Looks at the industry pressures, prior to e-commerce, that drove Dell Computers' early formation and business rationale.
Written in 2008; 830 words; 3 sources; MLA; $ 29.95
Paper Summary:
This paper explains that the computer industry climate has historically been defined as a the buyer's market characterized by the mentality of the consumer. The author points out that,although operating margins always have been under pressure in the PC industry, Dell was able to reduce dramatically overhead and operating costs by utilizing direct sales of PCs originally through the phone and post. The paper stress that Dell did not maintain an integrated network of retail outlets and distributors; therefore, it was able to lead the market in terms of cost and to offer the most customization design to meet the customer's individual needs.
Table of Contents:
Historical Background
Industry Prior to E-Commerce
From the Paper:
"One key competitive factor within the computer industry throughout its historical development is that the Wintel combination made it difficult for the PC manufacturers such as Dell to maintain wider operating margins. This is apparent because Intel and Microsoft were able to artificially inflate their operating margins because the PC manufacturers could not readily contract with another OS provider or another processor manufacturer other than AMD which was relatively small compared to Intel. "
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