Dell is now using the Internet and e-commerce to create closer relationships with customers that
it has previously considered transactional—individual consumers, the home and the small
business market. If Dell succeeds, it will have found a low cost, effective way to extend its
reach to new customers in undeveloped and emerging markets that have been too expensive to
cultivate in the past. This would include markets outside the U.S. where Dell is just beginning
to concentrate. If Dell is unable to develop such new markets profitably, its growth rate will
continue to decline. Thus, Dell’s ability to extend its successful IT and Internet-enabled
business model beyond its core market of large U.S. organizations is a key to its future growth.