Dell2


The article that I choose was Can Michael Dell Escape The Box? As one of the most brilliant innovator of our time Michael Dell is going through what many people believe is a tough time. But Michael has the absolute opposite thought about his business. The stock has been decline at very high-speeds in the last year. So where does Dell go next? That is the question that everyone in the technology world is wondering these days. “Dell is a continuous growth model. It is like a living organism. It is contestably adoption and changing and finding ways to master its environment, as opposed to just respond to it.” At age 35 Michael Dell is worth about $15 billion. After growing 59% in 1998,48% in 1999 and 39% in the year 2000, Dell told Wall Street to look for 30% in the year 2001. Last quarter the number came in at a disappoint 25%. Dell has decided to go to the next level with selling servers. In sales of Wintel servers, where Dell is No. 2, behind Compaq, it defied skeptics who said it could never sell something so complicated over the telephone or Internet. Now Dell is trying to move even further up to the computing food chains by low cost storage systems and services sell along with its hardware. Although Dell’s revenues are rising smartly its rate of growth has been decline and Wall Street has pounded the stock. The hiring at the Dell Corp. is a very intense process. The hiring is design to weed out anyone who would slow Dell down. People with the big egos who get off on big budgets and big staffs need not to apply at Dell. Newcomers are told they must be comfortable with a “high level of ambiguity.” Even old timers are hard pressed to draw an organization chart. Some people are in charge of segments and some are in charge of products. Dells campus at his corporation is not one that you would look at and be in awe of. Michael Dell has turned the company’s direct, low cost, cut out the bells and whistles. Be the fastest business model into a mission and rallying cry. This year he tells the crowd that Dell’s goal is to be No. 1 in servers and storage, and to be “t he premier Internet partner for customers around the world. Let me tell you why we’re so focused on the Internet infrastructure. Every time someone types www they go to a server.” Sales have up shot along with the rank and market share. Dell is one of the most popular computers out on the market right now. Even though its only way of selling is through direct marketing it is still a hot item. Dell’s revenues doubled over the past two years. And it toppled big competitors like Compaq and IBM to lead the U.S. market in sales of desktops and portables. But those markets are begging to slow, and Dell relies on them for more then 80% of their profits. As from a business perspective we believe that all customers should be treated equal. But with Dell they go with a different approach they believe that all customers at Dell are not created equal. Dell admits that their main focus is the “big time” customers. An example is a large corporation that buys many servers from Dell might get a discount on PCs and portable computers. Nothing last forever. Dell’s biggest challenge will be to have the discipline to know when and how to change the model that has worked so well for it. If Michael Dell does no, it will be just a matter of time before another company does a Dell on Dell.
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