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Dell inc.

Dell inc. Presented by group 6: Jannie, Sabrina & Kasper. Agenda 26-9-2012. Dell’s history The strategy of Dell Assessing China by the SLEPT framework Market rivals Dell’s setbacks in China Strategy 2012 - China. Dell’s history. 1984: Founded by Michael Dell, Texas

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Dell inc.

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  1. Dell inc. Presented by group 6: Jannie, Sabrina & Kasper

  2. Agenda 26-9-2012 • Dell’s history • The strategy of Dell • Assessing China by the SLEPT framework • Market rivals • Dell’s setbacks in China • Strategy 2012 - China

  3. Dell’shistory • 1984: Founded by Michael Dell, Texas • 1992: Top 500 of the largest companies worldwide • 1996: Commence of e-shopping • 1998 :Market extension to China • 2003: Dell overtook HP’s position as no.1 in the industry • 2007: Release of 9.000 employees and lost no.1 position Latest from MarketLine - 2012 • Dell has over 103.000 employees worldwide. • The company recorded revenues of $61,494 million during the financial year ended January 2011.

  4. Dell’sstrategy Dell

  5. Dell’s overall strategy • Direct sales through Internet, B2C and B2B • Streamlined the supply chain efficiently (supply & demand) • Understand customers requirements because of direct contact • Cost savings passed to customers

  6. Dell’s strategy - China Business as usual supported by Michael Dell’s 3rd golden rule NEVER SELL INDIRECTLY

  7. Assessing China by the SLEPT framework – Part 1 China

  8. Assessing China by the SLEPT framework – Part 2

  9. Competitors • 3 out of top 5 computer vendors are from China, they are promoted by the government. • Lenovo and Dell will remain the foremost rivals in the future market outlook for China. • Lenovo has imitated the direct model from Dell • Lenovo headhunted Dell key staff • Acquisition of IBM did enhance the potential and market share for Lenovo. • Lenovo deployed new approach, called “Transactional model”, for SME’s.

  10. Why Dell experienced setbacks • Lack of knowledge about the Chinese market (tangible products, face-to-face) • Market entry analysis is compulsory when entering new market • Best practice approach was not the right strategy in China • America is not China (copy & past)

  11. Strategy 2012 - China We have reflected on the followings: • Human skills are essential. • Acquire a market competitor with diverse core know-how. • eco-Dell (discount Dell) made by recycled materials, imitate TATA business model. Development of niche product(s).

  12. Thankyou for your attention

  13. Questions for Dell inc. • Identify and describe the key elements of Dell’s strategy and explain why it has been successful in the past. • Identify, analyse, and discuss the environmental factors using the SLEPT (social, legal, economic, political and technological) framework to explain what Dell faced when entering the Chinese market. • Why has Dell’s strategy not been so successful in the Chinese market as in other markets? • Will Dell be able to gain competitive advantage with its current strategy in the Chinese market? • Can Dell change its strategy and if so, what are the implications?

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