Part 4/14:
Dell’s hallmark insight came from deconstructing industry giants such as IBM and early rivals like Compaq. By opening up a PC or a mainframe, he discovered they were simply assemblies of off-the-shelf components. This realization ignited the idea that, if these behemoths could assemble machines from parts available from other suppliers, so could he.
He would meticulously analyze costs of individual chips, dissect supply chains, and understand the logic flow inside circuits. This detailed cost analysis wasn’t just curiosity—it became a strategic tool. It revealed margins, vulnerabilities, and opportunities to undercut competitors by optimizing supply chains and reducing inventory days.