Dell 2007 Annual Report Download - page 5

Table of Contents
This report contains forward-looking statements that are based on Dell's current expectations. Actual results in future periods may
differ materially from those expressed or implied by those forward-looking statements because of a number of risks and uncertainties.
For a discussion of risk factors affecting our business and prospects, see "Part I — Item 1A — Risk Factors."
All percentage amounts and ratios were calculated using the underlying data in thousands. Unless otherwise noted, all references to
industry share and total industry growth data are for personal computers (including desktops, notebooks, and x86 servers), and are
based on information provided by IDC Worldwide Quarterly PC Tracker, March 3, 2008. Share data is for the full calendar year and
all our growth rates are on a fiscal year-over-year basis. Unless otherwise noted, all references to time periods refer to our fiscal
periods.
ITEM 1 — BUSINESS
General
Dell listens to customers and delivers innovative technology and services they trust and value. As a leading technology company, we
offer a broad range of product categories, including desktop PCs, servers and networking products, storage, mobility products, software
and peripherals, and services. According to IDC, we are the number one supplier of personal computer systems in the United States, and
the number two supplier worldwide.
Our company is a Delaware corporation and was founded in 1984 by Michael Dell on a simple concept: by selling computer systems
directly to customers, we can best understand their needs and efficiently provide the most effective computing solutions to meet those
needs. Our corporate headquarters are located in Round Rock, Texas, and we conduct operations worldwide through subsidiaries. When
we refer to our company and its business in this report, we are referring to the business and activities of our consolidated subsidiaries. We
operate principally in one industry, and we manage our business in three geographic regions: the Americas; Europe, Middle East and
Africa ("EMEA"); and Asia Pacific-Japan ("APJ"). See "Part I — Item 1 — Business — Geographic Areas of Operations."
We are committed to managing and operating our business in a responsible and sustainable manner around the globe. This includes our
commitment to environmental responsibility in all areas of our business. In June 2007, we announced an ambitious long-term goal to be
the "greenest technology company on the planet" and have a number of efforts that take the environment into account at every stage of
the product lifecycle. See "Part I — Item 1— Business — Sustainability." This also includes our focus on maintaining a strong control
environment, high ethical standards, and financial reporting integrity. See "Part II — Item 9A — Controls and Procedures."
Business Strategy
Our core business strategy is built around our direct customer model, relevant technologies and solutions, and highly efficient
manufacturing and logistics; and we are expanding that core strategy by adding new distribution channels to reach even more commercial
customers and individual consumers around the world. Using this strategy, we strive to provide the best possible customer experience by
offering superior value; high-quality, relevant technology; customized systems and services; superior service and support; and
differentiated products and services that are easy to buy and use. Historically, our growth has been driven organically from our core
businesses. Recently, we have begun to pursue a targeted acquisition strategy designed to augment select areas of our business with more
products, services, and technology that our customers value. For example, with our recent acquisition of EqualLogic, Inc., a leading
provider of high-performance storage area network solutions, and the subsequent expansion of Dell's PartnerDirect channel, we are ready
to deliver customers an easier and more affordable solution for storing and processing data.
Our core values include the following:
• We simplify information technology for customers. Making quality personal computers, servers, storage, and services affordable is
Dell's legacy. We are focused on making information technology affordable for millions of customers around the world. As a result
of our direct relationships with customers, or "customer intimacy", we are best positioned to simplify how customers implement and
maintain information technology and deliver hardware, services, and software solutions tailored for their businesses and homes.
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