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




                             Presented by:
                                  Vijay
                                12mca1072
                          Chandigarh university
Early Life
ā€¢ Born February 23, 1965 in Houston, Texas
ā€¢ Son of an orthodontist and a stockbroker
ā€¢ At age 15 he got an Apple computer just so
  he could take it apart to see how it
  worked
ā€¢ 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




ā€¢ Dell used his savings to build and sell
  computers and upgrade kits from his
  dorm room at the University of Texas.
ā€¢ In 1984, he dropped out of college and
  focused all his efforts on his business.
ā€¢ He registered his company as "PC's
  Limitedā€ and operated it out of his
  condominium.
ā€¢ In his first full year of business, he
  earned $6 million.
ā€¢ In 1985, Dell renamed his company
  "Dell Computer Corporation" and
  relocated it to a business center in
  North Austin.
ā€¢ 1999, Dell overtook Compaq to
   become the largest seller of PCā€™s
   in US.
ā€¢ In 1992 at the age of 27, he became
  the youngest CEO to have his
  company ranked in Fortune
ā€¢ 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.

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

ā€¢ The following year, Dell Computers
   became world's largest PC maker.
 ā€¢ In 2003, changed its named to Dell, Inc.
 ā€¢ In 2004, Michael Dell stepped down as
   CEO and Kevin Rollins was asked to take
   his seat.
Dell Computers
ā€¢ First Dell computer
  was the Turbo PC built
  in 1985. It ran at 8.0
  MHz and sold for $795.
ā€¢ Today, an average
  desktop Dell
  computer costs about
  $550 and has 4GB
  memory that runs at
  1333MHz.
Dell Company Today
ā€¢ listed at number 41 in the Fortune
  500 list.
ā€¢ It is the third largest PC maker in
  the world after HP and Lenovo.
ā€¢ Has more than 103,300 employees
  worldwide.
ā€¢ 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
ā€¢ Michael Dell is the chairman of the
  board of directors and CEO of Dell.
ā€¢ Married to Susan Dell and they have 4
  children.
ā€¢ As of 2011, he has a net worth of $14.6
  billion dollars
Dell Products
ā€¢ Notebook Computers: The Latitude and the
  Inspiron line of notebooks
 - Number one in the U.S. and number two
 worldwide in shipments 2003.
ā€¢ Desktop Computer Systems: The OptiPlex
  and The Dimension desktops
 -Number one in the U.S. and worldwide in
 desktop shipments in 2003
ā€¢ Printing and Imaging Systems: consumer
  inkjets to large workgroup lasers
ā€¢ Software and Peripheral Products
 - Includes memory, digital cameras,
 projectors, scanners LCD televisions, and MP3
 players
ā€¢ Desktop
  Accessories(Keyboar
  d, speakers,headphon
  es, headset, adapters
  e.t.c)
ā€¢ GPS
  (vehicle, phone, outd
  oor)
ā€¢ Handhelds & Phones
ā€¢ Memory(Dell
  memory, memory
  sticks, memory
  upgrades)
ā€¢ Laptop
  accessories(cases, mi
  ce, keyboards, adapt
Business Philosophy
    ā€¢ Company ā€“ Customer directly
         ā€¢ 3 C's of e-commerce
ā€¢ (Content, Commerce, and Community)
       ā€¢ Listening to customers
        ā€¢ Answering customers
        ā€¢ Satisfying customers
 ā€¢ Make you be always relaxative and
               comfortable
Be Direct: DELL
ā€¢   Before Michael Dell, innovation was
    about well-schooled engineers in R&D
    labs inventing high-margin products
    and technologies.
ā€¢   Dell instead trained his eye on finding
    the most efficient way to get tech
    products into the hands of the
    consumers.


ā€¢   Perfected the credoā€” ā€œCut out the
    middleman.ā€
Dell Strategies
ā€¢ 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.ā€


                      Fortune 11/28/2005
Marketing plan
ā€¢ Selling tech products by telephone and
  then the Internetā€¦ Michael broke the
  paradigm about how to run a computer
  business; they havenā€™t been so great at
  finding the next paradigm.ā€
ā€¢ With an unprecedented idea---build
  relationships directly with
  consumers.
ā€¢ Dellā€™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 !!!
ā€¢ DELL did not want the ā€œunsophisticatedā€
  customer.
ā€¢ DELL wants to sell to the ā€œeducatedā€
  customer.
ā€¢ DELL wants the consumer to buy their
  third or fourth system from DELL. Itā€™s
  more profitable and easier.
Dellā€™s Competitors
ā€¢ Main competitors: IBM, HP, and Gateway
SWOT Analysis
      Business to                                    Business to
      Consumer
    Strengths Opportunities                          Business
                                                    Strengths Opportunitie
ļ¬Customization         ļ¬Server Market           ļ¬Customization              ļ¬Server Market
ļ¬Price                 ļ¬Internationalstrategy   ļ¬Price                      ļ¬International strategy
ļ¬Customer Focused      ļ¬Product extensions      ļ¬Customer Focused           ļ¬Additional markets
ļ¬Technical Knowledge                            ļ¬Technical Knowledge        ļ¬Product extensions
ļ¬Market                                         ļ¬Market   Diversification   ļ¬Strategic partnerships
Diversification                                 ļ¬Strong
ļ¬Strong                                         Brand/Positioning
Brand/Positioning                               ļ¬Media Savvy
ļ¬Media Savvy                                    ļ¬Direct Marketing
ļ¬Direct Marketing                               Model
Model                                           ļ¬Non-myopic strategy
ļ¬Non-myopic strategy
                                                ļ¬Technology   Market        ļ¬Competition across
ļ¬Tangibility           ļ¬Competition across
                                                ļ¬Inventory                  markets
ļ¬TechnologyMarket      markets
                                                                            ļ¬Commodity pricing
ļ¬Commoditization       ļ¬Commodity pricing
                                                                            (shrinking margins)
ļ¬Inventory             (shrinking margins)
                                                                            ļ¬Complexity of Mgmt.
                       ļ¬Complexity of Mgmt.
                                                                            ļ¬Growth exceeding
                       ļ¬Growth exceeding
                                                                            productivity
                       productivity
  Weaknesses                      Threats          Weaknesses                    Threats
Wrap Up: Now and Then
ā€¢ Consumers will benefit. Prices will
  drop. Competition is Sony, Samsung and
  Toshiba.
ā€¢ Dell isnā€™t very innovative. Spends only
  1.5% on research, but ā€œWe just do it
  better.ā€
ā€¢ Looking at partnerships with Microsoft,
  Intel. What about new ones with google
  and AMD.
ā€¢ Celebrate for a nanosecond.ā€ Then move
  on.ā€ ā€œFive seconds of celebration and
  five hours of postmortem on what could
  have been done better.ā€
Summary
ā€¢ DELL is to the computer industry
  what Dominos is to the pizza
  business.
                          TIME
   magazine
ā€¢ 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 ā€¢ Born February 23, 1965 in Houston, Texas ā€¢ Son of an orthodontist and a stockbroker ā€¢ At age 15 he got an Apple computer just so he could take it apart to see how it worked ā€¢ 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 ā€¢ Dell used his savings to build and sell computers and upgrade kits from his dorm room at the University of Texas. ā€¢ In 1984, he dropped out of college and focused all his efforts on his business.
  • 4. ā€¢ He registered his company as "PC's Limitedā€ and operated it out of his condominium. ā€¢ In his first full year of business, he earned $6 million. ā€¢ In 1985, Dell renamed his company "Dell Computer Corporation" and relocated it to a business center in North Austin. ā€¢ 1999, Dell overtook Compaq to become the largest seller of PCā€™s in US. ā€¢ In 1992 at the age of 27, he became the youngest CEO to have his company ranked in Fortune
  • 5. ā€¢ 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. ā€¢ By 2000, Dell was a billionaire and his company had offices in 34 countries over 35,000 employees. ā€¢ The following year, Dell Computers became world's largest PC maker. ā€¢ In 2003, changed its named to Dell, Inc. ā€¢ In 2004, Michael Dell stepped down as CEO and Kevin Rollins was asked to take his seat.
  • 6. Dell Computers ā€¢ First Dell computer was the Turbo PC built in 1985. It ran at 8.0 MHz and sold for $795. ā€¢ Today, an average desktop Dell computer costs about $550 and has 4GB memory that runs at 1333MHz.
  • 7. Dell Company Today ā€¢ listed at number 41 in the Fortune 500 list. ā€¢ It is the third largest PC maker in the world after HP and Lenovo. ā€¢ Has more than 103,300 employees worldwide. ā€¢ 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 ā€¢ Michael Dell is the chairman of the board of directors and CEO of Dell. ā€¢ Married to Susan Dell and they have 4 children. ā€¢ As of 2011, he has a net worth of $14.6 billion dollars
  • 10. Dell Products ā€¢ Notebook Computers: The Latitude and the Inspiron line of notebooks - Number one in the U.S. and number two worldwide in shipments 2003. ā€¢ Desktop Computer Systems: The OptiPlex and The Dimension desktops -Number one in the U.S. and worldwide in desktop shipments in 2003 ā€¢ Printing and Imaging Systems: consumer inkjets to large workgroup lasers ā€¢ Software and Peripheral Products - Includes memory, digital cameras, projectors, scanners LCD televisions, and MP3 players
  • 11. ā€¢ Desktop Accessories(Keyboar d, speakers,headphon es, headset, adapters e.t.c) ā€¢ GPS (vehicle, phone, outd oor) ā€¢ Handhelds & Phones ā€¢ Memory(Dell memory, memory sticks, memory upgrades) ā€¢ Laptop accessories(cases, mi ce, keyboards, adapt
  • 12. Business Philosophy ā€¢ Company ā€“ Customer directly ā€¢ 3 C's of e-commerce ā€¢ (Content, Commerce, and Community) ā€¢ Listening to customers ā€¢ Answering customers ā€¢ Satisfying customers ā€¢ Make you be always relaxative and comfortable
  • 13. Be Direct: DELL ā€¢ Before Michael Dell, innovation was about well-schooled engineers in R&D labs inventing high-margin products and technologies. ā€¢ Dell instead trained his eye on finding the most efficient way to get tech products into the hands of the consumers. ā€¢ Perfected the credoā€” ā€œCut out the middleman.ā€
  • 14. Dell Strategies ā€¢ 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.ā€ Fortune 11/28/2005
  • 15. Marketing plan ā€¢ Selling tech products by telephone and then the Internetā€¦ Michael broke the paradigm about how to run a computer business; they havenā€™t been so great at finding the next paradigm.ā€ ā€¢ With an unprecedented idea---build relationships directly with consumers. ā€¢ Dellā€™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 !!! ā€¢ DELL did not want the ā€œunsophisticatedā€ customer. ā€¢ DELL wants to sell to the ā€œeducatedā€ customer. ā€¢ DELL wants the consumer to buy their third or fourth system from DELL. Itā€™s more profitable and easier.
  • 17. Dellā€™s Competitors ā€¢ Main competitors: IBM, HP, and Gateway
  • 18. SWOT Analysis Business to Business to Consumer Strengths Opportunities Business Strengths Opportunitie ļ¬Customization ļ¬Server Market ļ¬Customization ļ¬Server Market ļ¬Price ļ¬Internationalstrategy ļ¬Price ļ¬International strategy ļ¬Customer Focused ļ¬Product extensions ļ¬Customer Focused ļ¬Additional markets ļ¬Technical Knowledge ļ¬Technical Knowledge ļ¬Product extensions ļ¬Market ļ¬Market Diversification ļ¬Strategic partnerships Diversification ļ¬Strong ļ¬Strong Brand/Positioning Brand/Positioning ļ¬Media Savvy ļ¬Media Savvy ļ¬Direct Marketing ļ¬Direct Marketing Model Model ļ¬Non-myopic strategy ļ¬Non-myopic strategy ļ¬Technology Market ļ¬Competition across ļ¬Tangibility ļ¬Competition across ļ¬Inventory markets ļ¬TechnologyMarket markets ļ¬Commodity pricing ļ¬Commoditization ļ¬Commodity pricing (shrinking margins) ļ¬Inventory (shrinking margins) ļ¬Complexity of Mgmt. ļ¬Complexity of Mgmt. ļ¬Growth exceeding ļ¬Growth exceeding productivity productivity Weaknesses Threats Weaknesses Threats
  • 19. Wrap Up: Now and Then ā€¢ Consumers will benefit. Prices will drop. Competition is Sony, Samsung and Toshiba. ā€¢ Dell isnā€™t very innovative. Spends only 1.5% on research, but ā€œWe just do it better.ā€ ā€¢ Looking at partnerships with Microsoft, Intel. What about new ones with google and AMD. ā€¢ Celebrate for a nanosecond.ā€ Then move on.ā€ ā€œFive seconds of celebration and five hours of postmortem on what could have been done better.ā€
  • 20. Summary ā€¢ DELL is to the computer industry what Dominos is to the pizza business. TIME magazine ā€¢ Three Golden Rules of DELL: 1. Disdain inventory 2. Always listen to the customer 3. Never sell indirect
  • 21. Thank you Comment / Question ??
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