Case History - DELL. This case study has been created by the author, analysing DELL's business model.

Essay by kkaragiannaUniversity, Bachelor'sA+, October 2004

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Case History 2

Introduction 2

Key Marketing Principles 3

Application 4

Justification 6

The Direct Business Model 7

Harnessing the Internet 7

Low-Cost Leader 7

Market Segmentation 8

Business-to-business Market 9

Customer Relationships 9

Sales and Marketing 10

Conclusions 10

Appendix 1 11

Appendix 2 12

Appendix 3 13

Appendix 4 14

Appendix 5 15

Key Events 16

References 18

Case History


Everything was started during his last year at college on 1984 when (student at that time) Michael Dell decided to establish a company with a simple vision and business concept that personal computers could be built-to-order and sold directly to customers through telephone and direct mail before 1994 and almost exclusively through the Internet nowadays (Kraemer et. al, 2001). Since its launch, Dell Computer has experienced an upward path until today that is the leading company in the PCs market worldwide dominating over its main competitors (see Appendix 1).

Dell Computer Corporation operates in both business-to-consumer and business-to-business market concentrating more on the business-to-business market as it can be realised by looking at the company's product portfolio (that is intended more on businesses) in appendix 2 as well as its web site in appendix 3 (it can be observed that Dell's main customers are small, medium, and large organisations as well as public government, education and healthcare institutions). Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets it serves ( In order to achieve this Dell has developed a sophisticated business model concentrating on the low prices, product operations (build-to-order concept), manufacturing and logistics as well as on the effective use of the a direct distribution supply chain bypassing intermediaries, the development of customer relationship and the after sales service support (The Monroe Street...