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Essay on Economics
The Dell Computer company was founded in 1984 by Michael Dell. Dell Inc. is a large United States-based computer hardware company, employing more than 63,700 people worldwide as of 2006. Dell develops, manufactures, supports and markets a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, peripherals and more. According to the Forbes 500 2005 list, Dell ranks as the 28th-largest company in the United States by revenue.
In 2005, Fortune magazine ranked Dell as No. 1 on its annual list of the most-admired companies in the United States, displacing Wal-Mart, which had held the top spot for the previous two years and fell to Products.
Dell sells all its products both to consumers and corporate customers, using a direct-sales model via the Internet and the telephone network. Dell also showcases its consumer-oriented products at kiosks in major shopping malls. Dell maintains a negative cash conversion cycle through use of this model. The Internet has significantly enhanced Dell's business model, making it easier for customers to contact Dell directly. Other computer manufacturers, including Gateway and Compaq, have adapted this same business model.
Dell advertisements have appeared in several types of media including television, the Internet, magazines, catalogs and in newspapers.
Dell constantly lowers product prices at all times of the year, offering free bonus products such as Dell printers and free shipping to encourage more sales.
Dell's major competitors include Hewlett-Packard/Compaq, Packard Bell, Sun Microsystems, Gateway/Emachines, Lenovo, Sony, and Toshiba. Enthusiast market competition takes place with Alienware, Falcon Northwest, WidowPC and other manufacturers. In 2004, Dell had a 17.9% share of the worldwide personal-computer market, compared to HP with 15.8%. By using their business model, Dell attempts to undercut competitors and offer consumers a more attractive choice of personal computers and other equipment.........
