Dell's Foray into Consumer Electronics
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Case Code: BSTR253 Case Length: 21 Pages Period: 2003-2007 Pub Date: 2007 Teaching Note: Not Available |
Price: Rs.400 Organization: Dell Industry: Information Technology and Related Services Countries: US Themes: Business Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Dell Computer Corporation (Dell Corp.) was set up in 1984 by Michael Dell (Michael) with a capital of US$ 1,000. The firm sold computers based on the direct marketing business model, eliminating retailers. It offered customers, mainly large corporations, systems that were built to order, were powerful and richly-configured, and were priced competitively. In 1985, Dell Corp. introduced the Turbo, its first computer system designed in-house. By 1987, Dell Corp. had become the only computer company that offered next-day on-site product service. In this period, the company opened a subsidiary in the UK. In 1988, Dell Corp. went public with an IPO of 3.5 million shares at US$ 8.50 each. In 1990, in order to serve the European, Middle Eastern, and African markets, Dell Corp. opened a manufacturing center at Limerick, Ireland. In 1991, it introduced the Latitude, a notebook computer...
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