Michael Dell(The Founder and CEO

of Dell, Inc.)

Presented by:Vijay

12mca1072Chandigarh university

Early Life• Born February 23, 1965 in Houston, Texas• Son of an orthodontist and a stockbroker• At age 15 he got an Apple computer just so

he could take it apart to see how it worked• In high school, Michael Dell sold

subscriptions to a newspaper. With his strategy, he earned $18,000 that year, exceeding the annual income of some of his teachers.

Founding Dell Company

• Dell used his savings to build and sell computers and upgrade kits from his dorm room at the University of Texas.

• In 1984, he dropped out of college and focused all his efforts on his business.

• He registered his company as "PC's Limited” and operated it out of his condominium.

• In his first full year of business, he earned $6 million.

• In 1985, Dell renamed his company "Dell Computer Corporation" and relocated it to a business center in North Austin.

• 1999, Dell overtook Compaq to become the largest seller of PC’s in US.

• In 1992 at the age of 27, he became the youngest CEO to have his company ranked in Fortune magazine's list of the top 500 corporations.

• In 1996, Dell started selling computers over the Web, and his company launched its first servers. Dell Inc. They averaged about $1 million in sales per day from dell.com.

• By 2000, Dell was a billionaire and his company had offices in 34 countries over 35,000 employees.

• The following year, Dell Computers became world's largest PC maker.

• In 2003, changed its named to Dell, Inc.• In 2004, Michael Dell stepped down as CEO and

Kevin Rollins was asked to take his seat.

• In 2007, Kevin Rollins resigned. Michael Dell became the CEO once again.

Dell Computers

• First Dell computer was the Turbo PC built in 1985. It ran at 8.0 MHz and sold for $795.

• Today, an average desktop Dell computer costs about $550 and has 4GB memory that runs at 1333MHz.

Dell Company Today

• listed at number 41 in the Fortune 500 list.

• It is the third largest PC maker in the world after HP and Lenovo.

• Has more than 103,300 employees worldwide.

• Dell's headquarters are located in Round Rock, Texas. Employ16,000 people in the facility, which has 2,100,000 square feet of space.

Dell Today

Dell head quarters Round Rock, Texas

Michael Dell Today• Michael Dell is the chairman of the board

of directors and CEO of Dell.• Married to Susan Dell and they have 4

children.• As of 2011, he has a net worth of $14.6

billion dollars

Dell Products• Notebook Computers: The Latitude and

the Inspiron line of notebooks- Number one in the U.S. and number two worldwide in shipments 2003.

• Desktop Computer Systems: The OptiPlex and The Dimension desktops-Number one in the U.S. and worldwide in desktop shipments in 2003

• Printing and Imaging Systems: consumer inkjets to large workgroup lasers

• Software and Peripheral Products- Includes memory, digital cameras, projectors, scanners LCD televisions, and MP3 players

• Desktop Accessories(Keyboard, speakers,headphones, headset, adapters e.t.c)

• GPS (vehicle, phone, outdoor)• Handhelds & Phones• Memory(Dell memory,

memory sticks, memory upgrades)

• Laptop accessories(cases, mice, keyboards, adapters, batteries, etc;)

• Mp3 players• Networking

(adapters,routers,wireless/wifi, etc)

• Company – Customer directly• 3 C's of e-commerce

• (Content, Commerce, and Community) • Listening to customers• Answering customers • Satisfying customers

• Make you be always relaxative and comfortable

Business Philosophy

Be Direct: DELL

• Before Michael Dell, innovation was about well-schooled engineers in R&D labs inventing high-margin products and technologies.

• Dell instead trained his eye on finding the most efficient way to get tech products into the hands of the consumers.

• Perfected the credo— “Cut out the middleman.”

• DELL eliminated the need for inventory or middlemen and gave itself a built-in price advantage, which it in part keeps as profit and in part passes on to customers.”

Fortune 11/28/2005

Dell Strategies

Marketing plan

• Selling tech products by telephone and then the Internet… Michael broke the paradigm about how to run a computer business; they haven’t been so great at finding the next paradigm.”

• With an unprecedented idea---build relationships directly with consumers.

• Dell’s commitment to consumer value, to the team, to being direct, to operating responsibly and, ultimately to winning. Continues to differentiate Dell from other companies

What was Dell thinking !!!

• DELL did not want the “unsophisticated” customer.

• DELL wants to sell to the “educated” customer.

• DELL wants the consumer to buy their third or fourth system from DELL. It’s more profitable and easier.

Dell’s Competitors• Main competitors: IBM, HP, and Gateway

SWOT Analysis

CustomizationPriceCustomer FocusedTechnical KnowledgeMarket DiversificationStrong Brand/PositioningMedia SavvyDirect Marketing ModelNon-myopic strategy

Server MarketInternational strategyProduct extensions

TangibilityTechnology MarketCommoditizationInventory

Competition across marketsCommodity pricing(shrinking margins)Complexity of Mgmt.Growth exceeding productivity

CustomizationPriceCustomer FocusedTechnical KnowledgeMarket DiversificationStrong Brand/PositioningMedia SavvyDirect Marketing ModelNon-myopic strategy

Server MarketInternational strategyAdditional marketsProduct extensionsStrategic partnerships

Technology MarketInventory

Competition across marketsCommodity pricing(shrinking margins)Complexity of Mgmt.Growth exceeding productivity

Business to Consumer

Business to BusinessStrengths Opportunities Strengths

Weaknesses Threats Weaknesses Threats

Opportunities

Wrap Up: Now and Then

• Consumers will benefit. Prices will drop. Competition is Sony, Samsung and Toshiba.

• Dell isn’t very innovative. Spends only 1.5% on research, but “We just do it better.”

• Looking at partnerships with Microsoft, Intel. What about new ones with google and AMD.

• Celebrate for a nanosecond.” Then move on.” “Five seconds of celebration and five hours of postmortem on what could have been done better.”

Summary

• DELL is to the computer industry what Dominos is to the pizza business.

TIME magazine

• Three Golden Rules of DELL:1. Disdain inventory2. Always listen to the customer3. Never sell indirect

Thank you

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