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Showing posts with the label Michael Dell

Peasants and PCs

There's been a bit of hype in the media lately regarding Michael Dell's return to running the company he founded. It brings up memories of the whole Compaq merger mess, which was Carly Fiorina's "me, too" response to the rise of Dell Computer. Fiorina, with her degree in medieval history, set out to out-Dell Dell and was instead undone by her own shortsighted ignorance. It's a classic example of how you should be careful what you wish for, because you just might get it. Dell became a giant in the PC world by manufacturing customized PCs out of standard components, like electronic Lego sets. Dell sourced the cheapest components it could get from vendors, then relentlessly optimized the assembly process, driving out costs. Forgoing the traditional bricks and mortar retail channel and its associated margins and overhead, Dell sold its wares directly to customers, first via telephone and later on the Internet. Back in those days the average new PC cost...