Michael Dell founded Dell Inc. in 1984 out of his dorm room at the University of Texas, selling computers out of his dorm room. He grew the company significantly, becoming the youngest CEO of a Fortune 500 company at age 27. Dell pioneered a direct-to-customer sales model that eliminated retailers, cutting costs and allowing lower prices than competitors. Today, Dell Inc. employs over 103,000 people worldwide and is one of the largest technology companies, focusing on PCs, servers, and other technology products and services. Michael Dell remains actively involved as CEO, focusing on customer satisfaction and an efficient business model.

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 ??