Staying Number One-- What will it take to remain on top?

Michael Dell built a successful computer Business.

What it took from Dell to remain on top?

When Dell was Just 19, He started the company that would dominate the industry. The computer whiz had $1000 and a novel idea: to eliminated the retailer and sell directly to the consumer.

At the time, IBM personal computers sold in stores for about $3000. After taking them apart and rebuilding them, Dell realized the components could be purchased for one fourth the price. Even with added memory, bigger monitors and faster modems the PCs could still be sold at a handsome profit. Soon he was buying components in Bulk to reduce the cost. A good business decision, but it meant his room was starting to look like a mechanic's workshop.

If Dell was a curious kid, he had his parents to thank. With his mother, a stockbroker, and his father, an orthodontist, dinner conversation frequently turned from what Michael and his two brothers were doing in school to discussions of the economy and business opportunities.

"I was quite excited about the possibilities for personal computers and how they could change society. Meanwhile as a customer, I was disappointed that when i went to computer store, the sales people didn’t really know about computers. I had this idea to sell the products. directly to the user over the phone. The Internet " he adds, "was an unimaginable gift from heaven that came ten years later.

College plans and his parents expectations intervened. But Michael Dell was determined. He drove off to the University of Texas in August 1983, in a car he'd bought with earnings from selling newspapers subscriptions. He was surprised that his mother wasn't suspicious about the three computers in the back seat of the car. By November, rumors reached his parents that he wasn’t attending classes. on a surprise visit, they caught his son red-handed. Michael's father reprimanded him then asked him what he wanted to do with his life. He told his dad that he wanted to compete with IBM.

Although Michael agreed to focus on his studies, the business possibilities were too compelling to ignore, and the timing couldn't have been better. The public was becoming more interested inc computers and wanted more sophisticated models, but no non was producing them. In early May, a week before his final exams, Michael started Dell Computer Corporation with $1000. He took his exams then dropped out of college at the end of the his freshman year. It was time to try out his direct to the customer business model.

Three years later, the company did a private placement, a stock offering a small group of investors. "By then", Dell had already achieved annual sales of about $150 million. He was 22 years old then.

Dell Found out soon enough that necessity is the Mother of Invention. He learned by doing and by making mistakes. And He got smart people to help him out. Today Dell is a $57 Billion company with the leading market share in the United State's.

In March 045, at age 39, Dell stepped in as Chairman and continued to focus on research and development. But soon there were sings of trouble. The company began losing market share because of competition from much more aggressive rivals such as Hewlett-Packard and Lenovo. Dell was also criticized for poor customer service. It snow facing investigations into its accounting practices. This past January, the struggles forced Dell, now 42, to return to the company he founded, to tackle the issued head-on. In 48 hours, he would put in a new management team. Of his marketing brainchild- sell directly to the customer - Dell told employees in an email " The Direct model has been revolution but it is not a religion. . Hew intends to improve it and look for new manufacturing and distribution models. The goal is to give customer's what they need and make the technology simpler and easier to use.

As a technology leader, Michael dell wants to use his position to solve society's bigger problems, like health care. "If you go to your grocery store, there is more technology there than at your doctor's office. Imagine the last time you went to the doctor, you see all those files. What is all that about? That is nonsense. Try to take your medical information from one doctor to another It is a system that can be dramatically improved. Our industry has a big role to play"

Dell is also looking beyond the US, specifically at the needs of the next billion PC users. " We have a emerging markets in India. Poland and Brazil, the former soviet republics and China."

"Most importantly, Dell says he will deliver the kind of support his customers expect, both in tools and technology. One new tool, called DellConnect, enables the tech staff to connect to the customer's computer and fix problems on the spot or show the customer how to do it. In Feb 2007', the company rolled out Idea-storm,, a forum for users to brainstorm what works, what doesn't and what new features they'd like to see. "We take the customer’s input and design the products and services." says Dell. As for how long the re-organization will take, Dell says " it took us some time to get into these challengers and it will take us some time to get out of them. I think 18 months.

If Dell needs any reminders that he can take the company to new height, he can think back some 20 years earlier. "No one told me that we couldn't do it, and if they did, I wasn't listening." Recently he challenged employees,. If they are to be competitive they will need to make significant changes and take "well though our risks".

hmmm......Thats exactly what made Dell a Success story. Cheer Knowledge and Perfect blend of enthusiasm and dedicatedness can make up a success story. Its a bet.