This simple concept of selling their PC's directly to the customers was what made them unique. They were able to find innovative ways to manage their supply chain, which resulted in a reduced cost by holding inventory and this lead to very rapid growth. They were far more profitable than their competitors from the mid 1990's – 2007. In 2007 they started to see a decline in their growth due to the recession, which led to a reduction in the demand from their customers. Dell did not have a strong enough research and development department to compete with the emerging growth from its competitors, such as Apple and HP. Apple had a unique that was taking over the market share from Dell. At this time Dell had to shift it's focus and change the way they did business. They had to start moving their business to regular retail stores, which meant a decreased profit margin. They are continuing to seek innovative ways to improve their performance and increase their market share (Jones, Organizational Theory, Design, and Change, 2007). .
Dell is headquartered in Round Rock, Texas. They bear the name of their founder and CEO, Michael Dell. They are currently a privately owned multi-national computer technology based company. The company has more than 100,000 worldwide team members who serve the IT needs of all sizes of businesses, governments, educational institutions, governments and home PC users. Their broad range of IT products, services and solutions have helped their customers all over the world. They sell personal computers, scanners, notebooks, network switches, storage devices, cameras, printers, MP3 players, software and other electronic devices. Dell's mission is, "To be the most successful computer company in the world at delivering the best customer experience in the markets we serve (Dell, 2015).".
Dell's Business Model.
Dell's business model was quite unique in the industry and was a great attribute to their success.