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The success and strategy of Dell Computer

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  1. Dell in India
  2. Dell in China

Dell Computer, founded in 1984 by Michael Dell, has experienced major international growth in recent years, and it continues to expand. The business model of the company is unique in that it was the first company to build computers and sell them directly to consumers, cutting away the middleman. Using this strategy, a customer is able to easily customize his or her computer by specifying the details, and after the order is made, Dell would put the computer together in one of their assembly plants. This strategy has been very successful in the United States, and in the late 1990's, Dell decided to expand this strategy internationally.

[...] Another marketing strategy tailored specifically to China is selling a low-cost computer. In March of 2007, Dell computer sought to improve their market share by defeating their competitor, the Lenovo Group, by offering a starting price of only $336. This low-cost strategy was meant to switch Chinese consumers from one computer provider to another based on simple economics: Prices will range from about 2,599 yuan, or $336, to 3,999 yuan, or $517, and the system will be available only in China, Dell said. [...]


[...] The strategy of using cheap labor to produce excellent customers service from English-speaking technical support agents has proved successful, and it is just one of the many cost cutting methods used by Dell to ensure that the cost of production remains low. Another important strategy in India was focusing more on software than on hardware. This major shift occurred at the end of 2007, when Dell computer closed its R&D department in India and moved it to China. When this occurred, the strategy of designing and creating hardware changed, and software become the new focus. When this occurred, a Dell spokesperson explained: Our future mission in India has been redefined. The country has great strengths in software. [...]


[...] Also, training Dell employees to effectively deal with computer problems using call centers, as is the case in India, has been an important foundation to building customer loyalty, trust, and to encourage return customers. While China has been the main place for actually manufacturing the parts used in Dell computers at low-cost, workers in India have engineered much of the software necessary to keep ahead of other computer companies. Using these various marketing and operational strategies, Dell remains a leading company amongst competitors, and it continues to expand into new, unexplored regions. [...]


[...] Another important market for Dell computer is that of China. In 1998, when the first Dell manufacturing plant opened in China (Kraemer and Dedrick, a major step forward was taken by the company. As in India, most people in China were not yet proficient with computers, and Dell sought to educate them and then sell them the products. In order to accomplish this, Dell used various strategies to spark interest in computers and to make the Dell name recognizable in China. [...]

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