The PC industry is one of the strangest in the world. There is probably no other
type of product that is so technologically sophisticated, sells for so much money, and yet
is sold by so many companies for so little profit. Dell, Gateway, IBM, Compaq and HP
(one entity), and Apple are the main rivals in this industry, and the competition is fierce.
Dell and Gateway have been the most innovative by including the "just-in-time"
manufacturing to meet consumers specific needs, and all of these computers are hard to
decipher because of there high compatibility with each other (not Apple). The only thing
that really sets them apart is their prices and reputation. The PC industry is a complex
network of companies involved in different industry segments, from microprocessors and
other components to complete systems to operating systems and applications. Depending
upon the industry segment, these firms specialize in different activities, from R&D to
design, manufacturing, assembly, logistics, distribution, sales, marketing, service, and
Dell Computer Corporation is the focus of the case. The time of the Dell case is
from 1994 to 1999. Michael Dell established Dell Computers in 1984, which captured a
unique position in the personal computer (PC) industry. The company introduced the
concepts of selling PCs directly to customers; offering custom configuration to all
customers; and providing direct, toll-free technical support and next-day, on-site service.
Dell's SIC code is 3571. SIC 3571 establishments, such as Dell, primarily engage in
manufacturing electronic computers. Electronic computers are machines which: (1) store
the processing program or programs and the data immediately necessary for execution of
the program; (2) can be freely programmed in accordance with the requirements of the
user; (3) perform arithmetical computations specified by the user; and (4) execu...