Topic > Transforming the Computer Industry: Michael Dell

IntroductionMichael Dell, the founder of Dell Computers, began his project to transform the computer industry in 1980. In that year, Dell purchased its first computer and disassembled to understand how it was designed and built (Dell & Fredman, 1999). In 1981, when IBM introduced the PC, Dell saw this as a possible opportunity. Michael Dell's pastime was taking computers apart, rebuilding them with different parts, and then selling them directly to consumers. “Traditionally, in the computer industry, manufacturing companies built computers, which were distributed to resellers, and resellers who sold them to businesses and individual consumers” (Dell & Fredman, 1999). Dell noticed that IBM was selling its products through distribution method and in 1984 Mr. Dell started business with his own plan under the name “PC's Limited”. The computer company renamed the company to Dell Computer Corporation in 1988. Dell wanted to be like its competitors and attempted to sell its computers through outlets such as warehouses and magazines, but this did not work. Dell decided at this point to change its sales philosophy by adopting a direct-to-consumer method. Once Dell Computers refocused and changed its sales method, it became the largest PC manufacturer in the United States. Dell Computers' vision then was focused on rapid growth, but the concept was changing to “liquidity, profitability and growth,” which prevented failure (Dell & Fredman, 1999). This new vision provided Dell with the opportunity to analyze all business categories and develop profit and loss statements for each section (Dell & Fredman, 1999). Dell Computers ran business like a company that jumped at every new profit opportunity that resulted in growth. However, the company... half way... to the product that could make it more popular. Works CitedDell, Inc. (2007). From the. Retrieved February 16, 2007, from http://www.dell.com.Dell, Michael and Fredman, Catherine. (1999). Directly from Dell: Strategies that revolutionized an industry. New York, NY: HarperCollins. Kharif, Olga. (2005). Dell: Is it time for a new model? Retrieved February 11, 2007, from http://www.businessweek.com.Park, Andrew. (2004). Think outside the box. Retrieved February 13, 2007, from http://businessweek.com.Saunders, Rebecca. (2000). Be direct! Do business the Dell way. Michigan: Capstone Publishing, Inc. Smart Computing. (2007). Michael S. Dell. Retrieved February 28, 2007, from www.smartcomputing.com. Palmer, Ian, Richard Dunford, and Gib Akin. Managing organizational change: a multiple perspectives approach. 2nd ed. Boston: McGraw-Hill Irwin, 2009. Print.