Dell

Dell Inc.
Type Public
 NASDAQ: Dell
HKEX: 4331
Industry Computer Systems
Computer Peripherals
Computer Software
IT consulting
IT services
Founded Austin, Texas
(November 4, 1984 (1984-11-04))
Founder(s) Michael Dell
Headquarters 1 Dell Way
Round Rock, Texas, U.S.[1]
Area served Worldwide
Key people Michael S. Dell
(Chairman & CEO)
Products Desktops
Servers
Notebooks
Netbooks
Peripherals
Printers
Televisions
Scanners
Storage
Smart Phones
Revenue decrease $52.902 billion (2010)[2]
Operating income decrease $2.172 billion (2010)[2]
Net income decrease $1.433 billion (2010)[2]
Total assets increase $33.652 billion (2010)[2]
Total equity increase $5.641 billion (2010)[2]
Employees 96,000 (2010)[2]
Website Dell.com

Dell Inc. (NASDAQ: Dell, HKEX: 4331) is a multinational information technology corporation based in Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide.[2] Dell is listed at #38 on the Fortune 500 (2010). Fortune also lists Dell as the #5 most admired company in its industry.

Dell has grown by both organic and inorganic means since its inception—notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce.

On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.[3]

Contents

History

Founder Michael Dell with his PCs Limited (the precursor to Dell Inc.) prototype, which is now housed at the Smithsonian

Dell traces its origins to 1984, when Michael Dell created PCs Limited while a student at the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PCs Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs.[4] Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family.

In 1985, the company produced the first computer of its own design — the "Turbo PC", sold for US$795.[5] PCs Limited advertised its systems in national computer magazines for sale directly to consumers and custom assembled each ordered unit according to a selection of options. The company grossed more than $73 million in its first year of trading.

The company changed its name to "Dell Computer Corporation" in 1988 and began expanding globally—first in Ireland. In June 1988, Dell's market capitalization grew by $30 million to $80 million from its June 22 initial public offering of 3.5 million shares at $8.50 a share.[6] In 1992, Fortune magazine included Dell Computer Corporation in its list of the world's 500 largest companies, making Michael Dell the youngest CEO of a Fortune 500 company ever.

In 1996, Dell began selling computers via its web site, and in 2002, Dell expanded its product line to include televisions, handhelds, digital audio players, and printers. Dell's first acquisition occurred in 1999 with the purchase of ConvergeNet Technologies. In 2003, the company was rebranded as simply "Dell Inc." to recognize the company's expansion beyond computers. From 2004 to 2007, Michael Dell stepped aside as CEO, while long-time Dell employee Kevin Rollins took the helm. During that time, Dell acquired Alienware, which introduced several new items to Dell products, including AMD microprocessors. To prevent cross-market products, Dell continues to run Alienware as a separate entity but still a wholly-owned subsidiary.[7]

Lackluster performance, however, in its lower-end computer business prompted Michael Dell to take on the role of CEO again. The founder announced a change campaign called "Dell 2.0," reducing headcount and diversifying the company's product offerings. The company acquired EqualLogic on January 28, 2008 to gain a foothold in the iSCSI storage market. Because Dell already had an efficient manufacturing process, integrating EqualLogic's products into the company drove manufacturing prices down.[8]

In 2009, Dell acquired Perot Systems, a technology services and outsourcing company founded by H. Ross Perot.

On September 21, 2009, Dell announced its intent to acquire Perot Systems (based in Plano, Texas) in a reported $3.9 billion deal.[9] Perot Systems brought applications development, systems integration, and strategic consulting services through its operations in the U.S. and 10 other countries. In addition, it provided a variety of business process outsourcing services, including claims processing and call center operations.[10]

On August 16, 2010, Dell announced to acquire the data storage company 3PAR.[11]

Dell Facilities

Dell is headquartered in Round Rock, Texas

Dell's headquarters are located in Round Rock, Texas.[12] As of 2010 the company employs about 16,000 people in the facility,[13] which has 2,100,000 square feet (200,000 m2) of space.[14] As of 1999 almost half of the general fund of the City of Round Rock originates from sales taxes generated from the Dell headquarters.[15]

The company previously had its headquarters in the Arboretum complex in northern Austin, Texas.[16][17] In 1989 Dell occupied 127,000 square feet (11,800 m2) in the Arboretum complex.[18] In 1990 Dell had 1,200 employees in its headquarters.[16] In 1993 Dell submitted a document to Round Rock officials, titled "Dell Computer Corporate Headquarters, Round Rock, Texas, May 1993 Schematic Design." Despite the filing, during that year the company said that it was not going to move its headquarters.[19] In 1994 Dell announced that it was moving most of its employees out of the Arboretum, but that it was going to continue to occupy the top floor of the Arboretum and that the company's official headquarters address would continue to be the Arboretum. The top floor continued to hold Dell's board room, demonstration center, and visitor meeting room. Less than one month prior to August 29, 1994, Dell moved 1,100 customer support and telephone sales employees to Round Rock.[20] Dell's lease in the Arboretum had been scheduled to expire in 1994.[21]

The company sponsors Dell Diamond, the home stadium of the Round Rock Express, the AAA minor league baseball affiliate of the Houston Astros major league baseball team.

By 1996 Dell was moving its headquarters to Round Rock.[22] As of January 1996 3,500 people still worked at the then-current Dell headquarters. One building of the Round Rock headquarters, Round Rock 3, had space for 6,400 employees and was scheduled to be completed in November 1996.[23] In 1998 Dell announced that it was going to add two buildings to its Round Rock complex, adding 1,600,000 square feet (150,000 m2) of office space to the complex.[24]

In 2000 Dell announced that it would lease 80,000 square feet (7,400 m2) of space in the Las Cimas office complex in unincorporated Travis County, Texas, between Austin and West Lake Hills, to house the company's executive offices and corporate headquarters. 100 senior executives were scheduled to work in the building by the end of 2000.[25] In January 2001 the company leased the space in Las Cimas 2, located along Loop 360. Las Cimas 2 housed Dell's executives, the investment operations, and some corporate functions. Dell also had an option for 138,000 square feet (12,800 m2) of space in Las Cimas 3.[26] After a slowdown in business required reducing employees and production capacity, Dell decided to sublease its offices in two buildings in the Las Cimas office complex.[27] In 2002 Dell announced that it planned to sublease its space to another tenant; the company planned to move its headquarters back to Round Rock once a tenant was secured.[26] By 2003 Dell moved its headquarters back to Round Rock. It leased all of Las Cimas I and II, with a total of 312,000 square feet (29,000 m2), for about a seven year period after 2003. By that year roughly 100,000 square feet (9,300 m2) of that space was absorbed by new subtenants.[28]

In 2008 Dell switched the power sources of the Round Rock headquarters to more environmentally friendly ones, with 60% of the total power coming from TXU Energy wind farms and 40% coming from the Austin Community Landfill gas-to-energy plant operated by Waste Management, Inc.[14]

Dell facilities in the United States are located in Austin, Texas; Nashville, Tennessee; Winston-Salem, North Carolina; and Miami, Florida. Facilities located abroad include Penang, Malaysia; Xiamen, China; Bangalore, India; Hyderabad, India; Chandigarh, India; Delhi, India; Bracknell, UK; Manila, Philippines[29] Chennai, India;[30] Hortolandia, Brazil; Łódź, Poland[31] and Limerick, Ireland.[32]

Products

Scope and brands

The corporation markets specific brand names to different market segments.

Its Business/Corporate class represent brands where the company advertises emphasizes long life-cycles, reliability, and serviceability. Such brands include:

Dell's Home Office/Consumer class emphasizes value, performance, and expandability. These brands include:

Dell's Peripherals class includes USB keydrives, LCD televisions, and printers; Dell monitors includes LCD TVs, plasma TVs and projectors for HDTV and monitors. Dell UltraSharp is further a high-end brand of monitors.

Dell service and support brands include Dell On Call (extended domestic support services), Dell Support Center (extended support services abroad), Dell Business Support (a commercial service-contract that provides an industry-certified technician with a lower call-volume than in normal queues), Dell Everdream Desktop Management ("Software as a Service" remote-desktop management),[34] and Your Tech Team (a support-queue available to home users who purchased their systems either through Dell's website or through Dell phone-centers).

Discontinued products and brands include Axim (PDA; discontinued April 9, 2007),[35] Dimension (home and small office desktop computers; discontinued July 2007), Dell Digital Jukebox (MP3 player; discontinued August 2006), Dell PowerApp (application-based servers), and Dell Omniplex (desktop and tower computers previously supported to run server and desktop operating systems).

Manufacturing

From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing — delivering individual PCs configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis.[36]

To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time (JIT) manufacturing approach, which minimizes inventory costs. Low inventory is another signature of the Dell business model — a critical consideration in an industry where components depreciate very rapidly.[37]

Dell's manufacturing process covers assembly, software installation, functional testing (including "burn-in"), and quality control. Throughout most of the company's history, Dell manufactured desktop machines in-house and contracted out manufacturing of base notebooks for configuration in-house.[38] However, the company's approach has changed. The 2006 Annual Report states "we are continuing to expand our use of original design manufacturing partnerships and manufacturing outsourcing relationships." The Wall Street Journal reported in September, 2008 that "Dell has approached contract computer manufacturers with offers to sell" their plants.[39]

Assembly of desktop computers for the North American market formerly took place at Dell plants in Austin, Texas (original location) and Lebanon, Tennessee (opened in 1999). The plant in Winston-Salem, North Carolina (opened in 2005) is scheduled to cease operations in January 2011, while the Miami, Florida facility of its Alienware subsidiary remains in operation. Dell servers come from Austin, Texas.

Dell's desktop plant in Austin, Texas was shut down in 2008. It closed its desktop manufacturing in Lebanon in early 2009. The last major U.S. plant in North Carolina is scheduled to close in January 2011.[40] It is expected that most of the work carried out in North Carolina will be transferred to contract manufacturers in Asia and Mexico, though Dell said some of the work will move to its own factories overseas.[41]

Dell assembles computers for the EMEA market at Limerick in the Republic of Ireland, and employs about 4,500 people in that country. Dell began manufacturing in Limerick in 1991 and went on to become Ireland's largest exporter of goods and its second-largest company and foreign investor. On January 8, 2009, Dell announced that it would move all Dell manufacturing in Limerick to Dell's new plant in the Polish city of Łódź by January 2010.[42] European Union officials said they would investigate a €52.7million aid package the Polish government used to attract Dell away from Ireland.[43] European Manufacturing Facility 1 (EMF1, opened in 1990) and EMF3 form part of the Raheen Industrial Estate near Limerick. EMF2 (previously a Wang facility, later occupied by Flextronics, situated in Castletroy) closed in 2002, and Dell Inc. has consolidated production into EMF3 (EMF1 now contains only offices).[44] Dell's Alienware subsidiary also manufactures PCs in an Athlone, Ireland plant. Construction of EMF4 in Łódź, Poland has started: Dell started production there in autumn 2007.[45]

Dell opened plants in Penang, Malaysia in 1995, and in Xiamen, China in 1999. These facilities serve the Asian market and assemble 95% of Dell notebooks. Dell Inc. has invested an estimated $60 million in a new manufacturing unit in Chennai, India, to support the sales of its products in the Indian subcontinent. Indian-made products will bear the "Made in India" mark. In 2007 the Chennai facility had the target of producing 400,000 desktop PCs, and plans envisaged it starting to produce notebook PCs and other products in the second half of 2007.

Dell moved desktop and PowerEdge server manufacturing for the South American market from the Eldorado do Sul plant opened in 1999, to a new plant in Hortolandia, Brazil in 2007.[46]

Green initiatives

Dell became the first company in the information technology industry to establish a product-recycling goal (in 2004) and completed the implementation of its global consumer recycling-program in 2006.[47] On February 6, 2007, the National Recycling Coalition awarded Dell its "Recycling Works" award for efforts to promote producer responsibility.[48] On July 19, 2007, Dell announced that it had exceeded targets in working to achieve a multi-year goal of recovering 275 million pounds of computer equipment by 2009.[49] The company reported the recovery of 78 million pounds (nearly 40,000 tons) of IT equipment from customers in 2006, a 93-percent increase over 2005; and 12.4% of the equipment Dell sold seven years earlier.[50]

On June 5, 2007 Dell set a goal of becoming the greenest technology company on Earth for the long term. The company launched a zero-carbon initiative that includes:

  1. reducing Dell's carbon intensity by 15 percent by 2012
  2. requiring primary suppliers to report carbon emissions data during quarterly business reviews
  3. partnering with customers to build the "greenest PC on the planet"
  4. expanding the company's carbon-offsetting program, "Plant a Tree for Me".

The company introduced the term "The Re-Generation" during a round table in London commemorating 2007 World Environment Day. "The Re-Generation" refers to people of all ages throughout the world who want to "make a difference" in improving the world's environment. Dell also talked about plans to take the lead in setting an environmental standard for the "technology industry" and maintaining that leadership in the future.

Dell reports its environmental performance in an annual Corporate Social Responsibility (CSR) Report that follows the Global Reporting Initiative (GRI) protocol. Dell's 2008 CSR report ranked as "Application Level B" as "checked by GRI".[51]

The company aims to reduce its external environmental impact through energy-efficient evolution of products, and also reduce its direct operational impact through energy-efficiency programmes. Internal energy-efficiency programmes reportedly save the company more than $3 million annually in energy-cost savings.[52] The largest component of the company's internal energy-efficiency savings comes through PC power management: the company expects to save $1.8 million in energy costs through using specialised energy-management software on a network of 50,000 PCs[53][54].

Technical support

Dell routes technical support queries according to component-type and to the level of support purchased. Dell Inc. brands its service agreements at five levels for their business customers: (1) Basic support provides business-hours telephone support and next business-day on-site support/ Return-to-Base or Collect and Return Services (based on contracts purchased at point of sale); (2) Silver support provides 24×7 telephone support and 4-hour on-site support after telephone-based troubleshooting; (3) Gold support provides additional benefits over and above Silver support; (4) Platinum Plus support provides additional benefits to Gold Support; and (5) two-hour on-site support, offered in select cities.[55]

Dell's Consumer division offers 24x7 phone based and online troubleshooting rather than only during business hours in certain markets such as the United States and Canada. On February 4, 2008 Dell launched a revamped services-and-support scheme for businesses named "ProSupport", offering customers more options to tailor services to fit their needs. Rather than take a one-size-fits-all approach, Dell has put together packages of options for each category of its customers: small and medium-sized businesses, large businesses, government, education, and health-care- and life-sciences. Dell now also offers separate support options for IT staff and for non-IT professionals. For the latter, the company offers "how-to" support for software applications, such as Microsoft Office. Dell also offers collaborative support with many third-party software vendors. For Dell-Certified IT departments, Dell offers "fast-track dispatch" of parts and labor and access to a crisis-center to handle major outages, virus-attacks, or problems caused by natural disasters.

Dell has several unique aspects of its support program. For example, computers use "Service Tags" unique alpha-numeric identifiers and '11 digit Express Service codes' (punched into the IVR prompts) to get customers to the appropriate support queue. Agents also utilize DellConnect, (a Citrix/GoToAssist based remote-access tool that gives technicians within Dell Support the ability to access customer computers from a remote location for troubleshooting purposes).

Commercial aspects

Organization

A board of directors of nine people runs the company. Michael Dell, the founder of the company, serves on the board. Other board members include Don Carty, William Gray, Judy Lewent, Klaus Luft, Alex Mandl, Michael A. Miles, and Sam Nunn. Shareholders elect the nine board members at meetings, and those board members who do not get a majority of votes must submit a resignation to the board, which will subsequently choose whether or not to accept the resignation. The board of directors usually sets up five committees having oversight over specific matters. These committees include the Audit Committee, which handles accounting issues, including auditing and reporting; the Compensation Committee, which approves compensation for the CEO and other employees of the company; the Finance Committee, which handles financial matters such as proposed mergers and acquisitions; the Governance and Nominating Committee, which handles various corporate matters (including nomination of the board); and the Antitrust Compliance Committee, which attempts to prevent company practices from violating antitrust laws.

The corporate structure and management of Dell extends beyond the board of directors. The Dell Global Executive Management Committee sets strategic directions. Dell has regional senior vice-presidents for countries other than the United States, including David Marmonti for EMEA and Stephen J. Felice for Asia/Japan. As of 2007, other officers included Martin Garvin (senior vice president for worldwide procurement) and Susan E. Sheskey (vice president and Chief Information Officer).

Marketing

Dell advertisements have appeared in several types of media including television, the Internet, magazines, catalogs and newspapers. Some of Dell Inc's marketing strategies include lowering prices at all times of the year, offering free bonus products (such as Dell printers), and offering free shipping in order to encourage more sales and to stave off competitors. In 2006, Dell cut its prices in an effort to maintain its 19.2% market share. However, this also cut profit-margins by more than half, from 8.7 to 4.3 percent. To maintain its low prices, Dell continues to accept most purchases of its products via the Internet and through the telephone network, and to move its customer-care division to India and El Salvador.[56]

A popular United States television and print ad campaign in the early 2000s featured the actor Ben Curtis playing the part of "Steven", a lightly mischievous blond-haired youth who came to the assistance of bereft computer purchasers. Each television advertisement usually ended with Steven's catch-phrase: "Dude, you're gettin' a Dell!"

A subsequent advertising campaign featured interns at Dell headquarters (with Curtis' character appearing in a small cameo at the end of one of the first commercials in this particular campaign).

A Dell advertising campaign for the XPS line of gaming computers featured in print in the September 2006 issue of Wired. It used as a tagline the common term in Internet and gamer slang: "FTW", meaning "For The Win". However, Dell Inc. soon dropped the campaign.

In the first-person shooter game F.E.A.R. Extraction Point, several computers visible on desks within the game have recognizable Dell XPS model characteristics, sometimes even including the Dell logo on the monitors.

In 2007, Dell switched advertising agencies in the US from BBDO to Mother. In July 2007, Dell released new advertising created by Mother to support the Inspiron and XPS lines. The ads featured music from the Flaming Lips and Devo who re-formed especially to record the song in the ad "Work it Out". Also in 2007, Dell began using the slogan "Yours is here" to say that it customizes computers to fit customers' requirements.[57]

Criticisms of Dell's marketing of laptop security

In 2008, Dell received press coverage over its claim of having the world's most secure laptops, specifically, its Latitude D630 and Latitude D830.[58] At Lenovo's request, the (U.S.) National Advertising Division (NAD) evaluated the claim, and reported that Dell did not have enough evidence to support it.[59]

Dell kiosks

Starting in 2002, Dell opened kiosk locations in shopping malls across the United States in order to give personal service to customers who preferred this method of shopping to using the Internet or the telephone-system. Despite the added expense, prices at the kiosks match or beat prices available through other retail channels. Starting in 2005, Dell expanded kiosk locations to include shopping malls across Australia, Canada, Singapore and Hong Kong.

On January 30, 2008, Dell shut down all 140 kiosks in the U.S. due to expansion into retail stores such as Wal-Mart, Best Buy, and Staples all over the world.

Dell stores in the United States of America

In 2006, Dell Inc. opened one full store, 3,000-square-foot (280 m2) in area, at NorthPark Center in Dallas, Texas. It operates the retail outlet seven days a week to display about 36 models, including PCs and televisions. As at the kiosks, customers can only see demonstration-computers and place orders through agents. Dell then delivers purchased items just as if the customer had placed the order by phone or over the Internet.

Dell Inc. planned to use the Dallas store to house about three times as many products as it displayed in more than 160 kiosks in malls and airports. In addition to showcasing products, the stores also support on-site warranties and non-warranty service ("Dell on Call"). Services offered include repairing computer video-cards and removing spyware from hard drives.

On February 14, 2008, Dell closed the Service Center in its Dallas NorthPark store and laid off all the technical staff there.

Dell Partner Program

In late 2007, Dell Inc. announced that it planned to expand its program to value-added resellers (VARs), giving it the official name of "Dell Partner Direct" and a new Website [2]. Dell Inc. realized that this program, once a small factor in Dell Inc. sales, had become a growing sector of its business and it desired to leverage this growing outlet for its products. It promised VARs who joined this program increased discounts on product and the ability to use the Dell name and logo in their marketing efforts. ConnectU became an early member of the program.

The overall success of this program — as a new development for Dell Inc. — remains unclear.

Retail in the United States

In the early 1990s, Dell also sold its products through Best Buy, Costco and Sam's Club stores in the United States. Dell stopped this practice in 1994, citing low profit-margins on the business. In 2003, Dell briefly sold products in Sears stores in the U.S. In 2007, Dell started shipping its products to major retailers in the U.S. once again, starting with Sam's Club and Wal-Mart. Staples, the largest office-supply retailer in the U.S., and Best Buy, the largest electronics retailer in the U.S., became Dell retail partners later that same year.

Retail around the World

As of the end of February 2008, Dell products shipped to one of the largest office-supply retailers in Canada, Staples Business Depot. In April 2008, Future Shop and Best Buy began carrying a subset of Dell products, such as certain desktops, laptops, printers, and monitors.

Since some shoppers in certain markets show reluctance to purchase technological products through the phone or the Internet, Dell has looked into opening retail operations in some countries in Central Europe and Russia. In April 2007, Dell opened a retail store in Budapest. In October of the same year, Dell opened a retail store in Moscow.

In the UK, HMV's flagship Trocadero store has sold Dell XPS PCs since December 2007. From January 2008 the UK stores of DSGi have sold Dell products (in particular, through Currys and PC World stores). As of 2008, the large supermarket-chain Tesco has sold Dell laptops and desktops in outlets throughout the UK.

In May 2008, Dell reached an agreement with office supply chain, Officeworks (part of Coles Group), to stock a few modified models in the Inspiron desktop and notebook range. These models have slightly different model numbers, but almost replicate the ones available from the Dell Store. Dell continued its retail push in the Australian market with its partnership with Harris Technology (another part of Coles Group) in November of the same year. In addition, Dell expanded its retail distributions in Australia through an agreement with discount electrical retailer, The Good Guys, known for "Slashing Prices". Dell agreed to distribute a variety of makes of both desktops and notebooks, including Studio and XPS systems in late 2008. Dell and Dick Smith Electronics (owned by Woolworths Limited) reached an agreement to expand within Dick Smith's 400 stores throughout Australia and New Zealand in May 2009 (1 year since Officeworks — owned by Coles Group — reached a deal). The retailer has agreed to distribute a variety of Inspiron and Studio notebooks, with minimal Studio desktops from the Dell range. As of 2009, Dell continues to run and operate its various kiosks in 18 shopping centres throughout Australia. On 31 March 2010 Dell announced to Australian Kiosk employees that they were shutting down the Australian/New Zealand Dell kiosk program.

Education K12 Market

There have been many different definitions to the "Intelligent Classroom" over the last 10 years. Some of the definitions are as vague as putting an interactive white board and a projector in the room. Others are more detailed and include specific content.

Dell Corporation has been a leader for years and has had several different versions of the “Intelligent Classroom”. The most current definition is: “through its ability to stimulate learning on multiple levels, technology can enhance the classroom experience for both teachers and student”.

Other corporations and products have included other definitions. One of these includes: “The most important part of the Intelligent Classroom is the ...Students, Teacher, and the Educational Interaction”. This view stresses the importance of the educational interaction rather than just products.

Typical technology used in an Intelligent Classroom would include a projector, computer, sound, student response systems, video distribution, and IP TV. All of these products would have one goal, and that is to improve the learning experience for the students. If implemented correctly, Media Rich Curriculum (MRC) is now the center piece of the classroom rather than the technology.

Video Distribution on a local area network requires these key features: A properly designed network and video distribution equipment. A general guideline can be followed if questions are brought up regarding the ability of a specific network to support video distribution: "If the network can support VoiP (Voice Over IP) the network should support video distribution." While this is a general statement, it does help educators set a guideline for implementing MRC on a network going to a classroom.

Competition

Dell's major competitors include Apple, Hewlett-Packard (HP), Acer, Toshiba, Gateway, Sony, Asus, Lenovo, IBM, Samsung, and Sun Microsystems. Dell and its subsidiary, Alienware, compete in the enthusiast market against AVADirect, Falcon Northwest, VoodooPC (a subsidiary of HP), and other manufacturers. In the second quarter of 2006 Dell had between 18% and 19% share of the worldwide personal computer market, compared to HP with roughly 15%.

In late 2006, Dell lost its lead in the PC-business to Hewlett-Packard. Both Gartner and IDC estimated that in the third quarter of 2006, HP shipped more units worldwide than did Dell. Dell's 3.6% growth paled in comparison to HP's 15% growth during the same period. The problem got worse in the fourth quarter, when Gartner estimated that Dell PC shipments declined 8.9% (versus HP's 23.9% growth). As a result, at the end of 2006 Dell's overall PC market-share stood at 13.9% (versus HP's 17.4%).

IDC reported that Dell lost more server market share than any of the top four competitors in that arena. IDC's Q4 2006 estimates show Dell's share of the server market at 8.1%, down from 9.5% in the previous year. This represents a 8.8% loss year-over-year, primarily to competitors EMC and IBM.[60]

Partnership with EMC

The Dell/EMC brand applies solely to products that result from Dell's partnership with EMC Corporation. In some cases Dell and EMC jointly design such products; other cases involve EMC products for which Dell will provide support — generally midrange storage systems, such as fibre channel and iSCSI storage area networks. The relationship also promotes and sells OEM versions of backup, recovery, replication and archiving software.[61]

On December 9, 2008, Dell and EMC announced the multi-year extension, through 2013, of their strategic partnership that began in 2001. In addition, Dell plans to expand its product line-up by adding the EMC Celerra NX4 storage system to the portfolio of Dell/EMC family of networked storage systems, as well as partnering on a new line of de-duplication products as part of its TierDisk family of data-storage devices.

Environmental record

Dell committed to reduce greenhouse gas emissions from its global activities by 40% by 2015, with 2007 as the baseline year.[62] It is listed in Greenpeace’s Guide to Greener Electronics that scores leading electronics manufacturers according to their policies on toxic chemicals, recycling and climate change. In May 2010, Dell ranked 10th out of 18 listed electronics makers. [63]

Dell was the first company to publicly state a timeline for the elimination of toxic polyvinyl chloride (PVC) and brominated flame retardants (BFRs), which it planned to phase out by the end of 2009. It revised this commitment and now aims to remove these toxics by 2011 but only in its computing products. In March 2010, Greenpeace activists protested at Dell offices in Bangalore, Amsterdam and Copenhagen calling for Dell’s founder and CEO Michael Dell to ‘drop the toxics’ and claiming that Dell’s aspiration to be ‘the greenest technology company on the planet’[64] was ‘hypocritical’. [65] Dell has launched its first products completely free of PVC and BFRs with the G-Series monitors (G2210 and G2410) in 2009. [66]

Criticism

In the 1990s, Dell switched from using primarily ATX motherboards and PSU to using boards and power-supplies with mechanically identical but differently wired connectors. This meant customers wishing to upgrade their hardware would have to replace parts with scarce Dell-compatible parts instead of commonly available parts. However, company practice in this respect changed in 2003.[67][68]

In 2005, complaints about Dell more than doubled to 1,533, after earnings grew 52% that year.[69]

In 2006, Dell acknowledged that it had problems with customer service. Issues included call-transfers[70] of more than 45% of calls and long wait-times. Dell's blog detailed the response: "We're spending more than a $100 million — and a lot of blood, sweat and tears of talented people — to fix this."[71] Later in the year, the company increased its spending on customer service to $150 million.[72]

On August 17, 2007, Dell Inc. announced that after an internal investigation into its accounting practices it would restate and reduce earnings from 2003 through to the first quarter of 2007 by a total amount of between $50 million and $150 million, or 2 cents to 7 cents per share.[73] The investigation, begun in November 2006, resulted from concerns raised by the U.S. Securities and Exchange Commission over some documents and information that Dell Inc. had submitted.[74] It was alleged that Dell had not disclosed large exclusivity payments received from Intel for agreeing not to buy processors from a rival manufacturer. In 2010 Dell finally paid $100 million to settle the SEC's charges of fraud. Michael Dell and other executives also paid penalties and suffered other sanctions, without admitting or denying the charges.[75]

In May 2008, the New York Supreme Court ruled that Dell and Dell Financial Services "engaged in fraud, false advertising, deceptive business practices, and abusive debt collection practices". The relevant lawsuit aimed primarily to highlight and seek restitution for a lack of technical support given to customers by Dell. The court plans to hold further proceedings to determine how much money Dell has to pay out to customers and how much profit Dell made unlawfully, in New York.

In July 2009, Dell appologized after the firm offered its Latitude E4300 notebook at NT$18,558 (US$580), 70% lower than usual price of NT$60,900 (US$1900) in its Taiwan website. The firm withdrawed orders and offered a voucher of up to NT$20,000 (US$625) a customer in compensation. The consumer rights authorities in Taiwan fined Dell NT$1 million (US$31250) for customer rights infringements. Many comsumers sued the firm for the unfair compensation. A court in southern Taiwan ordered the firm to deliver 18 laptops and 76 flat-panel monitors to 31 consumers for NT$490,000 (US$15,120), less than a third of the normal price.[76]. The court said the event could hardly be regarded as mistakes, as the prestigious firm said the company mispriced its products twice in Taiwanese website within 3 weeks.[77]

See also

References

  1. ↑ Dell Company Profile, Retrieved 2010-07-28.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 "Form 10-K". Dell Inc., United States Securities and Exchange Commission. 2008-03-31. http://finance.yahoo.com/q/is?s=Dell&annual. Retrieved 2008-07-01. "For the fiscal year ended: Jan 1, 2009" 
  3. ↑ CNN. http://money.cnn.com/magazines/fortune/fortune500/2010/states/TX.html. 
  4. ↑ [1]
  5. ↑ Koehn, Nancy Fowler (2001). Brand New: How Entrepreneurs Earned Consumers' Trust from Wedgwood to Dell. Harvard Business Press. pp. 287. ISBN 9781578512218. http://books.google.com/?id=7j8VefeqUk4C&printsec=frontcover. Retrieved 2008-10-14. 
  6. ↑ Frequently Asked Questions
  7. ↑ Lee, Louise (2006-03-23). "Dell Goes High-end and Hip". BusinessWeek. McGraw-Hill. http://www.businessweek.com/technology/content/mar2006/tc20060323_034268.htm. Retrieved 2008-10-29. 
  8. ↑ Gonsalves, Antone (2007-11-05). "Dell's EqualLogic Buy Could Drive Down iSCSI Storage Prices". InformationWeek. United Business Media. http://www.informationweek.com/news/hardware/desktop/showArticle.jhtml?articleID=202802668. Retrieved 2008-10-29. 
  9. ↑ Dell to buy Perot Systems for $3.9 billion
  10. ↑ "Perot Systems". Hoover's. 2009. http://www.hoovers.com/company/Perot_Systems_Corporation/crycki-1.html. Retrieved 2010-01-04. 
  11. ↑ STOCKS NEWS US-3PAR shares soar as Dell acquires company
  12. ↑ "Dell Worldwide." Dell. Retrieved on May 4, 2010.
  13. ↑ Hall, Christine. "Cyberstates: Texas second-largest tech employment." Austin Business Journal. Wednesday April 28, 2010. Retrieved on May 4, 2010.
  14. ↑ 14.0 14.1 Staff. "Dell headquarters now carbon-free." New Mexico Business Weekly. Wednesday April 2, 2008. Retrieved on May 4, 2010.
  15. ↑ Jacobs, Janet. "Cash flow from Dell lets Round Rock boost budget." Austin American-Statesman. September 9, 1999. A1. Retrieved on May 4, 2010. "Almost half the city's general fund comes from sales tax at Dell's headquarters,"
  16. ↑ 16.0 16.1 Pope, Kyle. "Dell chief disbands project." Austin American-Statesman. February 25, 1990. A1. Retrieved on May 4, 2010. "Dell is headquartered at the Arboretum complex in North Austin and employs about 1200 people."
  17. ↑ PC Magazine. Volume 12, 1993. 175. "Dell Computer Corp., 9505 Arboretum Blvd., Austin, TX 78759."
  18. ↑ Pope, Kyle. "Dell plans expansion and move High-tech firm inks Braker Center deal." Austin American-Statesman. January 24, 1989. B7. Retrieved on May 4, 2010. "Dell occupies 127000 square feet of office space at the Arboretum."
  19. ↑ Ladendorf, Kirk and R. Michelle Breyer. "Despite document, Dell says no headquarters move planned." Austin American-Statesman. May 22, 1993. E1. Retrieved on May 4, 2010.
  20. ↑ "Dell to keep top floor at Arboretum offices." Austin American-Statesman. August 29, 1994. C1. Retrieved on May 4, 2010.
  21. ↑ Ladendorf, Kirk and Mike Todd. "Dell seeks space for expansion Firm makes proposal for tax abatements." Austin American-Statesman. November 5, 1992. B4. Retrieved on May 4, 2010. "The lease on the company's headquarters building at the Arboretum expires in 1994."
  22. ↑ Ladendorf, Kirk. "Dell expanding in Central Texas." Austin American-Statesman. October 1, 1996. A1. Retrieved on May 4, 2010.
  23. ↑ Mahoney, Jerry. "Dell's success is Round Rock's gain." Austin American-Statesman. January 9, 1996. A1. Retrieved on May 4, 2010. "Dell will have room for 6400 employees when it finishes Round Rock 3 in November . The company, which still employs about 3500 people at its headquarters."
  24. ↑ Mahoney, Jerry. "Dell to expand its office complex." Austin American-Statesman. May 30, 1998. D1. Retrieved on May 4, 2010.
  25. ↑ Pletz, John. "Dell moving executives closer to Austin." (Alternate link) Austin American-Statesman. May 9, 2000. A1. Retrieved on May 4, 2010.
  26. ↑ 26.0 26.1 "Dell seeks to sublease Las Cimas offices." Austin Business Journal. Friday March 8, 2002. Retrieved on May 4, 2010.
  27. ↑ Pletz, John. "Article: Dell Leaders to Return to Round Rock, Texas, Campus." Austin American-Statesman. March 8, 2002. Retrieved on May 4, 2010.
  28. ↑ Hudgins, Matt. "Dell space taken." Austin Business Journal. Friday May 9, 2003. Retrieved on May 4, 2010.
  29. ↑ Dell Locations Corporate Web Site
  30. ↑ EET India article on Dell
  31. ↑ "#25 Michael Dell". The World's Billionaires 2009. Forbes.com. http://www.forbes.com/lists/2009/10/billionaires-2009-richest-people_Michael-Dell_WJOB.html. Retrieved 2009-10-21. "[Michael Dell] caused ire in Ireland after relocating factory to cheaper Poland." 
  32. ↑ http://www.statesman.com/search/content//business/stories/technology/2009/10/08/1008Dellmap.html
  33. ↑ Dell Precision Open-Source Workstations with Linux
  34. ↑ Dell Everdream Desktop Management
  35. ↑ Direct2Dell.com
  36. ↑ Dedrick and Kraemer: "Market Making in the PC Industry", Personal Computing Industry Center, 2007.
  37. ↑ Kraemer and Dedrick: "Dell Computer: Organization of a Global Production Network", Center for Research on Information Technology and Organizations, 2002.
  38. ↑ Company Annual Reports, various years.
  39. ↑ Scheck, J: "Dell Plans to Sell Factories in Effort to Cut Costs", Wall Street Journal, September 5, 2008.
  40. ↑ http://www.wral.com/news/state/story/7518395/
  41. ↑ Kirk Ladendorf (October 8, 2009). "Dell closing its last large U.S. plant". Austin American-Statesman. http://www.statesman.com/business/content/business/stories/technology/2009/10/08/1008Dell.html. Retrieved Nov 19, 2009. 
  42. ↑ 1,900 jobs lost at Dell in Limerick. RTÉ New Report — January 8, 2009
  43. ↑ EU to investigate Dell aid package. RTÉ New Report — January 8, 2009
  44. ↑ NY Transfer — Since 1985, All the News That Doesn't Fit
  45. ↑ Dell Announces Manufacturing Facility In Poland To Serve Growing Central And Eastern European Markets
  46. ↑ Dell Starts Manufacturing Servers in Brazil
  47. ↑ Dell First US Computer Company to Commit to a Global Recycling Goal
  48. ↑ - National Recycling Coalition
  49. ↑ http://biz.yahoo.com/ap/070719/tx_Dell_recycling.html?.v=1
  50. ↑ http://www.Dell.com/content/topics/global.aspx/corp/pressoffice/en/2007/2007_07_19_rr_001?c=us&l=en&s=corp Dell Inc.
  51. ↑ Dell 2008 Corporate Social Responsibility Report, Section "GRI Performance Indicators Index" http://i.Dell.com/sites/content/corporate/environment/en/Documents/Dell%20Corporate%20Responsibility%20Report%202008.pdf
  52. ↑ http://www.biodiversityscience.org/xp/CELB/news-events/press_releases/080608.xml
  53. ↑ How Dell Does IT: Energy Efficiency, Dell Cuts energy costs by up to 40% with a new power management plan http://www.Dell.com/content/topics/global.aspx/casestudies/en/emea/eu/fy2008_q3_id688?c=us&l=en&s=gen
  54. ↑ Dell on Dell: Energy Efficiency Case Study http://www.1e.com/download/whitepapers/688_2007_DellonDellenergy_79991399.pdf
  55. ↑ Dell support levels
  56. ↑ Michael Dell Sees India Playing a Key Role in the Online World
  57. ↑ "Dell launches star-studded "Yours Is Here" ad campaign". Engadget. http://www.engadget.com/2007/11/21/dell-launches-star-studded-yours-is-here-ad-campaign/. Retrieved 14 July 2010. 
  58. ↑ Dell Scolded for Laptop Ads
  59. ↑ Dell's Claim as World's Most Secure Commercial Laptops?
  60. ↑ "World News, Business News, Breaking US & International News". Reuters. http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070312:MTFH05034_2007-03-12_21-17-33_N12385967&type=comktNews&rpc=44. 
  61. ↑ Dell/EMC products
  62. ↑ "Walking the Walk on Greenhouse Gas Reduction". Dell. http://content.dell.com/us/en/corp/d/corp-comm/cr-earth-emissions.aspx. Retrieved 2010-08-16. 
  63. ↑ "Guide to Greener Electronics". Greenpeace International. http://www.greenpeace.org/international/en/campaigns/toxics/electronics/Guide-to-Greener-Electronics/. Retrieved 2010-08-16. 
  64. ↑ "Dell Sets Goal Of Becoming Greenest Technology Company". Dell. http://www.dell.com/content/topics/global.aspx/corp/pressoffice/en/2007/2007_06_05_lon_000?c=us&l=en. Retrieved 2010-08-16. 
  65. ↑ "Dell targeted for breaking promise on toxic chemicals". Greenpeace International. http://www.greenpeace.org/international/en/news/features/dell-breaking-promise-290310/. Retrieved 2010-08-16. 
  66. ↑ "Materials Use: What’s Inside Our Products – And What’s Not". Dell. http://content.dell.com/us/en/corp/d/corp-comm/earth-greener-products-materials.aspx. Retrieved 2010-08-16. 
  67. ↑ InformIT: Dell proprietary (non-standard) ATX design > Dell proprietary (non-standard) ATX design
  68. ↑ Mueller, Scott. Upgrading and Repairing PCs, 13ed, Indianapolis: Que Publications, 2002, ISBN 0-7897-2542-8, and subsequent editions
  69. ↑ "It's Dell vs. the Dell Way". http://www.businessweek.com/technology/content/feb2006/tc20060223_710372.htm. 
  70. ↑ Dell Spiffs Up Its Service, Business Week
  71. ↑ No Magic Wands For Customer Service, The Official Dell blog
  72. ↑ Kirkpatrick, David (September 18, 2006). "Dell in the penalty box". CNN. http://money.cnn.com/magazines/fortune/fortune_archive/2006/09/18/8386121/index.htm. Retrieved May 1, 2010. 
  73. ↑ Lipton, Joshua (2007-08-17). "Dell's Investigation Comes To a Close". Forbes. http://www.forbes.com/markets/2007/08/17/Dell-computer-investigation-markets-equity-cx_jl_0817markets19.html. Retrieved 2007-08-19. 
  74. ↑ Darlin, Damon (2006-11-16). "Dell Accounting Inquiry Made Formal by S.E.C.". The New York Times. http://www.nytimes.com/2006/11/16/technology/16Dell.html?ex=1321333200&en=d4ea7f8f975e4474&ei=5088&partner=rssnyt&emc=rss. Retrieved 2007-08-19. 
  75. ↑ Reed, Kevin (2010-07-23). "Dell pays $100m penalty to settle accounting fraud charges". Accountancy Age. http://www.accountancyage.com/accountancyage/news/2266948/dell-pays-100m-penalty-settle. Retrieved 2010-07-23. 
  76. ↑ [http://www.taipeitimes.com/News/biz/archives/2010/06/07/2003474881 Dell loses Taiwan consumer lawsuit: report]
  77. ↑ [http://jirs.judicial.gov.tw/FJUD/PrintFJUD03_0.aspx?jrecno=98%2c%e8%a8%b4%2c1009%2c20100531%2c2&v_court=TND+%e8%87%ba%e7%81%a3%e8%87%ba%e5%8d%97%e5%9c%b0%e6%96%b9%e6%b3%95%e9%99%a2&v_sys=V&jyear=98&jcase=%e8%a8%b4&jno=1009&jdate=990531&jcheck=2 full-text verdict]

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