Dell
Case Analysis – Dell: Selling Directly, Globally
Central Theme:
Dell strives to secure their position in the global market by applying their pioneered strategy, the direct method, to every country they penetrate. They believe that it is just a matter of timing and readiness for countries to accept this concept and once they hit these marks then nobody can stop them. This case analysis will focus on Dell’s global expansion and will cite most examples on their next target, China. We will discuss, in detail, Dell’s strategies, adjustments, and threats in dealing with foreign countries.
Critical Issues:
Dell’s most significant issue is its direct method that they are applying to every foreign market. It is important to discuss the method that they have been following and how effective it is to be applied to every country they target.
China is also a significant issue because of its great power to secure a company like Dell, if given the support. Dell faces a number of problems as it seeks entrance into the Chinese market such as; government regulations on manufacturing, consumer access to its online selling system, and its local competitors. To successfully enter in this market, Dell must make concessions with the Chinese government and tailor their direct selling method to accommodate the cultural differences of their customers.
Content of Current Strategy:
Target
Dell’s strategic target is to maximize their market share. Their philosophy is to start at the bottom then slowly move to the top, “bringing new technology at affordable prices to the widest possible group of customers” (Ng, C156). By practicing this method, in 1999, it ranked second in the US and in the world with the number of computers sold. However, this is not enough for Dell. It will not be long until other company adopts their strategy, so they have decided to penetrate China, the most populous country in the world and...
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