Word: delle
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...unusual in the technology world in that they are basically commodity products—with Intel and Microsoft controlling the technological innovation, the “box makers” like Compaq and Dell have little basis on which to differentiate their products. In a sagging economy, conditions are ripe for a devastating price war and a consolidation of the industry, which we have in fact seen in the last year. Two of the major players—Hewlett Packard and Compaq—are doing everything wrong in response to this situation, while two of the others?...
...Michael Dell, CEO of the eponymous PC maker, has prospered by being the cause of HP and Compaq’s woes. Dell builds and ships its PCs directly to customers, taking most orders through its web site and avoiding sales channels, large parts inventories (which decline in value by the hour) and anything that might drag it down. Dell’s “direct” approach enables it to make money virtually no matter what a PC costs; thus, Dell launched a major price war last year to gain market share and force its competitors into...
...same periods. China is the world's third largest PC exporter and is expected within four years to overtake Japan for the No. 2 spot, behind the U.S. Taiwanese original-equipment manufacturers are increasingly moving to the mainland, where labor is cheaper, and where powerhouses such as Dell and IBM are expanding their market presence. In November Taiwan lifted its $50 million cap on individual mainland investments, launching Taiwanese-invested companies such as Grace Semiconductor Manufacturing to build billion-dollar chip factories there...
...manufacturer and marketer, the CEO of Dell Computer could hardly be less enamored of tech gadgetry. His company is seldom first with a new feature or peripheral device. What excites him is cramming more processors into a server chassis or clustering a group of low-priced servers to do the work of a mainframe. He makes no apologies for sticking to the strategy he dreamed up 17 years ago in his dorm room at the University of Texas to beat IBM: sell directly to the customer and concentrate on value. "It worked then. Thing is, it works better...
...Dell Computer, based in Round Rock, Texas, near Austin, builds its servers around standard Intel chips and Windows software--a standard that smothers innovation, according to competitors of those companies. Michael Dell retorts that "what standards do is drive out inefficiencies. Dell is in the business of productivity, and that's a good business." He adds that "there's plenty of innovation within the standards." Even if his idea of a snazzy innovation is chopping a foot off the height of his servers so that they fit more easily through customers' doors...