Dell Computer Corporation is the world's largest direct computer systems company, with revenues of $25.3 billion for the fiscal year ended January 28, 2000. Michael Dell founded the Dell Computers in 1984 with a simple concept: selling computer systems directly to customers. This would allow Dell to understand and satisfy the computing needs of customers. Dell is in the Computer Hardware Industry of the Technology Sector. The major companies that Dell competes with include Apple Computer, Compaq, Gateway, Hewlett-Packard, IBM, Sun, Silicon Graphics, NCR and Micron Electronics. Dell is No. 1 worldwide in market-share and is also the leader in liquidity, profitability and growth among all major computer systems companies, with approximately 37,000 employees around the globe. The company also ranks No. 1 in the United States, where it is the leading supplier of PCs to business customers, government agencies, educational institutions and consumers. 803 companies are classified as Electronic computer manufacturers, with value shipments (VS) of 38,205.9 (million) dollars. The concentration ratio, or % of VS Value Accounted for by 4-largest companies is 45%. The concentration ratio is intended to measure the amount in which an industry is dominated by large firms. 45% indicates a high concentration factor, which is evident in the computer industry, where five big companies (IBM, Compaq, Gateway, Hewlett- Packard, and Dell) continue to drive the industry.
How Dell's Major Competitors are Doing?.
The computer industry has rapidly become one of the largest in the world. While annual worldwide unit sales of PCs are growing, revenue growth has stagnated. IBM still sells PCs--at a loss--to businesses, but it has dropped out of the U.S. retail PC business. Compaq recently lost its lead as the global leader in PC sales and has not become a top player in the systems-integration business despite its 1998 purchase of Digital Equipment.
