Founded in the year 1984, Dell is a multinational Computer Technology Company based in the USA. The business model of Dell enables the company to design, develop, sell, repair efficiently, and support computers, associated products, and services.
In this post, we will be diving deep into the Dell Business Model and understand how company channelizes its business around the world and generates revenues. So, without any more ado, let us dig deep into the world Dell.
Introduction to the Business Model of Dell
When it comes to telling people about the company Dell, there is just one thing that anyone can say about the company that it is one of the largest technological corporations in the world that has been provided to the people in the industry.
With the help of the amazing computer services and products that are provided to the people in the best way, the company has managed to have the widest customer base with a revenue-generating business model.
So, people need to know about the business model of the Dell Company to make sure that people can understand what it does and how it is helping the industries and the customers in the best way for sure.
Dell is involved in manufacturing and selling-
- Personal computers (PCs)
- Data storage devices
- Network switches
- Computer peripherals
- MP3 players
- Electronics built by other manufacturers
A Little Knowledge About Dell Company
The founding of the company happened in a particular dorm room, and now it employs more than 145,000 people in the U.S. and around the world.
The founder of the company is Michael Dell, and he was a freshman who studied at the Texas University and that too in Austin. It was there that he found an idea of selling personal computers to the people who need it.
The interest was motivated from all the beliefs that selling of the systems in the most direct way will offer a pretty good proposition on the best way for the customers. They will be able to have lower costs and better customization as well.
The first name that he thought for the company as PC’s Limited and he advertised for the company. Then he advertised the company with the national computer magazines in an efficient and lucrative manner.
The consumers would want to call and place all the orders that they have for the company, and then they also specified all the features that they desired from the company.
Michael would begin to purchase the wholesale computers that would bear a resemblance to the IBM models that are presented in the best way to the people.
The initiative came to be a great form of success for the people for sure.
Within a very short period, there is no doubt that there were so many opportunities for sure. The initiative came to be a pretty success for sure.
There were a great increase in sales and the capital increase as well.
However, with the increase in sales, the company came to be known for the people in the best way. More and more companies wanted to join with Dell, and there is no doubt about the fact that Dell became one of the best companies to provide the computers.
In the year 2014, Fortune 500 listed Dell at number 51.
Company is now headquartered in Round Rock, Texas, U.S. and it is serving worldwide.
Well, when it comes to the business model, there are certain things that people will be able to know about it in the best way. We are here to tell you about it as well.
Diving Deep into the Business Model Of Dell
Knowing about the business model of Dell will provide you with knowledge and information about the different processes that take place in the company.
Hence, there is no doubt that the business model will be very useful to people. Here we are going to talk about it a little bit to make sure that you are able to get the best benefits of the model.
The customers that are present in the company have some different needs. The business model focuses more on the fulfilment of the needs and requirements that customers have. As per the customers’ need, the company makes different types of products. Let us have a look upon different types of products Dell manufactures-
Types of Products made by Dell
#1. Business/Corporate Class
- OptiPlex (office desktop computer systems)
- Vostro (office/small business desktop and notebook systems)
- Dimension (home desktop computer systems)
- Latitude (business-focused notebooks)
- N Series (desktop and notebook computers shipped with Linux or FreeDOS installed)
- PowerEdge (business servers)
- Precision (workstation systems and high-performance “Mobile Workstation” notebooks),
- PowerVault (direct-attach and network-attached storage)
- PowerConnect (network switches)
- Force10 (network switches)
- EqualLogic (enterprise-class iSCSI SANs)
- Dell Compellent (storage area networks)
- Dell EMR (electronic medical records)
#2. Home Office/Consumer class
- Inspiron (budget desktop and notebook computers)
- Alienware (high-performance gaming systems)
- XPS (high-end desktop and notebook computers)
- Venue (Tablets Android / Windows)
#3. Peripheral Class
- USB key drives
- LCD televisions
- Dell monitors include LCD TVs, plasma TVs
- Projectors for HDTV and monitors
#4. Service and Support Brands
- Dell Solution Station
- Dell Support Center
- Dell Business Support
- Your Tech Team
- Dell Everdream Desktop Management
In addition to these, there are different sections of the business model of Dell as well-
Different Sections of Dell Business Model
#1. Products and Services for the Large Enterprises
This would include the large national as well as the corporate firms that are global as well. These are the companies that would utilize all the different data centres which are provided by the Dell Company and also make use of the computing solutions as well.
Being a Computer Technology Company, Dell plays a key role in providing the best suited technological solutions to these companies.
#2. Products and Services for the Public
The Public section of the company includes all the different health care and government properties as well. Apart from that, the education institutions, as well as the law enforcement agencies, are included in the list as well.
These tend to utilize all the important technology solutions that are provided by the Dell Company. By providing informative solutions to the Public enterprises in the best way, the Dell Company is able to generate the revenue for performing all the important operations that tend to take place in the company.
#3. Products and Services for Small As Well As Medium Businesses
Another part of the customer base for the Dell Company includes all the small as well as the medium-sized businesses too. These are the businesses that tend to use all the amazing solutions that are provided by the Dell Company to the people.
There is simply no doubt about the fact that the services provided to these customers are a bit different from the other services that are provided to the customers.
These small and medium businesses tend to use all of the amazing cloud computing, server virtualization solutions, workforce mobility, and the other important solutions that are provided to the people in the best way. That is one of the main reasons why Dell Company is known to be one of the best options for the people.
#4. Products and Services for Consumer
Well, this is the last type of customers that the business model of Dell targets.
These people are the ones that tend to utilize some of the most basic and useful solutions that are provided by the Dell Company.
The primary services that are utilized by the people who are consumers of the company would be entertainment, gaming as well as mobility. There is no doubt about the fact that Dell Company is able to provide some of the best services to the people these days.
This can be considered as one of the most important reasons why Dell Company is one of the most popular service providers to the enterprises and consumers in the IT industry.
By providing all the important services to the people, there is simply not a single speck of doubt about the fact that Dell Company has managed to create some of the best solutions for the people and companies that are in need for it in an efficient manner.
How does Dell Make Money – Revenue Generation via Business Model of Dell
There are different value propositions that are provided by Dell Company to the people who are in need of it. Some of the most important value propositions that are provided by the company are customization, brand, and price as well.
With the help of these value propositions, Dell Company is able to provide the best options to the people and earns the money which is essential in order to perform all the operations and functions which can be used in order to have the best results for the company as well.
Some of the effective ways that Dell incorporates to sell its products and services are-
1) Direct Selling
In this, Dell provides its PCs, Notebooks, Accessories, and other products on its site, from where it can be shipped to the address of the customers.
In this, different online channels are used by Dell for selling its products and services for widening its reach and optimizing the sales.
3) From Push-to-pull
In this model, Dell makes its services more focused on customer requirements. Hence, the consumer can tell the company to customize any part as per their need, and the company will do that to have a more satisfied and loyal customer base.
4) Mass Customization
The company can now predefine the choices of their potential customers, so customization of the products can be done in mass production as well.
With the help of the customization features, the company will be able to provide certain choices to the people, and then the customers will be able to select all the important features that they would want from the company.
These are the elements which can consist of the processor, operating systems, memory size, and so many other important factors as well.
Not just that but the company also provides some low prices on their solutions and options for the people so that they will be able to afford all the services that they provide for sure. There is no doubt that they will be benefitted from the best options.
With the help of such models to generate revenues, the company made US$78.7 billion in the year 2018.
Wrapping it up!
So, that is all you need to know about the business model of Dell Company.
Being a Computer Technology Giant, Dell Business Model is writing new success stories for 35 years. From personal computers, servers to peripherals, smartphones, and televisions, Dell comprises one of the most rock-solid and revenue-oriented Business Model.
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