Dell Inc

In the 1990s, with more widespread use of the Internet, sales through Dell Computer Corporation's online business swelled, and it became a dominant market leader. By 2010, Dell Computer Corporation had changed its name to Dell Inc. (Dell). Dell employed 96,000 people worldwide and was ranked 38th on the Fortune 500 list. But in the summer of 2010, Dell was faced with dwindling market share, myriad customer complaints, vendor troubles, and a blistering SEC complaint. How did the company that once seemed so untouchable end up in this situation? Excerpt UVA-S-0185 Rev. Jul. 20, 2011 Dell Inc. In 1984, Michael Dell launched PC's Limited out of his dorm room at the University of Texas at Austin, in Austin, Texas. He sold IBM-compatible computers made from stock components. It wasn't the technology that set PC's Limited apart from other computer retailers—it was its direct sales approach. He believed that by selling directly to customers, PC's Limited would be in a position to receive direct feedback from its customers, gain a true understanding of their needs, and be able to respond quickly to feedback to provide exactly what they needed. In 1985, Michael Dell dropped out of school to focus on the business, which was an instant success. In June of 1988, the company—by then known as Dell Computer Corporation—went public. At the time of the IPO, four-year-old Dell Computer Corporation's market capitalization was $ 80 million. In the 1990s, with more widespread use of the Internet, sales through Dell Computer Corporation's online business swelled, and it became a dominant market leader. In 1994, Kevin Rollins, a Bain consultant and the future CEO of Dell Computer Corporation, advised the company to cease its minimal sales through retailers and focus solely on direct sales. . . .