Research

Dell Inc. Description

The name Dell may be synonymous with "direct," but the computer giant has a more diverse approach to the market these days. The world's #1 direct-sales computer vendor provides a broad range of computer products for the consumer and enterprise markets. In addition to a full line of desktop and notebook PCs, Dell offers network servers, workstations, storage systems, printers, projectors, and Ethernet switches. It also markets third-party software and peripherals. Dell's growing services unit provides systems integration, support, and training. The company began selling through retail stores in 2007.

Entrepreneurial wunderkind Michael Dell pioneered the direct-sales model for computers and took the company from his dorm room to the top of the PC heap by keeping it focused on a simple formula: Eliminate the middleman and sell for less. Dell's built-to-order boxes allow for lower inventories, lower costs, and higher profit margins -- elements that have served it well through PC price wars and IT spending recessions. Though direct sales remain the core of Dell's business, a broader strategy has emerged since the company's founding father returned to the helm in early 2007.

Microsoft Description

Microsoft's ambitions are anything but small. The world's #1 software company provides a variety of products and services, including its Windows operating systems and Office software suite. The company has expanded into markets such as video game consoles, server and storage software, and digital music players. Microsoft has reached settlements to end a slew of antitrust investigations and lawsuits, including agreeing to uniformly license its operating systems and allowing manufacturers to include competing software with Windows. In 2008 Microsoft made repeated efforts to acquire Yahoo! but was rebuffed by that company's board of directors.