Michael Saul Dell, Superior Business Model
Within 22 years, computer manufacturer Dell has grown and flourished under his cold hand touch its founder, Michael Dell. What is the secret of success? There was no denying that the brain behind the success of Dell Computer, the world’s largest computer company from the United States, is chairman and founder of this company, Michael Saul Dell. Though no longer serving as CEO, he still continues to contribute thoughts that produce many innovations.
Michael Dell is the son of a orthodentist. He first started his computer project at the age of 15 years. At that time, out of curiosity he had to disassemble the new Apple II computer to see the components and try to reassemble. Dell started his computer business from dorm Dobie Center since he was a student at the University of Texas in 1984. Having founded the company PC’s Limited, Dell decided to get out of college at the age of 19 years to run the business full-time. In 1987, Dell changed the company name from PC’s Limited became Dell Computer Corporation. Over time though has gone through many difficulties and ups and downs of business world, Dell managed to achieve success. Dell’s annual revenue grew from six million dollars to more than 40 billion dollars in just over 16 years and employs more than 40,000 people in more than 170 countries.
Dell products also has diversified from its core business. Today, he not only sells personal computers (PCs), portable computer (laptop) or server computer, but also the storage media (storage), printers, handheld computers aka PDA, MP3 music player, TV plus a variety of computer services. Dell said, “We founded this business in student dormitories, my capital is only 1000 U.S. dollars. Now Dell has become the biggest online computer retailer in the world. Dell’s online sales via the Internet at an average of 30 million dollars per day. ”
The main key to Dell’s success is a unique innovation of the founder. He made the breakthrough that much different from what the computer companies at that time. Prospective buyers can order a Dell computer as you wish them directly via phone or internet. They could put the computer specs are willing to buy online. As a result, Dell does not need to store inventory or make investments that are too big. Actually by making those sales strategy, Dell has transformed his weakness into strength. Because of limited capital, he could not have their own office and can not have a lot of stock. So he was doing business from his dorm. He does not expect customers to come and see “the office” it. He asks prospective customers to order over the phone or Internet as they wish, without needing to bother to come. Apparently the strategy worked.




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