Business Model
Dell’s original business model was very simple: Dell machines were made to order and
delivered directly to the customer. The company had no distributors or retail stores. Dell PCs
had consistently been listed among the best PCs on the market by PC World and PC
Magazine. Cash flow was never a problem because Dell was paid by customers long before
Dell paid its suppliers. The company held virtually no parts inventory. As a result, Dell made
computers more quickly and cheaply than any other company.