Dell - Jordan Market Analysis for Dell, Inc. Jason Jordan...

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Jordan Market Analysis for Dell, Inc. Jason Jordan Marketing – 3311 04/27/2009 Introduction Dell, Inc. is an international business computer company which has managed to stay at the forefront of computer system sales and technology for over a decade. Its strong and revolutionized strategy of direct selling computers to customers has increased its success in the computer and information systems fields providing it with a competitive advantage. However, over the last few years’ revenue trends show a significant decrease while other competitors’ share of the market have become threatening. This critical analysis details the economic situation Dell, Inc. has faced from the year it was founded according to real financial findings. It will also detail the benefits from its direct-selling strategy as well as possible problems it may face if it continues to follow this approach. The aim of this study is to identify Dell, Inc.’s current situation as well as evaluate any issues that it may face if the current strategy is followed.
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Jordan Possible recommendations are also made in order to speculate and improve the volume of sales and higher customer satisfaction for the company. Company History Dell, Inc. was initially founded in 1984 by its current CEO Michael Dell and was originally named PC’s Limited before changing its name in 1988. Starting with only $1000 in primary capital and the aim of selling IBM PC computer parts, Michael managed to establish Dell as one of the most successful and profitable companies in the market. The first year gross revenues alone for example amounted to nearly $6 million. Moving forward, by 1985 Dell introduced its first in-house designed computer called the Turbo PC which it began to sell later that year. By 1988 the company decided to go public and set its initial public offering at $8.50 a share and was then renamed as Dell Computer Corporation. Eight years later (1996), Dell began selling computers via its newly designed website and also began offering online technical support at the same time. This then moved Dell into the top five largest PC manufactures in the world by 1997. By the end of the millennium (2000), sales via the company’s Internet website had reached nearly $50 million per day which helped Dell to maintain its top position with a 13% market share and gross sales of $31.89 billion. One year later (2001), Dell Computer Corporation became number one in PC manufacturing within its global market share. In 2003 the company was again renamed, this time to Dell, Inc. due to its diverse businesses such as PDA’s, TV’s, and Internet servers. In 2005 Dell, Inc. appeared in the first place slot in the ranking of the "Most Admired Companies" published by Fortune magazine. Then in 2006, Dell, Inc. was declared the 25th largest company in the Fortune 500 companies list because of its international employment of more than 78,700 people. Toward the end of 2007 Dell, Inc. faced a significant
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Jordan decline in PC sales and shipments but managed to stay within 0.1% market share difference with
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This note was uploaded on 11/17/2011 for the course ECONOMICS 103 taught by Professor Tohmass during the Spring '11 term at University of Houston-Victoria.

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Dell - Jordan Market Analysis for Dell, Inc. Jason Jordan...

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