Dell Computer Corporation

Michael Dell’s View of Dell Computer’s Biggest Challenges

Michael Dell believed Dell Computer’s biggest challenge in the marketplace was to gain as much acceptance for the company’s direct business model outside the United States as it had gained inside the United States. But an even bigger challenge, he believed, was gathering enough talented people to help the company pursue the opportunities in other countries. Dell was active in recruiting foreign nationals graduating from U.S. business schools. Those who hired on with Dell were sent to Austin, Texas, for a couple of years to learn about Dell and the Dell model and to work in various parts of the company’s operations. Then they were given assignments to help in Dell’s global expansion effort. Michael Dell believed the company needed the expertise of foreigners who knew Dell from the inside and who could help Dell Computer understand different cultures and respond in a sensitive manner to local customs and behaviors.

For the most part, Michael Dell was not particularly concerned about the efforts of competitors to copy many aspects of Dell’s build-to-order, sell-direct strategy:

Michael Dell’s near-term vision was for the company to reach $50 billion in annual sales by growing more aggressively in the consumer and small-business segments in computer services, by increasing its market share in foreign countries, and by selling more powerful and more expensive servers to corporate customers.

Copyright © 2000 by Arthur A. Thompson and John E. Gamble. All rights reserved.

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