Dell's Company Profile (DELL)

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Company profile (DELL)

Dell was founded by Michael Dell in 1984, while he was still a student at the University of Texas in Austin. At the time, the PC industry was dominated by such large corporations as IBM, while smaller, lesser known mail order entrepreneurships sold IBM computer clones cheaply. Dell used low-cost direct marketing to undersell PC, that he bought dirt cheap (outmoded) from other retailers and modified, therefore drastically increasing performance. Dell placed ads in computer magazines, overclocking his merchandise to buyers who were perceptive enough to recognize high quality merchandise at low prices. Customers placed orders to Dell by dialing a toll-free number. As a result of these methods, Dell’s computers became the
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It becomes a big company of more than 35.000 employees and over 25.000 million dollars’ sales in 2000, competing with industrial beasts such as IBM and HP. It`s not a surprise that Dell was the most trendy company of US and third most admired company worldwide in 2005.6
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1. History of the Dell company http://www.fundinguniverse.com/company-histories/dell-inc-history/
2. Nancy F.Koehn Michael Dell: Winning on the Demand Side of the Information Revolution http://economicstrategy.org/wp-content/uploads/2014/01/9-801-363.pdf 3. Interviwie with M. Dell «Taking The Direct Approach» https://www.entrepreneur.com/article/197566
4. Andrey Nesterov «Маркетинг как стратегия. Роль генерального директора в интенсивном развитии компании и внедрении инноваций»
5. http://www.encyclopedia.com/topic/Dell_Computer_Corp.aspx
6. Areti Manataki A Knowledge-Based Analysis and Modelling of Dell’s Supply Chain
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Such opportunity was provided by cost-savings associated with banishing the retail middleman. This floated away from the traditional distribution model for PC sales played a large role in Dell’s formidable early growth. Additionally, an important side-benefit of the Internet-based direct sales model was formation of a rich massive of market data, that the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer

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