DELL Overview

Doing business as a multinational technology corporation that focuses on the development, manufacturing, selling, and support of personal computers and other computer-related products worldwide, Dell Inc. (DELL) was once the largest retailer of PCs and servers throughout the 1990s. Today, Dell currently sits in the number two position, behind Hewlett-Packard, in overall computer sales.

Starting back in 1984, Dell Inc, then known as PC’s Limited, began as the brainchild of University of Texas student Michael Dell. Not known for his academic achievements, Dell did however possess a perceptive business sense. In his off-campus housing, Dell began PC’s Limited as a startup company aimed at selling IBM PC-compatible computers comprising of stock components.

From the get-go, Dell preferred to sell his computers directly to customers in order to understand a users’ needs more effectively. It was through this process that Dell could provide operating systems and higher quality computing solutions to his customer base at a lower cost. Once the business began to show potential, Dell would then drop out of school in order to fulfill his passion for computer technology, with the help of his family.

By 1985, Michael Dell and PC’s Limited had produced their first original computer design, the “Turbo PC,” which contained an Intel processor and retailed for just under $800. With extensive advertising directed to the personal computer user, PC’s Limited offered lower prices than most retailers, while assembling each ordered unit individually to meet the customers’ needs. By the end of 1985, Dell and PC’s Limited had grossed more than $73 million in overall sales.

Three yeas later, the company changed its name to Dell Computers Corporation and a year after that, the company began to establish their first on-site computer service business. These were formed largely to the lack of cooperation from local retailers that were not interested in setting up their own computer service centers.

In June 1988, the company’s success was multiplied when Michael Dell took the company public. In an initial offering of 3.5 million shares at $8.50 per share, the company’s market cap surged from $50 million to more than $80 million.

Throughout the 1990s, Dell Computers went through many changes. These would include selling computers via their Internet site, overtaking then computer retail giant Compaq, now owned by Hewlett-Packard, and changing their corporate logo to what is now their current version.

Within the company’s current business practices, Dell provides a wide range of products and services to their worldwide consumer base. Dell’s customers are comprised of individual users as well as large corporations, government facilities, healthcare industry, and educational institutions, as well as the small and medium business owners.

Dell supplies their patrons with desktop PCs and workstations as well as notebook computers, servers and networking products. Dell also presents other items such as storage solutions, which include direct-attached storage, storage area networks, disk and tape backup systems, network-attached storage and removable disk backup.

Also included in their product offerings are their third party software products, which include operating systems, business and office applications, anti-virus software and related security software.

The company has also delved into entertainment software and peripheral products that are comprised of software titles, printers, scanners, networking and wireless products, power adapters, notebook accessories, digital cameras, televisions and flat panel monitors and projectors.

In addition to the aforementioned services and products provided by Dell, the company also grants asset recovery and recycling services, infrastructure consulting services, support services, training services and deployment services.

Furthermore, Dell offers a select range of financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products. Through the company’s subsidiary, Dell Financial Services LLC, the firm offers financing alternatives such as asset management services. Dell also offers other customer financial services through their private label credit financing programs in partnership with CIT Bank to qualified consumers and small business owners.

In today’s technology sector, and more specifically the personal computer industry, Dell has some stiff competition. These ultra-players include U.S. traded Apple Inc. (AAPL), Hewlett-Packard Co. (HPQ), Sun Microsystems Inc. (JAVA) and Sony Corp. (SNE), as well as foreign traded Gateway Inc., Lenovo Group Limited, Acer Inc., ASUSTeK Computer Inc. (ASUS) and Toshiba Corp.

By BetterTrades