Dell Computer, Inc Case Study

Dell Computer, Inc Case Study

What simple idea do you have to turn
your business into a real gold mine? If a kid building computers in his dorm room can become a Billionaire... what can YOU do?

How do you spell determination?

What would you say if I told you it could be spelled this way: M-i-c-h-a-e-l -D-e-l-l. Let me show you what I mean.

Surely, you have heard of Dell computers, have you not? They are among the most popular and affordable computers on the planet. Do you know how they got started? The story behind the beginnings of the Dell computer is nothing more than a winning display of unyielding determination.

Michael Dell, was a college student at the University of Texas back in 1984, when he had the idea to custom build computers in his dorm room and sell them to other students. It was not an easy sale at the time because we all know how little cash a college student has to spend. Michael determined that he was going to find a way to make a custom computer that the average student could afford. After a little trial and error, he succeeded and once he sold a few, the word spread and he soon had plenty of orders to pay for his whole college tuition. He decided to start an official company right there in the dorm room. He called his new little company, PCs Limited and got started with a measly $1,000 dollars.

Eventually, Michael was doing well enough that he really did not see a need to continue on with paying college tuition in order to get a degree. Why would he need a degree? So he could graduate and get a good job as an employee for the rest of his life? What for? He was making money already. Why not continue on and build his business up even more? So, determined to become even more successful, Michael dropped out of college to run his company full time.

At first, the startup aimed to sell IBM compatible computers built from stock components. Michael started out with the belief that by selling personal computer systems directly to customers, he could better understand their needs and provide the most effective computing solutions to meet those needs. Things were going well enough that his family decided to invest about $300,000 in expansion-capital to keep things going.

In 1985, the company produced the first computer of its own design called the "Turbo PC," which was a rather unique computer and sold for $795. PCs Limited, advertised its systems in national computer magazines for sale directly to consumers and custom assembled each ordered unit according to a selection of options. The company grossed more than $73 million that year! Wow! There is no way you accomplish something like that without determination.

Michael changed his company name to "Dell Computer Corporation" in 1988, and began expanding globally starting with Ireland where his family roots came from. In 1988, Dell's market capitalization expanded to $80 million from its public offering of 3.5 million shares at $8.50 a share. Then in 1992, Fortune magazine included Dell in its list of the world's 500 largest companies, making Michael the youngest CEO of a Fortune 500 company ever. Recently, Dell boasted revenues of $61 Billion with assets topping $27.5 billion, and was at one time the largest seller of personal computers and servers on the planet.

In 2009, Dell acquired Perot systems in a $3.9 billion deal, and today Dell computers is one of the largest technological corporations in the world, employing more than 103,000 people. As of 2010, the company employs about 16,000 people in just their Texas facility alone, which has 2,100,000 square feet of space. Amazingly, almost half of the general fund of the City of Round Rock originates from sales taxes generated from the Dell headquarters.

So tell me again how is it you go from college drop out to youngest CEO in history to mega multi-billionaire in a decade?

Determination my friend. Determination.

Solid Gold Performance...

It requires first and foremost that you, the Player, be absolutely clear on what you want. Then, you must decide what price you will pay to win the prize. Only after you are absolutely clear, and convinced, will you then find the courage to give it all you've got.

How Did Dell Become a Gold Mine? By Superior:

Marketing...     Operations...     Business Cycle Management...

Click on Function... Insert a Do It in your Strategic Plan... then Just DO IT!

Your Thoughts and Observations...

 
 
 
 
 
"The key is to listen to your heart and let it carry you in the direction of your dreams. I've learned that it's possible to set your sights high and achieve your dreams and do it with integrity, character, and love. And each day that you're moving toward your dreams without compromising who you are, you're winning." ~ Michael Dell