How Did Dell Company Get Into Printer Business

                                                                                         

The Dell Company is an American success story. Initially operating from a collage dorm room, the Dell Company was originally named PC Ltd. The founder, Michael Dell, felt that he could better serve computer users if he were to build each computer to a specified set of choices provided by him. He would then construct each computer individually, addressing those needs and ship directly to the customer. His business grew right from the start, with a loan from his family, to over $73 million in its first year.

A smart model

The first smart move that the Dell Company made was to construct a strategy that appealed to a new breed of customer. Computer users were a new breed and fairly savvy about how computers were constructed. The Dell Company focused on this aspect of the user and began using it throughout the company as a model. Computers could be built more cheaply and to individual specification. There was no real need to go to a retailer where you would end-up with a pre-constructed computer giving you options you did not want.

Other products, same model

The company grew and grew. There was little that could affect it. Even when the US economy soured, the company found ways to increase market share at the expense of foundering competitors. It began to look at other markets to use this business model in. The printer business, with all its accessories, and the internet server market at the low end of the pricing spectrum seemed to be good places to let the model work.

Staying close to the core

The printer business seemed like a good place to ply the company’s model. The one dilemma that the company faced, however, was that it did not want to stray to far from its primary product line. With this in mind, and a relationship with another printer manufacturer not working as well as it could, the company approached Lexmark to produce a line of Dell printers and ink cartridges. This way of approaching the printer business would not expose the company to distractions, but give it a bundled product line and access to the lucrative toner and ink markets.

Today’s printer business

The company has definitely evolved since it began offering its first Dell printers. Today’s offerings cover the consumer and business markets with color, ink jet, laser and label printers. The company has gone through some interesting configurations in just about every aspect of its business and management, but has managed to stay fairly close to its core business.

The interesting aspect to this closeness is that it has evolved depending upon the region of the world that one talks about. Australia sells and orders in one way while Eastern Europe works in a slightly different way. Whatever the form, however, the company is still strong and selling all of its products to good results.

About the author:
This Article is written by John C. Arkin from PrintCountry, the contributor of Ink & Printer Reviews. More information on the subject is at How did Dell Company Get into Printer Business, and related resources can be found at Dell Ink Cartridges.

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