Research Paper on Michael Dell's Leadership

Essay by franklin atadjaUniversity, Bachelor'sA+, October 2007

download word file, 4 pages 3.0

Michael Dell is the founder, chairman and the chief executive officer of Dell computer Corporation I am going to research on. The company started when Michael Dell was enrolled as a premedical student at the University of Texas in 1983. While at the university, he was only interested in tinkering with computers. During his first semester, he bought remaindered, outmoded IBM personal computers from local retailers, up-graded them and started selling them around campus and in the local businesses. Dell quickly realized that instead of upgrading older machines, he could buy components and assemble the whole personal computers himself more cheaply. He sold the computers he put to together directly to consumers at a 15% discount to what established brands were charging, even though his models had substantially more computing power. Up until that time, virtually all personal computers were sold like other retail products through stores. But, Dell had just proven that, he found a better distribution channel or outlet for his computers.

A couple of years later Dell began selling computers in his brand name. Customers would contract Dell Corporation via internet and explain what they wanted to be installed in their computers. And within 36 hours the customized machine is on its way to the customer. This approach which allows the company to keep costly inventory to a minimum has proved successful where Dell computers are sold directly to the customers, with a better price, level of service and the latest technology. Without the dealers or middlemen, the charges, and the price of Dell computers could be bought at a lower price as compared to other brands.

In addition Dell Corporation spent almost $300 million a year on research and development. Dell employed about 2,000 engineers, and filed several hundred patents a year leading the personal computer...