A path to reclaim industry leadership for Dell



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The high-tech industry is an extremely fast-paced and highly competitive one with constant changes and with companies entering and exiting the playing field in a matter of months. Within this ruthless environment Dell Inc. emerged as a singular player in January 1984 and rose to be the world’s largest personal computer maker in just seventeen years in 2001. One has to ask what made Dell so special and how did Michael Dell make his fortune from his dormitory room at the University of Texas at Austin. Furthermore, what explains Dell’s decline from its number one position in the world in 2001 to barely number three now as it stands behind Acer and clearly behind the current industry leader Hewlett-Packard?

This paper is an attempt to take the reader through the history of the rise and fall of Dell. More importantly, it seeks to identify the weaknesses as well as strengths, and advantages as well disadvantages of the business model of this company. Finally, the paper will outline the necessary steps that Dell must take to reclaim the crown of the largest and most successful computer manufacturer in the world.