Dell is known to modern man as a manufacturer of good and reliable laptops and computers. Now it continues to develop its own technologies, demonstrating successful stability in the global market, despite the rapid ups and downs. Few people know, but it was Michael Dell, as the founder of an American company, who started this business with a start-up capital of only $1,000 in his small university dorm room. For decades, Dell has shown confidence in its capabilities - its market capitalization is in the billions of dollars. Growing up in a family of dentists, Michael Dell sold magazine subscriptions at an early age before starting his first IT company, which helped him understand the principles of direct selling marketing that would later inform Dell's growth strategy. Dell, being a student at the University of Texas, was inspired by the Apple II computer he earned from selling postage stamps and began to research the relevance of PCs in the market. He was also interested in the needs of customers.
At that time, the most indicative company in development was IBM, which sold computers through intermediaries for almost $ 4,000 - almost twice as much as their cost. At that time, IBM did not offer to change the PC configuration: consumers had to suffer both with this nuance and with the fact that the overpayment for a computer was about 40%. Dell realized that he had a chance to make a difference and empower customers. Michael decided to found PC's Limited, which eventually forced him to drop out of school. At the beginning of the journey, the starting capital of PC's Limited was set at only $1,000. Dell bought the remaining components in warehouses and placed ads in the newspaper, thanks to which he received individual orders for assembling computers. Sold Dell assembled computers at a price below the market by an impressive 15%. All of this is made possible by the use of a direct sales marketing model, which significantly reduces sales costs, when the assembly of a particular product does not begin until after the order has been placed.