A computer is relatively easy to transport and can be easily distributed from the manufacturer to the consumer. Dell has used many different channels to sell their PC’s over time such as computer stores, department stores, over the phone, Ebay and of course their website. Manufacturers selling direct to the consumer as Dell did eliminates costs associated with marketing and distribution as there is a reduction in the number of links between the product being sold to the consumer and the consumer buying the product. Initially Dell was distributed directly to customers as they were able to order a computer made to their individual selections, with a gross turnover of $73 Million in the first year of trading it seemed that Dell was going to be tough competitor in the Personal Computer Market. Dell was established in 1980 by Michael Dell at the age of 19 when he decided to cut out the middle man and directly connect himself with the customer supplying computers without the expense of a distribution channel.
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