The History of Dell: Computers, Business Model, Competitors, and the Internet
Dell is one of the most successful IT companies in the world. Dell's success is most noticeable in the PC market. We conducted a detailed analysis of its history, highlighted key events, measured sales levels, and tracked stock price performance.
Our goal: to thoroughly understand the business of a large company, identifying the key reasons for its successes and failures, and explore the topics covered on our channel, Business Polymers. We want to understand how business works in detail.
We recommend watching The History of IBM: • История IBM: первые персональные компьютер...
Dell is a very interesting company. Starting out in 1984 with the release of an ultra-low-cost IBM PC clone, they were then called PC's Limited. Their success is attributed to the skillful use of guerrilla marketing. They continued this way until 1988, when competition intensified. IBM began suing everyone over their hoard of patents (partly for good reason, partly to intimidate). Michael Dell began looking for investors to strengthen its position. The company begins preparing for an IPO, which requires changing its name from the dull PC's Limited to the catchy and trustworthy Dell Computer Corporation. Michael Dell becomes a business star. Why are you reading this? Watch this episode on YouTube instead.
In 1996, Dell becomes the first major company to successfully launch an online store, leading the world to believe in the practical benefits of the internet. It turns out you can take a business, multiply it by the internet, and achieve success and money. This naive logic leads to the dot-com bubble (from www.name.com).
In 2000-2005, Dell becomes the leader in the PC market. Compaq is dead, IBM has left the sector, and HP is stronger than ever. Thanks to wise management and bold advertising, Dell is the market leader worldwide! Michael Dell is retiring. Not really.
Major competitors of Dell Computer Corporation (1984-2000): Compaq, IBM, Hewlett Packard.
After 2000, competitors changed: Hewlett Packard, Acer, Asus, Apple. Smaller competitors before 2000: Olivetti, WYSE, Apple, Osborne, Xerox, Epson, Toshiba, Asus, Acer. Why do we need this list? It allows us to compare different business strategies: in the markets where competitors succeeded, we can see HOW they did it. If they failed with a new product or strategy, we again compare these processes with Dell's strategy.
By 2010, Dell was thriving in the following markets: desktop computers, data storage servers, printers, monitors, and laptops. From 1999 to 2006, Dell succeeded in the PDA market and failed in the smartphone market. There are also much smaller sectors. In 2010, Dell changed direction; they realized the PC market was dying. It was time to shift their focus to software and cloud services. They acquired various assets, and in 2017, they acquired EMC, leading to a complete business restructuring and a name change from Dell Computer Corporation to Dell Technologies.
At the end of the video, we'll show you a computer price list where you can search for Dell prices in Russia. We'll also summarize this business case.
CONTENTS:
00:00 - Introduction
00:54 - Welcome
01:20 - The Birth of the IBM PC
01:48 - The First Personal Computers
02:30 - The Creation of the IBM PC: Components, OS
02:54 - Sales of the First Generation IBM PC 5150
03:30 - Reverse Engineering
03:55 - The Beginning of the DELL COMPUTER History
04:40 - Turbo PC 1985
05:50 - PC Market Overview
06:18 - Reasons for Dell's Success
07:30 - The Second Generation - IBM PC XT 1984
08:07 - Direct Sales Model
08:53 - IBM PC vs. Dell PC Price Comparison
09:39 - Guerrilla Marketing
10:11 - Overview of Processor Evolution
11:02 - IBM PC AT Commercial
12:04 - Interview Michael Dell
13:15 - A 16 MHz Computer
13:47 - Dell Preparing for an IPO
14:17 - Name Change from PC's Limited to Dell Computer Corporation
14:40 - Dell IPO Results 1988
14:58 - Michael Dell Makes Covers
15:39 - The First Laptop 1990
16:12 - The First Server 1990
16:50 - Dell's Breakthrough - The Online Store 1996
17:30 - How the Dot-com Bubble Was Born
19:23 - Dell Inspiron - The Most Successful Laptop Line
20:03 - Dell Power Eage Servers for B2B
21:08 - Dell's Success in the PDA Market
22:03 - Dell Became the PC Market Leader
23:04 - Advertising Campaign: Dude, You're getting a Dell!
24:36 - Smartphones from Dell
24:58 - Dell - a leader in several markets in 2005
25:42 - Dell laptop explosions
26:11 - Dell is actively acquiring various assets
27:03 - New strategic plan 2010-2025
27:40 - Share repurchase, change in price
27:57 - EMC acquisition and Dell restructuring in 2015
28:37 - PC market history review
29:10 - PC market decline
29:58 - Michael Dell's performance evaluation
31:20 - Dell stock price review
31:39 - Summary
32:39 - What did Michael Dell invent?
34:57 - Dell's presence in the Russian market