DELL strategy

Dell founded in 1984 by Micheal Dell headquartered in Texas, has revenues of $ 90.6 billion for 2019.

Dell sold directly to buyers than through dealers.

Advantages

• 1. bought components from suppliers instead of making them
• 2. little inventory, low costs
• 3. no R&D expenses
• 4. few employees
• 5. risk shared with suppliers
• 6. Dell shared customer demand with suppliers
• 7. new models, easy to introduce as less old chips to sell off
• 6. low inventory helped him to take advantage of less prices and buy then..

All these kept his average costs low..

Making Dell a very profitable company.

George..