Dell in China: The Strategic Rethinking



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Code : BSM0017

Year :
2005

Industry : Engineering, Electrical and Electronics

Region : China

Teaching Note:Available

Structured Assignment :Available

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Evolution of Dell in China Michael Dell started selling personnel computers directly to the customers in Texas, US, bypassing intermediary retailers and distributors in 1984. The company was namedDellComputer and international sales offices were established in 1987. In 1988 the company started selling to larger customers, including government agencies and became public traded company. Dell opened subsidiaries in Japan and Australia in 1993. It abandoned retail stores in 1994 to focus on its mail-order origins. In 1996 the company started selling PCs through its web site...

Growing Challenges Despite thesemeasures,Dell had been facing continuous pressure fromthe localPCmanufacturers in China.According to Gartner, a research and analysis provider about the IT industry, prices and profit margins had been decreasing dramatically, and PC vendors aiming for increasedmarket share were notmakingmuch profit. To survive in thesemarket conditions,Dell had to either lower its quality and service levels,whichwould result in customer dissatisfaction, ormaintain its quality and service levels and accept a decline in profits. So, Dell decided to change its existing focus from low-end consumer segment to high-end segment...

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