Michael Dell - The Man Behind DELL


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Case Details:

Case Code : LDEN004
Case Length : 10 Pages
Period : 1984-2001
Pub Date : 2002
Teaching Note : Available
Organization : Dell Computers
Industry : Computers
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note – Dell Contd...

In late 1993, DELL faced a serious cash crunch and was not able to cope with increased complexity as it expanded its product range and moved into various product areas. In 1993-94, the company recorded a loss of $ 36 million.

DELL's management realized that lack of senior managers was one of the main reasons for the company's poor performance. Soon, the company recruited many senior managers from the industry. It also abandoned its retail business in order to refocus on its mail-order business.

DELL offered Servers, Storage products, Desktops, Switches, Latitude notebooks, Precision workstations, Notebooks and Monitors. 

By 2001, DELL had emerged as one of the top five computer firms worldwide, with revenues of $ 31 billion ($ 25 billion in 2000). Its net income increased to $ 2.3 billion in 2001 from $ 1.8 billion in 2000 (Refer Table II for DELL's financial performance)...

Michael - The Entrepreneur

Michael's entrepreneurial skills were evident very early on. At the age of twelve, he created his own 'auction business'for philatelists.

He got a few people in his neighborhood to give their stamps to him, advertised 'Dell's Stamps,'in a trade journal and earned $ 2,000 from this venture.

According to Michael, it was then that he learnt the importance of eliminating the middleman. This became a guiding principle for all his ventures...

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