Dell Computer
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In 1965 the war in Vietnam continued to escalate, President Johnson signed the Civil Rights Act, and private enterprise launched the first commercial satellite to offer telecommunication services to industry. Perhaps it was a propitious happening, then, that in such a year of social transformation and technological innovation an infant christened Michael Dell was born. Nineteen years later in 1984, with $1,000 capital and a revolutionary idea applicable to the personal computer industry, Michael Dell launched Dell Computer Corporation (Michael, 2001, 1). The revolutionary idea, much like that had by the founder of Amazon.com, Jeffrey Bezos, eliminate the middleman who adds little but cost to the sales equation. Today, Dell Computer Corporation is the world’s number one direct-sale computer vendor and among the world’s top personal computer manufacturers counting Compaq, Gateway, and IBM as its chief rivals. Michael Dell is the longest tenured CEO in the personal computer industry and still retains 12% of the company (Dell, 2001, 1). Dell now operates sales offices in 34 countries with a staff of more than 40,000 employees (Michael, 2001, 1). From 1984 when the company was founded through 2000, the company grew from $6 million to $32 million (Michael, 2001, 1). In 1996 and 1997, Dell was the top-performer among Standard & Poor’s 500 and the Nasdaq 100, as well as the highest performing U.S.
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als have the pick of the litter so-to-speak when it comes to leveraging negotiations with sellers. In fact, the recent slowdown in Dell growth has harmed the companies it depends on for its computer parts since Dell, unlike rivals IBM and Compaq, outsources its personal computers “Jabil Circuit, Inc., an EMS provider, warned analysts that it expects lower revenue for its first and second quarters of fiscal 2001 based on flat PC sales” (Serant, 2001, 3). While many suppliers do like to form exclusive contracts with major personal computer manufacturers, industry firms enjoy the clout of being able to deal with those who can offer them the best price at the highest quality.
Individual buyers have a very low degree of negotiating ability with respect to price when it comes to firms in the personal computer industry. While many firms have formed alliances with Internet Service providers that have dramatically reduced the cost of personal computers, firms typically do not negotiate discounts on an individual purchase basis. Increased competition and lower prices across the industry have made some firms resort to promotional discounts and other methods of lowering price such as the rebate received when purchasing a long-term Intern
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Some common words found in the essay are:
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Approximate Word count = 3856
Approximate Pages = 15 (250 words per page)
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