ess model. Dell has stayed faithful to their original business models, which combine direct sales and build-to-order production. This model is simple in concept, but is quite complex in execution, and other PC makers rely on resellers, retailers and other agent to carry much of the burden of marketing and sales. Dell has to reach out to customers largely through its own efforts. Dell also had to fill each order to meet customer specifications, a process, which puts heavy demand on shop floor employee, suppliers, and delivery systems. It took Dell 15 years to achieve its present skill in marketing the direct model to work, a concept and philosophy of Michael Dell and other firms had difficulties in trying to imitate his philosophy. Michael Dells near term vision was for the company to reach $50 billion in annual sales by growing aggressively in the consumer and small-business segment in computer service, by increasing its market share in foreign countries and by selling more powerful and more expensive server to corporate customers (pg. C-173).Setting Objectives: As a chief strategy manager of Dell computer, in 1990, Michael Dell set an objective for the company to become one of the top three PC companies. By 1997, Dell Computer has net sales of $1,759 million and net income of $518 million and had a market share of 5.8%. Dell computer became the third largest PC Company in the world at the end of 1997. Dells philosophy and practice includes respecting the three golden rules at Dell: (a) Disdain inventory (b) Always listen to the customer and (c) Never sell indirect. He also said Beyond winning and satisfying your customers, the objective must be to delight your customers not just once but again and again (pg. C-142). Although Dell has gained the acceptance of the companies direct business model in the US, Michael Dell believed the Dells biggest challenge was to gain the acceptance outside the US. The company also renovated its design, m...
