Dell Computers Transformation To The E-business Environment
American Public University
John Karonika Ph.D.
DELL COMPUTERS 2
Dell Computer Corporation was founded by Michael Dell in 1984 at the young age of nineteen and was based in the Integrated Technology Industry (IT). The Company was originally named PC's Unlimited until 1988 when it publicly and officially changed its name to Dell Computer Corporation. The company released it first laptop in 1989 and in 1992 Michael Dell wan featured in Fortune 500 and was the youngest CEO to receive this honor.(Dell,2012) In 1995, Dell expanded worldwide and in 1996 took its sales online setting the bar for e-commerce worldwide. Dell also took its technical support online with E-Support, which delivers technical support online via the internet.(Dell,2012) In 2000, their online sales had climbed to over forty million dollars a day making Dell one of the highest volume e-commerce sites in the world. Dell is now named the number one computer systems manufacturer in the world, which is a huge accomplishment considering the humble beginnings of the company and it being founded by a nineteen year old with only a thousand dollars capital.
Dell was founded and established to advance computer technology and products and transformed its original business model to offer its products and services online. This company fits the virtual face online business model because they took their non-virtual business and put it online.(Burn,2001) They offer the same products and services online that they offer in store. Some products can even be customized online. This definitely sets Dell apart from the competition because most consumers do not want cookie-cutter products. Consumers like the idea of being able to personalize their products before purchase. Customers can even build their own laptop/desktop computer with only the components that they want or need without all the ones that they do not. They can also customize the appearance of their items. This is just one of
DELL COMPUTERS 3
the ways that Dell is showing its customers its dedication to evolving and adapting to the industry and consumer needs.
According to Dell, it uses a virtual integration and direct business model.(Dell,2012) The key to the company's success rests with its strategy of virtual integration which uses technology to share information freely and in real time with all internal departments. It also shares information with venders, customer and field service providers. This collaboration leads to increased efficiency and productivity in the areas of customer service, supplier partnerships and manufacturing.(Fisher,2004) This real-time, rapid information exchanging increases the company's knowledge about new technologies. These technologies help speed up manufacturing and the production of products which helps Dell met the demands of its customers. In the Integrated Technology Industry, the success of the company is based on how quickly and efficiently it can develop and product new technology and products. This is also cost efficient because the more the company invest in technology and the quicker it releases it to the customer base, then the more money they will make because they got to that customer base first. Dell is committed to constantly growing and evolving within the industry to met the needs and demands of the consumers.
Dell's dedication is not only directed at it consumers but also to it employees. Below is part of the culture and missions of the company.