This website uses cookies to ensure you have the best experience. Learn more

Transforming The Computer Industry: Michael Dell

1488 words - 6 pages

Michael Dell, the founder of Dell Computers, started his scheme towards transforming the computer industry in 1980. In that year, Dell bought his first computer and took it apart to understand how it was designed and made (Dell & Fredman, 1999). In 1981, when IBM introduced the PC, Dell saw this as a possible opportunity. Michael Dell’s pastime was to take computers apart, rebuild them with different parts, and then sell them directly to consumers. “Traditionally, in the computer industry, manufacturing companies built computers, which were distributed to resellers and dealers who sold them to businesses and individual consumers” (Dell & Fredman, 1999). Dell noticed that IBM ...view middle of the document...

Dell stated the change to the company was a huge alteration; however, the change improved the products previously created and helped them reach their full potential instead with what they already had going for them (Dell & Fredman, 1999).
After these changes in 1993, Michael Dell was crowned “Turnaround CEO of the Year” in 1993 by Upside magazine (Saunders, 2000). Michael Dell stated “the real key to success comes from within; knowing their strengths and being open to experimentation” (Dell & Fredman, 1999, p. 227). Investigation comes through the constantly changing industry in which Dell Computers’ people, customers and suppliers are willing to embrace such changes.
The image of the type of change held by the change agent
The image of the type of change held by Michael Dell was to move from sales through
warehouse clubs and magazines to directly selling to consumers. Dell grew and changed through its systematic ability to develop and stick with its ideas.

The “culture” of the setting that is changing and the role culture played in the change
The culture of the setting that was changing was the way that Dell sold its products. Like most computer companies, the products were manufacturers then distributed to customers via retailers who specialized in computer sales. Michael Dell decided that it would be beneficial to them to sell directly to the consumers, therefore eliminating the middle man. This made computers more available to consumers and thus increased profits substantially.

The extent to which the (envisioned and actual) change was first or second order vs. adaptive or transformational
The types of changes in this example are first order or adaptive change. First order change is defined in the text as incremental change, or change that may involve adjustments in systems, processes, or structures but that does not involve fundamental change in strategy, core values or identity. Dell didn’t fundamentally change any of these. It was still a company that manufactured and sold quality computing products. It simply changed the way that product was marketed and sold to its customers. Instead of selling to wholesalers or warehouse clubs it chose to directly sell to customers.
The method(s) for implementing change
Dell decided to adopt a more customer-driven strategy to invention instead of a standard distribution approach. Dell acknowledges that the problem with a traditional method to improvement is that it usually produces proprietary technologies and that, that particular approach produces products that are hard migrate from as a customer (Dell, 2007.) Information needed for product innovation, such as what products consumers want, need and why; the prices customers are willing to pay; and, what new product should be developed, are all taken from customer reviews. Throughout several different programs, Dell decided to adapt to a customer-driven way of doing business. Dell continues to collect suggestions directly...

Other Essays Like Transforming The Computer Industry: Michael Dell

What the Best Ceos Know Essay

1155 words - 5 pages Compare Chapters 2 and 5 What the Best CEOs Know Written by Jeffery A. Krames The purpose of this paper is to compare and contrast two very successful corporate leaders within the IT industry based on the book What the Best CEOs Know (Krames, 2003). Chapters two and five cover Michael Dell from Dell Computer Corp and Andy Grove from Intel Corp, respectively. We will look at five topics including their main contributions, resistance

Michael Dell and Andy Grove Essay

866 words - 4 pages organizations by Michael Dell and Andy Grove. Michael Dell, the founder and Chief Executive officer of Dell Computers believed that it is very important to work closely with the customers so that their individual needs are identified upfront. Andy Grove, another computer industry giant, a cofounder and former Chief Executive officer of Intel believed in his mantra that “only the paranoid survive” (Krames, 2003, p. 135) which according to Krames


2606 words - 11 pages always there to help his employees. This shows that Dell was a good leader. References Dell business model, [online], available on:, [accessed on 1st December 2010] Kraemer, Kenneth L., Dedrick, Jason. 1998). Globalization and increasing returns: Implications for the U.S. computer industry. Information Systems Research9 (4):303–32)

Dell Ensayo

678 words - 3 pages chain strategies and his successful way of putting them in to practice played considerable role in Dell success. Computer maker Dell Inc. became the poster child for supply chain efficiency largely thanks to its "direct model," which shifted a make-to-stock philosophy to make-to-order. That transition helped Dell reduce its cycle times to levels that had been unthinkable for the high-tech industry, allowing the company to carry inventory for just

Dell Swot

1008 words - 5 pages its product offerings and services. Michael Dell described the company as a broad Computer system and services company in 2003 * Riding on the “Connected Era” in 2007-2008, Dell achieved good market share for its product lines such as PCs, servers, storage, printers and services * Entering New markets outside of USA ( emerging markets such as China) * In terms of distribution channels - Dell adopts “sell-direct-to-customers strategy

Case 2.2 Dell Computer Corp

5933 words - 24 pages Apple users who are predominately in education or high graphic quality usage fields). ƒCompetitors – Dell’s major competitors include Apple, Hewlett-Packard (HP), Sun Microsystems, Gateway, Lenovo, Sony, Acer, Toshiba and Asus. There is very little relative investment required to enter the personal computer industry as evidence by Dell’s accidence within the industry. Michael Dell started by assembling personal computers in his dorm room at

Living in Dell Time

1703 words - 7 pages QUESTIONS 1. Identify and describe all the different types or forms of innovation exemplified in this article by explaining with data and facts from this case. Product Innovation (the development of an improved product) Dell is the only computer company which offers its customers the built-to-order model. The customers can choose which components they want to have in their computer and can adapt it to their needs. Process Innovation

Dell's Supply Chain

2666 words - 11 pages CASE STUDY ANALYSIS REPORT ON SUPPLY CHAIN MANAGEMENT OF DELL COMPUTER CORPORATION Submitted By: Asmita Baz ACKNOWLEDGEMENT On the successful completion of the project, first and foremost I thank God, the Almighty without whose blessings the project would not have been a success. I take this opportunity to express my sincere gratitude towards Mr. Subrata Kar (faculty of SCM,Globsyn Business School) under whose guidance I

Matching Dell Report

1857 words - 8 pages position?When Dell Computer Corporation entered the PC Industry in 1984 the market and especially the large/midsize business market was already dominated by few major players. IBM, Apple and Compaq being the most prominent ones. Dells core business model was the assembly and distribution of own branded PCs.The competitive advantage delivered by Dell's position is that within eight years Dell had gained a market share of 3.7% and it is widely accepted

Dell Value Chain

578 words - 3 pages that produce a service on product to the satisfaction of customer. The concept of value chain also focuses attention on the types of processes in the value chain. History of DELL: * Founded by Michael Dell in 1984 * The single concept: Selling computer systems directly to customers * Designed and built the first computer system of its own design in 1985 * Was one of the first computer companies to send a technician to

Competitive Advantage At Dell Inc

4876 words - 20 pages GROUP ASSIGNMENT- CASE STUDY INTRODUCTION Michael Dell founded the Dell Computers in 1984 in USA and by 2001 the company became the world’s largest personal computer vendor, continuing to gain market share and post profits in an industry struggling with slumping sales and billions of dollars in losses. Dell sells 90% of its PCs directly to the final customer, largely bypassing the reseller channel that accounts for most of the world’s PC

Related Papers

History Of The Computer Industry In America

3036 words - 13 pages industry, government, and private laboratories--staffed with many programmers and support personnel (Rogers, 77). By 1956, 76 of IBMÕs large computer mainframes were in use, compared with only 46 UNIVACÕs (Chposky, 125). In the 1960s efforts to design and develop the fastest possible computers with the greatest capacity reached a turning point with the completion of the LARC machine for Livermore Radiation Laboratories by the

Dell Case Study

944 words - 4 pages provide very low cost to customers. The strategies that Michael Dell has in his business have contributed to the company’s success. Dell continues to grow and innovate with keeping the customer in mind and delivering superior customer value. 2. What is Dell’s position in the industry as of 2002? As of 2002 Dell was a pioneer and became a leader in customer-direct and build to order computer system.In the 3rd quarter of 2002 Dell regained the

Giving Credit Where Credit Is Due

919 words - 4 pages Giving Credit Where Credit is Due Foundations for Doctoral Study in Business (BTM7107-8) Ransford Addo Northcentral University Dr. Francis Maffei lll Introduction This research identifies two business professionals, Michael Dell and Andy Grove; their main contributions to their fields; the resistance that each encountered in presenting and furthering their programs; the

Dell's Value Chain Essay

980 words - 4 pages History of Dell Michael Dell, who is the founder of Dell Computers, began his venture towards revolutionizing the computer industry in 1980. In 1980, Dell purchased his first computer; an Apple II, and took it apart to understand how it was designed. In 1981, IBM introduced the Personal Computer (PC) and Dell saw this as a business opportunity. Dell switched from the Apple computer to the IBM PC and began to learn all of the possible