anufacturing, procurement and logistic process to reduce costs and speed up the entire supply chain. It also expanded its markets internationally and developed successful notebook and server product lines. The result has been an extraordinary run of growth in revenue, profit and market value for the company. Sales reached $18.2 billion in 1998, with profit of 41.46 billion, and Dells share of the worldwide PC market grew from 3% in 1995 to 9.2% in the first quarter of 1999. (Annual Report, www.Dell.com.) Dells stock price grew by over 40 times from 1994 to 1999, and the companys market capitalization topped $100 billion. The credit for Dell computers solid financial performance goes to Michael Dell.Crafting Strategy: Michael Dell is the chief architect of the companys strategy, the direct sales approach and the build-to-order approach are both Michael Dells contribution. Dell brought in Lee Walker, a venture capitalist as a president as chief operating officer in 1986, to provide the company with financial and managerial experience. Dell learned form him a lot about business and also learned in and out of managing a fast-growing enterprise. Walker helped Dell to turn into a fascinating executive with a character for motivating people and winning their loyalty and respect. Walker also helped Dell to select distinctive and talented people to serve on the board of directors when the company went public.Michael Dell has pushed the company to revamp the traditional industry value chain, shortening it and slashing out cost-producing activities. For example, in 1994 when Dell knew that its margins on PC selling through the distribution channels was less, he withdrew from selling to retailers and other middleman to focus on direct sales. He also push the company in the concept of virtual integration and the companys strategy was built around a number of core elements: build-to-order manufacturing, partnership with supplies, just-in-time compon...
