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  • Essay / Dell in China - 1666

    Introducing DellMichael Dell founded the Dell company to offer network servers, workstations, storage systems, Ethernet switches, desktops and laptops after selling successfully its computers to customers directly in Texas. Within three years, its sales volume justified the opening of an international sales office in 1987. In 1988, it began selling to large customers, including several government agencies, and Dell became a publicly traded company . Dell made the bold decision in 1994 to eliminate its products from retail stores and focused on mail-order customers. In 1996, Dell also began selling its products through its website. By eliminating the presence of retail stores, Dell was able to reduce costs, reduce inventory, and maximize profits. Dell used a built-to-order system that allowed customers to specify exactly what they wanted and what they didn't want on their Dell computer. Dell's just-in-time inventory system reduced inventory to 6 days and storage costs were saved. In 1995, Dell entered the Chinese market. With a population of 1.3 billion, this was a great new market for Dell to exploit. IBM, Compaq and Hewlett-Packard had all already realized this and opened offices in China in the early years. 1990..