Product details

Six years after dropping out of college to focus on his own business reselling PCs and preformatting PC hard disks, Michael Dell had grown his company''s annual sales to more than $500 million. Dell Computer earned a reputation for selling quality products and services at less expensive prices than its competitors. By 1999, Dell''s revenues were more than $18 billion. Students consider how Dell''s business model - institutional sales, e-commerce, and build-to-order selling - has fueled this meteoric growth. This case can be used to study Dell''s unique ''pull'' model based on direct selling, build-to-order, mass customization, and virtual integration of the supply chain - all turbo-charged by the Web. Dell''s situation can be contrasted with Compaq, which sells through traditional channels and uses a ''build to forecast'' or ''push'' model. The case contains both Dell and Compaq financial data. Another discussion topic is whether the Dell model, which competitors are examining closely, will work internationally and in the G3 wireless world. The case can be used in any e-business program or in any marketing or supply chain program. See also the second case ''Dell Computer: Business to Business Over the Web in 2001'' (UVA-C-2153).