Dell company

“ Dell Technologies Company “

Founded by Michael Dell in 1984

Michael Dell, (born February 23, 1965, Houston, Texas, U.S.), American entrepreneur,
businessman, and author, known as the founder and CEO of Dell Inc., one of the world’s
leading sellers of personal computers (PCs). In 2016 he became CEO of the newly formed
parent company, Dell Technologies
Dell Technologies is one of the largest tech companies in the world, with over 165,000
employees across the globe. Founded by Michael Dell in 1984, the company focuses today
on sales of personal computers, network servers, data storage solutions, and software.
Dell Technologies Inc (Dell) is a provider of desktop personal computers, software, and
peripherals. The company designs, develops, manufactures, markets, sells, and supports
information technology infrastructure such as laptops, desktops, mobiles, workstations,
storage devices, software, cloud solutions and notebooks.
Dell technologies lost 67 billion U.S. dollars, Dell Technologies went public again. At the end
of 2022, Dell had debt worth 26.95 billion U.S. dollars.
Dell Technologies net income/loss worldwide from 1996 to 2022 (in million U.S. dollars)
Dell has been adored because it is the very model of a flat-earth, New Economy business. It
takes orders directly from customers over the phone and the Internet, sources components
around the world, and assembles and delivers them with a hyper-efficient supply chain. But
all of a sudden, Dell is getting walloped. There has been a disappointing earnings report,
complaints about customer service, unflattering stock charts, and a rash of articles
questioning Dell’s future—Business Week had two negative Dell articles in its current issue,
and the Financial Times had a critical takeout.
Dell has no style. IN some ways, being boring has been an advantage: business customers
love dull. But consumer PCs and consumer electronics have become a larger part of the
business in recent years. Dell has come out with TVs, but the market share is low. Overall,
consumer is still only 15 percent of the company’s revenue.

Price. Everyone thinks that Dell has been the low-cost leader among major PC makers. In
reality, Dell’s average selling price has been higher than the industry average and higher
than that of rival HP for years.
This is why Dell’s struggling so badly it just took a $2b loan from Microsoft and bought itself
back from shareholders to become a private company: after more than a decade of effort,
the company never figured out what consumers actually want beyond low prices, or why
they might want it.
Dell lost much of its product momentum and market share in the laptop, desktop and server
segments to HP. In 2007 and 2008 Dell was listed in a Scoreboard: WSJ Worst Three Year
Performance with a -9.6% three year return. Because of its size and an absence of an
innovative product like the iPhone, it is a challenge for Dell to drive revenue growth in a
meaningful way. In order to be able to return its market share and high rates of growth Dell
has to reshape its strategy and reevaluate its goals according to the new trends in IT market.
Dell has encountered delays in laptop shipments because of paint problems, causing some
back-to-school customers to cancel orders and head to their local electronics chains for
immediate replacements. Dust contamination apparently caused Dell headaches when it
went to volume on these flashy colored laptops. Indeed, Dell has stopped offering its pearl
white model because of the dust situation.
In addition, Dell is blaming a shortage of LED back-lit liquid-crystal displays in the electronics
supply chain for passed due shipments to customers. This is particularly comical because
Michael Dell’s Direct Model concept is based in large part on a flowing supply chain.
One such strategic decision that the management made was to shift from its existing “Direct
Made to Order” business model to a more hybrid model that combined it with a retail
presence. Yet, by 1994 Dell realized that it wouldn’t be able to sustain itself and withdrew
from the retail distribution channel.
SWOT
How does Dell distribute its products?
Strengths
Dell has used many different channels to sell
1. Brand name valued at $7.5 billion
their PC’s over time such as computer stores,
2. Product customization department stores, over the phone, Ebay and
of course their website. A computer is
3. Environmental record relatively easy to transport and can be easily
distributed from the manufacturer to the
4. Competency in mergers and acquisitions
consumer.
5. Direct selling business model
Weaknesses
1. Commodity (computer hardware) products Why did Dell fail in the retail segment?
2. Poor customer services One such strategic decision that the
management made was to shift from its
3. Low investments in R&D
existing “Direct – Made to Order” business
4. Weak patents portfolio model to a more hybrid model that combined
it with a retail presence. Yet, by 1994 Dell
5. Too few retail locations realized that it wouldn’t be able to sustain
itself and withdrew from the retail distribution
channel.