DELL
Hitotsubashi UniversityTokyo, Japan May 24, 2004
As we do a micro-analysis of the supply chain and the costs of all the molecular ingredients that go into that, what you find is massive inefficiencies in the way these products are delivered today.
We find a lot of markets that haven't been subjected to the same Darwinian economic evolution that's occurred in the PC market, and also the same people who buy computers, well, they also buy printers.You can't use a printer unless you have a computer, so it's a very large adjacent market, very easy to sell those products to the same customers.
we've changed the whole paradigm. The paradigm now is you don'thave to go to the store to get ink, the ink comes to you. It's a direct model. So your printer tells youyou're low on ink, you order ink and you get it the very next day.
And I think this goes back to a lack of understanding. Competitors will look at Dell and believe theyunderstand what we're doing, believe that we're simply selling computers over the phone, and theyrelish in this very simplistic explanation. They failed to go to the U.S. Patent and Trademark Office andnotice that we were filing patents. They failed to see that we were hiring PhDs. They failed to see thatwe were developing products that were winning awards and that we were winning customer satisfaction awards. And what they thought was a niche all of a sudden became the entire market.
they're not teachingthem yet because we're still inventing them. The cases that you're reading are perhaps five to ten years old; not ten minutes old.
we like to anticipate anything that can go wrong and think
about how we could prevent it.
I feel very fortunate to have been born in the country I was born in
MICHAEL DELL: If you tried to start a business in the same area that we're in that's going to be prettyhard because it's already a well-established area. But if you really want to have some success, youshould look for something that nobody else has done before and where there's a breakthrough whereyou can do something significantly better than what exists today.I think that true successes don't come from doing something somebody else has done, but rathersomething neat or different or special and sometimes those can be done without a lot of capital.
As we do a micro-analysis of the supply chain and the costs of all the molecular ingredients that go into that, what you find is massive inefficiencies in the way these products are delivered today.
We find a lot of markets that haven't been subjected to the same Darwinian economic evolution that's occurred in the PC market, and also the same people who buy computers, well, they also buy printers.You can't use a printer unless you have a computer, so it's a very large adjacent market, very easy to sell those products to the same customers.
we've changed the whole paradigm. The paradigm now is you don'thave to go to the store to get ink, the ink comes to you. It's a direct model. So your printer tells youyou're low on ink, you order ink and you get it the very next day.
And I think this goes back to a lack of understanding. Competitors will look at Dell and believe theyunderstand what we're doing, believe that we're simply selling computers over the phone, and theyrelish in this very simplistic explanation. They failed to go to the U.S. Patent and Trademark Office andnotice that we were filing patents. They failed to see that we were hiring PhDs. They failed to see thatwe were developing products that were winning awards and that we were winning customer satisfaction awards. And what they thought was a niche all of a sudden became the entire market.
they're not teachingthem yet because we're still inventing them. The cases that you're reading are perhaps five to ten years old; not ten minutes old.
we like to anticipate anything that can go wrong and think
about how we could prevent it.
I feel very fortunate to have been born in the country I was born in
MICHAEL DELL: If you tried to start a business in the same area that we're in that's going to be prettyhard because it's already a well-established area. But if you really want to have some success, youshould look for something that nobody else has done before and where there's a breakthrough whereyou can do something significantly better than what exists today.I think that true successes don't come from doing something somebody else has done, but rathersomething neat or different or special and sometimes those can be done without a lot of capital.
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