Dell 1999 Annual Report Download - page 4

Cooperative Research and Development
The Company has successfully developed cooperative, working relationships with many of the world's most advanced technology
companies. Working with these companies, the Company's engineers manage quality, integrate technologies and design and manage
system architecture. This cooperative approach allows the Company to determine the best method and timing for delivering
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new technologies to the market. The Company's goal is to quickly and efficiently deliver the latest relevant technology to its
customers.
Custom-Built Computer Systems
The direct model is based on the principle that delivering custom-built computer systems is the best business model for providing
solutions that are truly relevant to end-user needs. This concept, together with the Company's flexible, build-to-order manufacturing
process, enables the Company to achieve faster inventory turnover and reduced inventory levels and allows the Company to rapidly
incorporate new technologies and components into its product offerings.
Custom-Tailored Service and Support Programs
In the same way that the Company's computer products are built-to-order, service and support programs are designed to fit specific
customer requirements. The Company offers a broad range of service and support programs through its own technical personnel and
its direct management of specialized service suppliers. These services range from online support to onsite customer-dedicated systems
engineers.
The Company believes that it has significant opportunities for continued growth in all parts of the world, in all customer groups and in
all product categories, ranging from enterprise systems, such as network servers, high-end workstations and storage, to home PCs.
While the Company believes that its business strategy provides it with competitive advantages, there are many factors that may affect
the Company's business and the success of its operations. For a discussion of these factors, see "Item 1 — Business — Factors
Affecting the Company's Business and Prospects."
Geographic Areas of Operations
The Company conducts operations worldwide on a geographic basis, with those geographic segments being the Americas, Europe and
Asia-Pacific and Japan regions. The Americas segment, which is based in Round Rock, Texas, covers the U.S., Canada and Latin
America. The European segment, which is based in Bracknell, England, covers the European countries and also some countries in the
Middle East and Africa. The Asia-Pacific and Japan segment covers the Pacific Rim, including Japan, Australia and New Zealand, and
is based in Hong Kong (for areas other than Japan) and Kawasaki, Japan (for Japan). See "Item 1 — Business — Factors Affecting the
Company's Business and Prospects" for information about certain risks of international activities.
The Company's corporate headquarters are located in Round Rock, Texas, and its manufacturing facilities are located in Austin,
Texas; Nashville, Tennessee; Eldorado do Sul, Brazil; Limerick, Ireland; Penang, Malaysia; and Xiamen, China. See "Item 2 —
Properties."
For financial information about the results of the Company's operating segments for each of the last three fiscal years, see Note 12 of
Notes to Consolidated Financial Statements included in "Item 8 — Financial Statements and Supplementary Data."
During fiscal year 2000, the Company expanded operations to the Nashville, Tennessee area and opened a manufacturing facility in
Eldorado do Sol, Brazil, to serve Latin America. See "Item 2 — Properties."
Products and Services
The Company offers a wide range of products and services, including desktop computer systems, notebook computers, workstations,
servers and storage products, as well as software, peripherals and service and support programs.
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Desktop Computer Systems
The Company offers two primary lines of desktop computer systems. The OptiPlex® line is designed for corporate and institutional
customers who require highly reliable systems optimized for use in networked environments. The Dimension® line of desktop
computer systems is designed for small businesses, workgroups and consumers, who generally demand fast performance and the latest
technology without the need for remote manageability.
Notebook Computers
The Company offers two lines of notebook computer systems, each designed for targeted customer needs. The Latitude® line is
targeted to business customers who require highly reliable and durable systems with maximum connectivity for use in networked