It's budgeting and the organization's implementation strategies are also considered in the final plan.
Dell is the second largest PC manufacturer in the world and has 60pct of its revenue from the US which is the largest market. However, with the recession and the attempt to malign Dell in this country, the company is looking for markets outside the US. The increasing market for laptops and desktop PCs in China, India, Brazil and Russia have given reason for Dell to make strategies to depend less on the US market and expand to other regions of high yield. Its presence in India since 8years has given it much exposure to make the appropriate strategies to suit the Asian market, particularly the Indian market, which has the most potential.
The economic advantages that Dell offers for the local market and which have been successfully displayed in China have more reason for Dell to gain a foothold in the already tapped PC market in India despite the presence of other strong contenders like HP, Lenovo, etc. and its own presence in the country for over six years now. The advantage on GDP with every investment by Dell enables it to gain faster penetration into the local market and enter other frontiers too.
"Then there is the multiplier effect. ...
have more reason for Dell to gain a foothold in the already tapped PC market in India despite the presence of other strong contenders like HP, Lenovo, etc. and its own presence in the country for over six years now. The advantage on GDP with every investment by Dell enables it to gain faster penetration into the local market and enter other frontiers too.
"Then there is the multiplier effect. A Peking University study of the Dell effect showed that for each $1 million spent by the company in China, $2.3 million was contributed to the nation's GDP, 92 new jobs were created and $144,000 was generated as tax revenues. Factor in China's PC penetration at 6% and Dell's revenue growth there at 26%, the implications are clearer. India with a PC penetration of just 1.8% and a population of 1.3 billion, offers the kind of potential Dell can hardly ignore. A latecomer it may be, and is up against stiff competition from old hands like HP, Lenovo, Acer and homegrown HCL Infosystems, but the motivation for Dell to scale up here are obvious. In less than six years, it has garnered a 36% market share in the large enterprise segment. However, it is still weak in the 1.7-million home buyer/retail desktop and portable media market. But Dell is eyeing a 10% overall market share in the next 18 months and a doubling of revenue to $1 billion; this, after taking nearly six years to hit $500 million. The $1-billion figure is just 1/60th of Dell's global sales and for this to be relevant to India, revenues would have to be many times more" (Prasad, Gupta, 2007).
Another reason that Dell can leverage in the Indian market, is its strong direct sales experience. Since, these kinds of economies do not permit high prices and are more accustomed to retail selling which offers