Dell was only 19 years old when he started his own company. The direct selling model he founded changed the way people buy personal computers. Today, this method has become popular all over the world. His company, Dell Computer Company, is like a money-making machine. Among Fortune 500 companies in the United States, Dell is the only company whose annual growth rate of sales and income has exceeded 40% for three consecutive years. Since 1990, Dell's share price has risen 296 times! According to a survey report of Businessweek in early 2002, Dell Computer ranked first (Microsoft ranked eighth) among the top IT companies in the world 100.
Dell is now a member of the American Business Computer World/Smithsonian Award Committee, and has won many awards in computer, finance and business fields for his outstanding leadership.
Dell was selected as the best manager of Businessweek by 1996, 1997 and 1998.
Realize unlimited business opportunities for running computers.
When Dell first came into contact with computers, he bought a hard disk with the money saved from selling newspapers, and used it to set up a BBS to exchange information with other people interested in computers. When comparing the information about personal computers with others, he suddenly found that the price and profit margin of computers were very irregular. At that time, the price of an IBM personal computer in the store was generally $3,000, but its parts were probably $600 to $700, and it was not IBM's technology. He thinks this phenomenon is unreasonable. In addition, it is meaningless to say that people who open computer shops have no concept of computers. Most shopkeepers have sold stereos or cars before, thinking that computers are the next trend of "making big money", so they also come to sell computers. In Houston alone, hundreds of computer stores suddenly appeared. These dealers bought an IBM PC for $2,000 and then sold it for $3,000, making a profit of $65,438+$0,000. At the same time, they only provide customers with little technical services, and some even have no after-sales service. However, because everyone wants to buy computers, these stores still make a fortune.
Realizing this, Dell began to buy some parts exactly the same as those in IBM machines, upgraded his computer and sold them to people he knew. He said: "I know that if I sell more, I can compete with those computer stores, not only in price, but also in quality." At the same time, he realized that there were "unlimited business opportunities" in operating computers. So he decided to devote himself to the computer business.
"I have to give up my studies," he said to his parents. "I want to start my own company."
"What the hell do you want?" Father asked.
"compete with IBM." He shrugged his shoulders and answered easily.
"Competing with IBM?" Now his parents are really worried about their son. However, no matter what his parents said, Michael insisted on not changing his mind. He still said: this idea is good, why not try it. So they reached an agreement that he could start his own computer company during the summer vacation. If he fails, he must go back to school in the new semester in September.
After returning to Houston, Michael used all his savings to start "Dell Computer Company". It was1May 3, 984, and he just turned 19 years old.
Face difficulties and mistakes calmly.
When encountering difficulties, Dell always faces them, without denying the existence of problems or making excuses. With this firm attitude, Dell faced all the mistakes and frankly admitted: "We have encountered a problem and must correct it." However, it is not easy to do this. When bad news or disappointing things happen, people naturally shrink back and hope for a miracle, but miracles usually don't happen. Things happen very quickly, so we must seize the problem immediately and correct it immediately. Dell can immediately obtain all information from market performance and factory manufacturing process, including products, demand trends, quality data and so on. This meter will be announced not only in the factory, but also in the whole company. The salesperson calculates the progress in minutes. Every activity of the company is accompanied by a measurement form, even soft activities such as law, public relations and human resources are no exception. These indicators are not only data or statistics, but also customers' choices and even extremely embarrassing negative reactions.
Dell regards the opportunity to talk with dissatisfied customers as a good opportunity for self-improvement and learning, so as to be more competitive. One of Dell's slogans is: "Don't whitewash peace." This means, don't try to beautify the bad things. The truth will come out sooner or later, so it's better to face it directly. When faced with a poorly managed enterprise, Dell will ask itself, "What's the problem? This business should perform well, right? Do we have problems in execution, strategy or management? Will this business never go on? Should we reduce losses now? "
Boldly adopt lithium batteries
Taking risks is a common feature of many well-known entrepreneurs. The most profitable people in the world seem to be associated with some kind of opportunity. In fact, these people are not the only ones who are particularly sensitive to market opportunities. Many people see the same opportunities as them, but dare not take risks.
According to Dell, adventure means an action, and those who take action have more opportunities than those who just sit and chat.
1993 65438+ 10, not long after Dell set up a Dell branch in Japan, it met with Sony personnel. Multimedia technologies such as display screen, CD-ROM and CD-ROM developed by Sony are discussed. At the end of the meeting, a young Japanese ran up to Dell and said, "Mr. Dell, please wait a moment." I'm from the Energy Systems Department. I want to talk to you. "
Dale stayed and listened to what he had to say. He took out one form after another and showed it to Dell. It was full of functions about a new type of battery, which was called "lithium battery". Dell understands that he wants to sell lithium batteries for laptops to Dell. Anyone who has used a laptop will say that their biggest expectation is to have a battery with long power life. In 1993, most laptops will run out of batteries and electricity after two hours. According to the function test table of Sony engineers, the potential of lithium battery can last for more than 4 hours. Compared with traditional Ni-MH batteries, lithium batteries have higher density between power and weight. Using lithium battery can save half a catty of weight, but it can prolong the battery life by 50%, not to mention the storage wisdom of the battery pack, which can manage the power supply more effectively and further prolong the battery life.
Deciding to use lithium batteries is a difficult decision. At that time, lithium battery was a brand-new technology, so it was also risky. Because Dell's system can't support lithium batteries and nickel-metal hydride batteries at the same time, it is necessary to choose between the two batteries. Although Sony has always had a good answer to Dell's questions, no one dares to say that lithium batteries will definitely develop well. Of course, there is no doubt that lithium batteries will make Dell different. However, this technology was not produced by other companies at that time. According to Dell's demand, Sony will not have any inventory to sell to other manufacturers except for supplying to Dell. It will take competitors at least one year to acquire this technology. If all goes well, Dell's products will have great advantages in battery life, volume and weight.
Dell decided to take a chance. Under his active advocacy,1August 1994, LatitudeXP model with lithium battery came out. Immediately, the sales of Dell notebook computers increased greatly, accounting for only 5% of the system revenue in the first quarter of fiscal year 1995 and reaching 14% in the fourth quarter.