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Computing Success: How Dell Came Out On Top

Article Overview: To become a success, Dell says, “You just need a framework and a dream.”

Computing Success: How Dell Came Out On Top

To become a success, Dell says, “You just need a framework and a dream.”

Dell transformed a dorm room venture into one of the world’s largest billion dollar corporations. He became the youngest CEO in history to ever head a Fortune 500 company and he created a revolutionary new model for doing business in the information age. How did he do it?

He Had Focus: Dell isn’t the computer industry’s biggest innovator, but nor does it try to be. Dell knows what it is good at and what made it a success, and it has stuck to that formula. By cutting operating costs, eliminating the middleman, scrapping inventory and spending a minimal amount on research and development, Dell is the first to admit that it’s sole goal is to offer computers at the lowest possible price and leave the cost and risks of innovating to others.

He Prioritized the Customer: With little innovation of its own, Dell is often accused of being a one-trick pony. “No,” he replies. “We’re a two-trick pony. We satisfy customers and we make a profit.” From day one, Dell has made a point of studying his customers as opposed to his competitors, believing this would give him a greater competitive advantage. By focusing on product customization, customer needs and customer service, Dell has established his company as one of the most customer-centric in operation today.

He Delegated Authority: Dell might have started off on his own at 19 years old, but as the company grew, he knew his success would depend on the people he surrounded himself with. “There’s no such thing as a self-made success,” he says. “We are all gifts to each other, and my own growth as a leader has shown me again and again that the most rewarding experiences come from my relationships.” By giving his staff a high degree of responsibility and authority, Dell was ensuring his team had an equal amount of interest in seeing his company succeeded as he did.

He Was Flexible: “Swing for hits, not home runs,” says Dell. “Business is like baseball. If your competitor is batting 300 you want to bat 350 or 400. No-one’s batting 1000. So you can’t worry about it.” Dell wasn’t aiming to be perfect. But, he did want to stay on top of his competitors. By being aware of changing trends and being flexible enough to adapt to them, Dell was able to use those very changes to his advantage.

He Was Independent: Dell had everyone from his parents to industry experts telling him to ignore his dream and go back to school. There was no way a 19 year old with no innovative product of his own could break into the game, they said. But, Dell believed in what he was doing. He knew there was a demand that he could meet and he refused to listen to his critics until they were singing his praises.

You only need look at the name on the computer in front of you and chances are Dell’s success will quickly become apparent. Today, Dell Inc. revenue continues to grow at nearly 15% per year. Dell has not only set the bar for customized, low-cost computers, but by making his success seem so simple and straightforward, Dell has become one of the most fascinating and copied entrepreneurs in history.

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Article Tags: 19 years, ceo, competitive advantage, customer needs, dell, doing business, dollar corporations, dorm room, fortune 500 company, home runs, information age, innovator, lowest possible price, middleman, new model, relationships, research and development, rewarding experiences, sole goal, trick pony



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Re: How many computers do you have? - [quote="OmnivoreInk":1dnp9mfb]Here's a question... I'm just curious... how many computers do each of us have? I've got a desktop computer - a Dell... about 4 years old now, I think, and a laptop, a Sony Vaio...which I bought when I hoped to be doing a lot of travelling around the country...that never came to pass (and looks even less likely now with gas prices!) but it's still fun to be able to carry from room to room of my house... I don't own any fancy palm pilots...not even an Ipod...[/quote:1dnp9mfb] Hi Barbara, I only have one 4 year old Dell Inspiron 8600 (15.4" monitor). On the other hand, my father has a very old desktop, but a new 20" monitor... while my brother also owns a Dell notebook, but it's a Vostro and is much better value than an Inspiron or Studio model. The only drawback of the Dell Vostro is that it's really ugly looking.
Re: Bye Bye Vista - I was hesitant to replace the Vista OS with XP because Dell claims to void any service support if I made changes to the OS. I was held hostage until I finally made the decision to drop the Dell support (if I have too), hopefully I can persuade them to assist me if I have troubles that I can't troubleshoot.
Re: How do you back up your computer? - After deciding not to go with BackBlaze because they couldn't back up all of my files within the trial period (what's the point of a trial period of you can't actually try it out??) I have now given Dell a chance. I bought my new Dell laptop about 6 months ago and never initialized the Dell DataSafe Online application - until yesterday afternoon. My favorite thing about it so far is that before you back up it shows you how many files you have in different categories - ie documents, financial information, email files, videos, music, and photos. From there you can set your preferences as to what you want to back up. For me I have a large number of videos, photos, and music on my computer but I deselected them for the backup - To make the backups go more quickly I only chose the documents, financial information, and email files. This might be why my BackBlaze trial backup never completed. It works on the same premise that if you change a file it will recognize the change and only backup those changes. I have a free one year account that came with my Dell and so far I'm happy with it. You may want to consider looking into the program if you haven't found a suitable backup system yet!
Dell service contract - Hi Kevin, I've been with Dell for years and have also always purchased the 3 year plan with laptops. Desktops are easier to fix if something goes wrong but laptops are more complicated. In 10 years I've had to take my laptop in once (it was over a year after I purchased it) - so I was happy to have purchased the extended service. My wife is now looking at a Dell as she has a 20% off coupon and they are offering a free Flip video camera with some of their new laptops so we might have a new addition to the computer family tonight!
Re: How many computers do you have? - [quote="OmnivoreInk":3jpwh47m]Here's a question... I'm just curious... how many computers do each of us have? I've got a desktop computer - a Dell... about 4 years old now, I think, and a laptop, a Sony Vaio...which I bought when I hoped to be doing a lot of travelling around the country...that never came to pass (and looks even less likely now with gas prices!) but it's still fun to be able to carry from room to room of my house... I don't own any fancy palm pilots...not even an Ipod...[/quote:3jpwh47m] I had 2 HP desktops - at different times, but then I got my Dell laptop - its about 4 1/2 years old at this time. I eventually upgraded my desktop and got another Dell which is about 3 1/2 year old. My brother and father both got new desktops with a nice flat screen monitor and all the usually accessories for right about $600. The computer even had 160 GB of storage space and a 3 year in office repair warranty. I bought the service agreement on both computers, but wouldn't get it on the desktop again. When my original warranty expired on the laptop, I extended it another 2 years. In addition, I bought a new larger hard drive on Ebay and have basically a new laptop under warranty for just over $300. I have definitely used the warranty on the laptop and have gotten many times my investment out of it. I would not finance with Dell again - I'd be way ahead by using a low interest credit card. I did finance the laptop and paid about $250 for financing on a $1100 computer over 3 years. Shri


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