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Michael Dell
(The Founder and CEO of
       Dell, Inc.)




                             Presented by:
                                  Vijay
                                12mca1072
                          Chandigarh 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
• 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.
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, Tex
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(Keyboar
  d, speakers,headphon
  es, headset, adapters
  e.t.c)
• GPS
  (vehicle, phone, outd
  oor)
• Handhelds & Phones
• Memory(Dell
  memory, memory
  sticks, memory
  upgrades)
• Laptop
  accessories(cases, mi
  ce, keyboards, adapt
Business Philosophy
    • 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
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 Strategies
• 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
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
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
      Business to                                    Business to
      Consumer
    Strengths Opportunities                          Business
                                                    Strengths Opportunitie
Customization         Server Market           Customization              Server Market
Price                 Internationalstrategy   Price                      International strategy
Customer Focused      Product extensions      Customer Focused           Additional markets
Technical Knowledge                            Technical Knowledge        Product extensions
Market                                         Market   Diversification   Strategic partnerships
Diversification                                 Strong
Strong                                         Brand/Positioning
Brand/Positioning                               Media Savvy
Media Savvy                                    Direct Marketing
Direct Marketing                               Model
Model                                           Non-myopic strategy
Non-myopic strategy
                                                Technology   Market        Competition across
Tangibility           Competition across
                                                Inventory                  markets
TechnologyMarket      markets
                                                                            Commodity pricing
Commoditization       Commodity pricing
                                                                            (shrinking margins)
Inventory             (shrinking margins)
                                                                            Complexity of Mgmt.
                       Complexity of Mgmt.
                                                                            Growth exceeding
                       Growth exceeding
                                                                            productivity
                       productivity
  Weaknesses                      Threats          Weaknesses                    Threats
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 inventory
    2. Always listen to the customer
    3. Never sell indirect
Thank you


Comment / Question ??

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Michael dell ,history of michael dell,buisness ideas of michael dell,dell today,dell product

  • 1. Michael Dell (The Founder and CEO of Dell, Inc.) Presented by: Vijay 12mca1072 Chandigarh university
  • 2. 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.
  • 3. 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.
  • 4. • 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
  • 5. • 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.
  • 6. 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.
  • 7. 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.
  • 8. Dell Today Dell head quarters Round Rock, Tex
  • 9. 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
  • 10. 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
  • 11. • Desktop Accessories(Keyboar d, speakers,headphon es, headset, adapters e.t.c) • GPS (vehicle, phone, outd oor) • Handhelds & Phones • Memory(Dell memory, memory sticks, memory upgrades) • Laptop accessories(cases, mi ce, keyboards, adapt
  • 12. Business Philosophy • 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
  • 13. 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.”
  • 14. Dell Strategies • 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
  • 15. 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
  • 16. 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.
  • 17. Dell’s Competitors • Main competitors: IBM, HP, and Gateway
  • 18. SWOT Analysis Business to Business to Consumer Strengths Opportunities Business Strengths Opportunitie Customization Server Market Customization Server Market Price Internationalstrategy Price International strategy Customer Focused Product extensions Customer Focused Additional markets Technical Knowledge Technical Knowledge Product extensions Market Market Diversification Strategic partnerships Diversification Strong Strong Brand/Positioning Brand/Positioning Media Savvy Media Savvy Direct Marketing Direct Marketing Model Model Non-myopic strategy Non-myopic strategy Technology Market Competition across Tangibility Competition across Inventory markets TechnologyMarket markets Commodity pricing Commoditization Commodity pricing (shrinking margins) Inventory (shrinking margins) Complexity of Mgmt. Complexity of Mgmt. Growth exceeding Growth exceeding productivity productivity Weaknesses Threats Weaknesses Threats
  • 19. 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.”
  • 20. Summary • DELL is to the computer industry what Dominos is to the pizza business. TIME magazine • Three Golden Rules of DELL: 1. Disdain inventory 2. Always listen to the customer 3. Never sell indirect
  • 21. Thank you Comment / Question ??