ABSTRACT
In the 1980s, IBM was the largest suppliers of personal computers (PCs) and Apple was struggling to find a place in the growing market. While a student at the University of Texas at Austin, Michael Dell recognized the market potential for a full-service PC supplier and started selling custom-designed personal computers from his dorm room. By placing an 800 number in computer magazines, customers would directly contact Dell to place their orders. The IBM and Apple brand names were not as important to experienced PC users as was the savings from eliminating the middleman distributor. Dell’s initial target market was experienced computer users who valued the customizations and lower prices.
