Internal and External Technology Review
The rise of the Internet and its related technologies are the driving force behind the dramatic changes in business from the early 90’s to now. Dell has seen an increase in revenue from $12.3 billion to $31.2 billion over the past five years. During that same time frame the company has seen net income rise from $944 million to $1.8 billion (2002 Annual Report). All of this revenue and profit is from a business that started with an idea, and a relatively small amount of capital, by Michael Dell approximately 20 years ago. To this day, Dell insists on making customer service its primary focus. From its “stoner” Dude successful common-man advertising to its Website storefront that demonstrates how it is keyed to appeal to the end user, Dell has been successful from attracting and retaining consumers to branding its products indelibly in the American lexicon of consumerism. Dell continues to retain competitive advantage through its goal of consumer loyalty by thwarting off competition from companies like Gateway via its appealing advertisements and promotions. “Dude, you’re getting’ a Dell” is now a part of American culture, not to mention the ad campaign appeals to the demographic businesses most love. By offering competitively priced, “hip” products with a teen spokesperson who has captured the hearts and souls of those teens everywhere wanting a computer, Dell cannot be touched by the competition when it comes to the appeal and effectiveness of its ad campaign. Only AOL’s “You got mail” is as effective in the techno-ad market, but, then again, as a recent article in the New York times parodied the owners of AOL (due to their economic woes), “You’ve Got Jail.”
The technology at Dell is bold, yet it is smart for a company such as Dell. The company’s drive to be one of the top computer providers in the world has been achieved. Actually, Dell is...