Michael Dell - The CEO who gave up his studies and the chance to create a billion-dollar computer empire

Like many other billionaires of the world technology village, Michael Dell also dropped out of school at the University of Texas, in the city of Austin to found Dell Computer Corp. - America's fastest growing technology corporation. In 1988, at just 23 years old, Dell went public (IPO) and this decision made him a billionaire.

Since that day, he has lived the lavish life of a successful businessman with private jets, seasonal houses and expensive cars. So, what is the fate that has helped him become as successful as he is today? Let's take a look at the memorable milestones in Michael Dell's life.

The CEO who dares to think, dare to do

Born in 1965, the son of a dentist, belongs to a traditional Jewish family that always values education and religion. As a teenager, Michael Dell attended the Herold School in Houston, Texas, and he showed an aptitude for business as well as a passion for technology. Dell first encountered the computer at the age of 15, when Michael disassembled a brand new Apple II computer and then reassembled it, only to find that he could do it.

His high school years did not go well and after graduation, Michael Dell entered the University of Texas at Austin, intending to become a doctor, but abandoned the idea when he experienced successes. first in the field of computers and engineering. He dropped out of school at the age of 19 to find his childhood dreams.

At that time (1984), the price of computers was popular at $3,000. Dell researched and found that if he bought the computer parts separately, it would only cost him $600. And if he reassembles them into complete computers, he can sell them for much less than the original price and still make a profit.

This is a great business opportunity and get rich. So he decided to set up his own computer business called PCs Limited. Ignoring disapproval from those who did not see through his talent and vision, Dell struggled to pursue his passion for computers and few dare to believe that it was the forerunner of the 18-year-old corporation. billion dollars now.

Dell Computer was founded on May 3, 1984 with an initial capital of $1,000 and an unprecedented idea: to sell programs directly to consumers, bypassing middlemen. Then from a computer supplier, Dell Company turned to computer manufacturing. To enhance its reputation, Dell hand-drawn its product advertisement, which is a box with the first two letters of Dell Company, the beginning of a great brand.

Michael knows the psychology of a customer who buys a computer that is easily frustrated when the machine malfunctions. Dell immediately set up a 24-hour hotline to respond to all customer requests. In addition, the company also has a technical team that brings together skilled computer experts to guide customers to use computers over the phone. When the Internet was born, Dell also quickly put the company online to promote.

So what's to come: the company now has about 41,800 branches around the world and last year's revenue amounted to $38.2 billion. Dell was the first supplier of computer components and services to the world's largest corporations.

In 2003, the Wall Street Journal named Dell one of the 10 most reputable companies. Currently the company ranks fourth in the United States in terms of computer manufacturing technology and entered the list of 500 best companies in the world according to the vote of Fortune business magazine.

In the past 10 years, despite the high-tech crisis many times, Dell still maintains an average annual growth rate of 40%. In the 1990s alone, Dell stock was always the number one choice with a dividend payout of up to 97%. In 2003, when all competitors were losing market share, Dell's market share in the US increased by 31%.

Modern Marketing Revolution

As expected, Dell's company was a huge success from its inception. Using a unique system to produce customized computers at extremely low prices compared to branded computers, PC Limited achieved sales of $6 million in its first year.

Since then, Dell has developed research into the chain from individual component suppliers to mass production. This business was initially quite successful through word of mouth from university students.

There is no school that teaches Dell how to market or promote his business, but he does it very methodically. Perhaps it was due to the experiences from childhood, which Dell accumulated.

At the age of 16, Dell worked as a publisher for the Houston Post where he lived. Since then, he has devised a principle as the guideline of his life: "It is not important what you sell, but how you do it".

Success from direct business model

Dell's direct business model combines many elements to deliver products of the best value to customers. It's customized products at low prices, plus fast shipping and impeccable customer service. With a direct business model, all Dell products supplied to customers are made to order. This approach has made Dell Computer Corporation the largest manufacturer and direct distributor of computer systems in the world.

A customer can call a Dell branch or visit www.dell.com to order a computer with the desired configuration. Within 5 days, the machine will be delivered to customers and with the same configuration, the price Dell offers is 10-15% lower than the price of competitors. In addition, Dell's maintenance and repair services are considered to be perfect. As a result, Dell ranks firmly among the top companies with reliable products and impeccable service.

Because of direct sales, Dell does not have to pay for intermediary distributors. As a result, the price is 12% lower on average than competitors. Nearly two-thirds of Dell's products are sold to governments, large corporations, and educational institutions.

A pioneer in the direct selling model, at one point selling more than $43 million worth of computers a day from more than 80 countries through its websites, generating more than 50% of the company's total revenue. Customers buying in this form are very diverse, from individuals to large business organizations.

Michael Dell invented a business model that the whole world wanted to learn. But after many years, no one has been able to completely replicate this model. For Dell, that is not surprising because it is rare for any company to be able to fully copy its business model. Even if they want to apply this model, reputable companies do not dare to risk giving up their familiar business and product distribution networks. The Dell model is encouraging, but hard to replicate because it's so unique.

In addition, the 80s of the last century was also the period of the initial boom of the internet, and most of all Dell understood that the computer was not a symbol of luxury, but a tool for working. .

What this young billionaire does is like a Marketing revolution, not stopping at word-of-mouth promotion, delivering to customers, online support, Dell also removes the concept of "inventory". All components are assembled and shipped to customers as soon as they are needed.

Michael Dell's Secret to Getting Rich

After achieving that miracle, Michael Dell concluded his business management philosophy: "customer-oriented, establish a clear strategy that can be discussed, understood, and implemented. Segmentation. work into controllable, calculated chunks and clear division of responsibilities Set goals to strive for Focus attention on actual performance, results achieved and decision making be active every day instead of just encouraging. And feel free to have fun."

As mentioned earlier, Michael Dell has, in fact, been in business since high school. Michael holds a long-term sales position for the Post Magazine in Houston. To increase the number of newspapers sold, Michael compiled a list of newly married long-term newspaper buyers to store in his computer. Then, Michael sent "wedding gifts" to the couples' homes by giving away newspapers for weeks at a time. Most of those families have subscriptions to newspapers, and with this "deal," Michael pocketed $18,000.

At the age of 18, attending the University of Texas at Austin, Michael still had a business dream. At that time, in the United States, personal computers were in a state of insufficient supply and demand, and sellers raised prices blatantly. Michael researched, knowing that IBM often forces dealers to receive more computers than they can sell, and this surplus is usually kept in storage. Michael came to negotiate with dealers to buy surplus machines at cheap prices. Trimming to improve a few small details in the machines, Michael gallantly brought his goods to the market at 15% cheaper than computers with the same performance circulating on the market. ang is a first-year college student, Michael works while studying, earning $50,000 per month.

Billionaire's marriage

In 1988, he met Susan Lieberman - a young fashion designer from the city of Dallas. Immediately, the two fell in love. Speaking to Texas Monthly, Susan said: "Most of the men I've dated talk about themselves a lot and try to impress me. But he's the best guy I've ever met. ." They married in October 1989 and have four children.

After getting married, Dell often took care of his wife and children. He spends about $2.7 million a year on security services, but he can't stop his children from using social networks. In 2012, the Instagram and Twitter accounts of Alexa, Dell's 20-year-old daughter, were locked down when a photo of her brother Zach Dell dining on the family private jet appeared on Tumblr.

Not only that, Michael Dell also owns a house of more than 3000m2 located on the top of a hill in the suburbs of Austin with a dense security force. The home has eight bedrooms, a tennis court, indoor and outdoor swimming pools and stunning views of Lake Austin. It is also considered the most expensive house ever built in the state of Texas.

In addition, the CEO of Dell computers also owns a nearly 600m2 farm located on a nearby hill and this is where his family raises Arabian horses. However, many people object to Dell paying only $1 million in agricultural taxes because sometimes he and his family and friends use the land to hunt deer in the area.

In 1999, businessman Michael Dell and his wife founded a charity called "Michael and Susan Dell Foundation", a charity organization for millions of tsunami victims in South Asia. In 2006, the foundation donated $50 million to the University of Texas.

In 2004, Dell stepped down as CEO of the company, but he still serves as chairman of the board. He has served on the Council Fund of the World Economic Forum and the Executive Committee of the International Business Council. He also serves on the US President's Advisory Council on Science and Technology and is on the board of trustees of the Indian School of Business in Hyderabad.

In real life, Michael is not a lively person, likes to show off, but on the contrary, he lives quite simply, wholeheartedly with his wife and children. Dell's image imprinted in many people's memory is a dashing man with a clean, bright face in a straight shirt and tie.

Always in the top 10 richest people in the world, is a living symbol of the success of an enterprising young person. It was he who did not hide his natural talent for business to follow the path that others outlined, and it was he who dared to change his mind and do something different from what others were doing.

Melinda - Bill Gates' wife revealed exhaustion in her house, the tragedy of many women team youtube17:22:10 05/05/2021As previously reported on May 4, billionaire Bill Gates has just announced the status of the relationship with his wife of 27 years, Melinda. They decided to divorce and did not disclose the reason for the breakup. Before this announcement, the family of Bill Gates and Melinda was considered a model. They are...