Dell is a well known computer company that has been around for over 20 years. Most people recognize the name and thousands of people buy new Dell products every day. However a lot of people don’t know the history behind Dell or how it became a Fortune 500 company in such a short amount of time. There are lots of small businesses across the country but somehow Dell went from a small company founded by a man who went from college student with a dream to a multi million dollar owner with a very successful business.
Michael Dell is the founder of the famous computer company. He started his business while he was still in college with only $1,000 for start up costs. His idea was that he could make computers from stock IBM components by dealing with the customers directly. If he had a better understanding of what people wanted he could make customized computers to meet their needs better than the manufacturers that were selling computers. His business did well on and after his parents supported his idea with $300,000 it really started to take off.
Just one year after he started his business, Michael Dell released a computer that he had designed himself. It sold on the market for $795 and quickly became a popular computer. It was advertised in computer magazines in such a way that people could choose from various options when they ordered their computer. This was one of the first really customizable computers that had ever been sold. While people had the option of buying the parts to make one it was more convenient to order it through Dell, which was then known as PC’s Limited. It was also cheaper than buying retail. A few other companies had used this same concept but it was Dell that really made it successful. They made over $73 million dollars by using that model in their first year.
Dell got its current name just a couple of years after their business took off. The year after the name was changed the Dell Corporation had to make some adjustments in order to compensate for the fact that there were a limited number of retailers willing and able to sell their products. They began building on site service centers where customers could go and walkthrough the computer customizing process. Over the course of a few years these service centers became international.
As technology and the Internet grew, Dell was able to create website where people could purchase computers online from the comfort of their homes. They had the step by step process available so that people could see which parts they could upgrade which made customizing their computers even easier. They also began to dive into the world of TVs and other entertainment technologies. Everything Dell produced was available on their website. They also decided to purchase the gaming computer company called Alienware although they let it continue to work under its own management. Over the years Dell has made various changes to what customers could upgrade and how they could personalize their computers and it’s for that reason that Dell is one of the top 50 Fortune 500 companies.
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