How the 2 Largest US Computer Stores Started
Dell Computer Corporation and Hewlett-Packard are the 2 largest US computer stores. They both started with small capital investments and limited infrastructure. Through innovations and hard work, these companies earned millions of dollars, and continue to thrive in today’s modern world.
Michael Dell, the founder of Dell Computer Corporation, is the longest-serving chief executive officer of Dell today. Dell started selling personal computers when he was a freshman at the University of Texas in Austin in the early 1980s. He bought wholesale parts and put them together as IBM computer clones. He also used the mail order market to reach his customers. Due to his success, he left school that same year and incorporated his business. This was how DELL Computer Corporation began.
Michael Dell believed in the direct selling strategy. He eliminated middle men who added to the cost of the machines. This direct selling model of Dell allows them to build their system, which includes selling via ordering privileges and giving customers powerful computer systems at competitive prices. In addition the company introduced the latest technology faster than other companies.
Through this strategy, Dell achieved millions of dollars from its sales margins after only 2 years. In 1987, Dell dominated the mail order market. Yet, it was clear to Dell that in order to continue growing, he had to expand beyond mail order. He knew that he needed a larger professional management staff in order to reach his goal. As early as 1986, the company engaged E. Lee Walker, a former investment banker, as its President.
