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

  • 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 "PCs 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 worlds 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.• Dells headquarters are located in Round Rock, Texas. Employ16,000 people in the facility, which has 2,100,000 square feet of space.
  • Dell TodayDell 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 Cs 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 partnershipsDiversification StrongStrong Brand/PositioningBrand/Positioning Media SavvyMedia Savvy Direct MarketingDirect Marketing ModelModel 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 youComment / Question ??