Dell: Selling Directly, Globally HKU 069
Through the late 1990s, Dell Computer Corporation has had 15 years of remarkable performance. Starting from his dormitory room at the University of Texas at Austin in 1993, Michael Dell built an industry powerhouse that was soon to become the leading PC maker in the US. With over 26,000 employees and a growing worldwide presence, it was the #2 provider of PCs worldwide, with a 9.1% market share, and $21.7 billion in sales.
Much has been said about the source of Dell’s success, in particular it’s business model, in which it sells to customers “direct”. However, the key to Dell’s success may not be as obvious as it first seems. Therefore, we will discuss the Dell case with the intention of determining the source of this remarkable success.
1. What is Dell’s strategy as of 1999?
2. Why has it worked so well?
3. What is the likelihood that Dell’s historical strategy will work in China?
4. How, if at all, will it have to be modified?
