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Essay / Research Paper Abstract
This 5-page paper discusses Dell Inc., and how it made its niche in the market through a direct-to-consumer model. Bibliography lists 5 sources.
Page Count:
5 pages (~225 words per page)
File: D0_MTdellcomp.rtf
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Unformatted sample text from the term paper:
it was assumed that the best, and only, way to sell such machines was through authorized distributor centers. In this way, computer developers such as Apple and IBM believed that
they could control the types of computers that users would buy, and could also ensure that distribution, and service, took place among a small collection of authorized sellers, so as
to ensure a fairly strong control of the market. The problem with this method of distribution was that the computers were expensive.
With electric typewriters running anywhere from $40 to $200, personal computers were retailing for around $2,000 - a price point that was a little high for the average person who
simply wanted to type a document or figure out accounting processes. But when Michael Dell launched Dell Inc. in 1984, he
turned this assumption of selling computers to the public around. Rather than accepting the fact that computers needed to be sold through third-party distributors, Dell launched a direct-to-consumer sales and
distribution model that ended up completely revolutionizing the microprocessor industry. Dell, a Houston native who enrolled at the University of Texas in
1983 to study pre-med, was also establishing a business that sold random-access memory (RAM) chips and disk drives for IBM PCs (Dell Inc., 2009). To do this, Dell bought products
(at cost) from the IBM dealers, who, at the time, were required to order large monthly quotes of PCs from IBM (Dell Inc., 2009). However, given that computers were still
too expensive for most people to own, the authorized sellers, more often than not, found themselves with more supply than demand for it (Dell Inc., 2009). Dell, in turn, sold
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