Dell started in 1983 when Michael Dell began upgrading and selling IBM compatible computers from his dorm room. Dell pioneered a direct sales model where they assemble computers from supplier components according to customer specifications. This allows Dell to eliminate costs from intermediaries and warehouses. Dell's USPs include lower prices from direct sales, total customization, and 24/7 customer support. Dell became a global leader in PC sales and by 2010 was the second largest PC company worldwide.

1. Dept., RVCE
IT
BY,
SIDDHARTH DC
(1RV09IT043)

2. OUTLINE
 Brief history
 Business Model
 USP
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 Dell as Brand
 Conclusion
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3. History
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 In 1983 Michael Dell a freshman at the
University of Texas, Austin started upgrading
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IBM compatible personal computers door to
door for local business
 Started with the idea to sell directly to
consumers…..

4. ……
 1985
◦ Released the “Turbo”, Dell’s first computer.
 1989
◦ Dell released its first notebook computer.
 1993
◦ Dell shifts business over seas to try to gain
market share
◦ Europe
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◦ Middle-east
◦ Japan
◦ Australia
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 1996
◦ Started selling products on its website.

5. Business Model
 Direct to customer business model.
 Dell is not a manufacturer. Components are
made
by supplier and Dell assembles the computer
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using cheap labor
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 Markets its direct sales model.
 No intermediaries
 No warehousing
 No physical store presence……

6. ………..
 Dell maintained a month’s worth of
component
inventory but it suppliers generally carried
supplemental buffer stock that could be
immediately shipped
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 Tailoring their computers to their customers
specification and selling the item directly to
their customers is what makes Dell’s
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business
model superior

7. USP’s
 Dell eliminated the need for central
warehousing as well as the need for a
physical store presence. Instead Dell attracts
customers to its site and then builds bonds
with them there rather than investing in a
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physical relationship.
 Reduced price
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◦ The money saved from selling products
directly to the customers is then passed on to
them.
◦ By selling directly to the customer Dell
removes all the cost that they would have

8. ….
 Total customization of their personal computers.
◦ Dell offers a totally hands on experience when
its comes to purchasing your next computer
 Higher level of communication between
customer
and company.
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◦ Dell is free to collect customer information
directly from there customers rather than an
having intermediary try to do this.
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 This allows Dell to not only track its customers
but also helps to retain them.

9. …
 A 24-hour telephone support system
comprising
well-trained technical representative
provided
the first post-shipment level of support.
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 Dell serviced its customers with combination
of
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home based telephone representative and
field
based representative.

10. Dell as Brand
 1997
◦ Recorded 1 million in sales generated from
the internet.
 2000
◦ Dell was ranked 1 world wide in shipment of
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Workstations
 2003
◦ Dell is made the official name of the
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company
◦ Continually expanding overseas….

11. ….
.
 Dell is the industry leader in direct sale of
personal computers to consumers
Global PC Market Share by Units, Percent
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RANK 2008 2009 2010
01 HP-18.4 HP-19.3 HP-17.9
02 DELL-14.3 ACER-13 DELL-12.9
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03 ACER- DELL-12.2 ACER-
11.1 11.3

12. Conclusion
There's always an opportunity to make a
difference..
Michael Dell
Dept., RVCE
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13. IT Dept., RVCE