supply chain management organization with an emphasis on standards based technologies. Their goal was to provide their customers with superior value; high quality, relevant technology, customized systems, superior service with support and products and services that are easy to buy and use. Dell succeeded because of its operational excellence customer value proposition.
An example of the company’s operational excellence was to create a direct customer relationship with its customers by eliminating wholesale and retail dealers that can add unnecessary costs and diminish the customers understanding on their products. By eliminating these wholesale and retail dealers Dell was able to lower its inventory costs and third person markups and pass the savings onto their...