Dell
Michael Dell, while still a student at the University of Texas at Austin, founded the company as PC's Limited with just $1000, in his off campus dorm room, in 1984 to sell IBM-compatible computers built from stock components. He founded the company on the principle that by selling personal computer systems directly to customers. In 1985, the company produced the first computer of its own design.
Dell sells all its products both to consumers and corporate customers, using a direct-sales model via the Internet and the telephone network. Dell maintains a negative cash conversion cycle through use of this model: in other words, Dell Inc. receives payment for the products before it has to pay for the materials. 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 attempted to adapt this same business model, but due to timing and retail-channel pressures......
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