h reduced Dells assembly time by 75 percent and the productivity per square foot of assembly space was doubled. (Annual Report at www.Dell.com)Dell followed the Compaqs lead by creating a financial services group to help customers with financing their PC networks, which was considered a good effort to add value for its customers. Dell has also responded to change in the PC marketplace by pursuing greater and greater market segmentation. In the second half of 1996, Dell introduced a low-end PC server costing under $25,000 to the market. There were several drivers behind Dells entry into servers. The use of server by corporate customers was growing rapidly. The margin on servers was large. Moreover, purchase price was not as significant factor in selecting which brand of servers to buy because servers required far more in the way of service, support and software (pg. C-160). Michael Dell has lead the evolving refinements in the companys strategy. Dell introduced a new line of PCs revealed in three different models, which had new features and equipped for easy, quick Internet access price ranging from $999 to 2,349. These new Web PC could be plugged in and made internet ready, and they also came with a monitor, printer, technical support options and one-year subscription to Dells Internet service, Dell Net. In order to change the PC market with more segment, Michael Dell said, We had to meet the challenge of extending the Dell brand beyond our strong desktop and notebook franchises. The next logical step was servers. Entering the server business was not only a large opportunity but also clearly a competition necessity. An explosion of networked and internet worked systems was occurring throughout corporations, which means that our present customers- the techno-savvy, second-or third-time buyer who were our core market- would be looking to make big purchase (pg. C-160).In conclusion, it should be clear that Michael Dell in an effective CEO ...
