Harvard Business School Press,pp. Dell achieved enviable efficiencies using the Internet to coordinate the orders of consumers with its own orders of parts from suppliers.
Dell establishes subsidiaries in Australia and Japan. Battles erupted over advertising budgets and the number of salespeople required for corporations and resellers. Following on the success of its direct sales over Dell background Internet, Dell opened an online superstore of computer-related products in Dell background Dell markets desktop personal computers, notebook computers, network servers, workstations, handheld computers, monitors, printers, high-end storage products, and a variety of computer peripherals and software.
Surviving Global PC Downturn, Diversifying When the global PC industry fell into its worst slump ever duringDell responded by initiating a price war to which its rivals were slow to respond, providing Dell with a chance to further increase its market share.
The company also opened a manufacturing facility in Penang, Malaysia. Founder Michael Dell holds 12 percent of the company and will remain chairman of the company after stepping down as CEO in July As a result, by Dell managed to gain for the first time the top spot globally in PC sales, with a 13 percent worldwide share.
Battles erupted over advertising budgets and the number of salespeople required for corporations and resellers. In it established a production and customer center in Xiamen, China, raising the number of its overseas plants to three.
The consolidation also offered opportunity, however, as Dell fought to win market share from companies going out of business. In addition to fielding questions and taking orders, sales staff were trained to promote products.
Dell considered itself as much a marketing company as a hardware company, and its sales staff played an important role in its successes. With businesses keeping a tight rein on their PC spending, Dell in attempted to gain further sales from consumers by setting up kiosks at shopping malls where customers could see and try out Dell computers, printers, and other products before placing their orders online or by phone.
Dell attributed many of the problems to internal difficulties caused by its incredible growth. Early in it debuted its own line of printers aimed at both businesses and consumers.
Dell placed ads in computer magazines, gearing his merchandise to buyers who were sophisticated enough to recognize high-quality merchandise at low prices. The company gains the leading share of the global PC market.
During the early s Dell also attempted a foray into retail marketing, the most popular venue with individual consumers. Dell also introduces the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory every three days on average.
Dell agreed to allow the stores to sell the products at mail-order prices, a policy that soon caused Dell a lot of grief. Dell's diversification, coupled with large increases in shipments of high-profit-margin products such as servers, notebook computers, and storage equipment, propelled the company to new heights in Later that year Dell gained a toehold in the cutthroat consumer electronics industry by introducing LCD flat-panel televisions, digital music players, and an online music service.
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