Dell Case Study – The World's Largest Technological Business Dell Raised $100 million in funding

Dell is a worldwide firm that designs, builds, and manufactures personal computers and computer-related items. It was initially known as "PC's Limited" (1984-1988). The firm is a significant global PC maker. Based on the idea of creating and selling custom-built PCs directly to consumers, the firm began marketing its wares through advertisements and mail-order catalogues. By bypassing the costs involved with traditional retail marketplaces, Dell could provide high-quality PCs at low prices. The company started in a dorm room and has now expanded to employ over 145,000 employees worldwide.

Dell - Key Highlights

• Startup Name - Dell Inc.
• Founder - Michael Dell
• Industries - Computer Hardware, Computer Software
• Headquarters - Round Rock, Texas, U.S.
• Founder - Michael Dell
• Founded - February 1, 1984
• CEO - Michael Dell
• Areas served - Worldwide
• Website - www.dell.com

Dell - US-based Multinational Information Technology Company

Dell is a US-based multinational information technology company that creates, sells, repairs, and supports computers and related goods and services. It is one of the world's foremost computer hardware makers. Dell provides various products, including computers, servers, data storage devices, network switches, software, HDTVs, cameras, printers, and gadgets.

The firm is well-known for its supply chain management and electronic commerce technology, particularly for its direct-sales model and "build-to-order" approach to producing and selling individually built PCs.

Dell - Investors and Funding

On December 28, 2018, their shares went public for the first time for $46.00. Dell had founded a single venture capital fund called Dell Innovators Credit Fund. This fund got announced on June 7, 2012, and $100 million got raised. Dell has thus far made 29 investments.

Dell - Business Model

The company has the most extensive client base with a revenue-generating business strategy because of the beautiful computer services and commodities supplied to the people in the best possible method. The corporate approach is more concerned with satisfying consumer expectations and needs. Therefore, the firm creates a wide range of products based on the demands of its clients.

There are several sections to Dell's business model:

• Enterprise products and services on a large scale.
• Products and services that got intended for the general public.
• The products and services for small and medium-sized businesses.
• Products and Services for Consumers.

Dell - Revenue

Dell Technologies Inc. reported a -2.73% reduction in revenue to $22,733.00 million in the second quarter of 2020. Dell Technologies Inc's sales fell in the second quarter, compared to a 3.61% increase year over year. Three other firms in the Computer Hardware industry saw more robust sales growth in the second quarter. Dell Technologies Inc's sales declined -2.73% in the second quarter, putting it in 1617th overall.

Dell – Growth & Financial Numbers

• Dell grew steadily from 1997 to 2004, gaining market share from competitors even when the industry declined.
• Rival PC vendors such as Compaq, Gateway, IBM, Packard Bell, and AST Research struggled and finally exited the market or got taken out over the same period.
• In 1999, Dell surpassed Compaq as the largest PC maker.
• In 2002, operating expenditures accounted for only 10% of Dell's $35 billion in sales, compared to 21% for HP, 25% for Gateway, and 46% for Cisco.
• In 2002, when Compaq and HP (the fourth-place PC maker) combined, the newly created HP gained the lead, but it failed, and Dell rapidly recaptured it. In the early 2000s, Dell was the firm that grew the most.
• Dell received and maintained the highest ratings in PC dependability and customer service/technical support year after year between the mid-to-late 1990s and 2001, shortly before Windows XP was released.

Dell – Awards and Achievements

Some of the awards won by Dell are as follows:

• Dell has been designated one of the World's Most Ethical Companies for the eighth year in a row by Ethisphere.
• Dell Technologies achieves a perfect score on the Human Rights Campaign Foundation's annual scorecard assessing LGBTQ workplace inclusion.
• Consumer electronics got included in Fast Company's list of the world's most innovative firms in 2019.
• The recipient of the Responsible Business Alliance's Compass Award for Leadership in Accelerating the Circular Economy with Rare-Earth Minerals received the Compass Award for Leadership in Accelerating the Circular Economy with Rare-Earth Minerals.
• After a poll of 50,000 Americans working in companies with more than 1,000 employees, Dell got nominated to Forbes' Best Employers for Diversity 2019 List.
• May 2019, Dell Wins High-Tech Supply Chain innovator 2019 for Creating a Legacy of Good to Address the Circular Economy.

Dell - Competitors

Some of the biggest competitors of Dell are as follows:

• Hewlett-Packard (HP)
• Lenovo
• IBM
• Apple
• Asus
• Acer

Dell – Challenges

Some of the challenges of Dell are as follows:

• Prediction/Forecasting - Supply chain management is incomplete without forecasting. Thanks to accurate estimates, Dell has adequate stock to meet customer demand. This type of forecasting is done in advance to guarantee a seamless transition between supply and demand. Even slight forecasting errors result in revenue loss, excess inventory, and underutilized inventory.
• Desire to Innovate - Dell's most significant hurdle is its desire to innovate. Even though the industry has spent billions of dollars on research and development, developers, not companies, are presently driving the majority of technical advancement.
• Market Dominance - Dell also faces enormous problems in preserving its market dominance. The inevitable expansion of cloud computing, its complicated portfolio of overlapping products, and reduced investment in on-premises infrastructure put pressure on it to preserve market share gains.

Dell - Future Plans

To prosper in the future, the company is moving out of the spotlight or re-imagining a new service-based business. This decision is significant because it demonstrates Dell's ability to understand and embrace changes, such as the dwindling PC market, and find a way to stay competitive. Dell wants to focus his firm on growth areas, such as cloud computing, Big Data, security software, and mobile, rather than chasing a dead dream.