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Dell in China - Essay Example
Politics in China should be considered by business entities planning to enter this huge market as the government will be the largest customer of the firm. It was stated in the case that the Chinese political system is encumbered by bureaucracy and red tape…
With this rise in production, the country's revenue will expand together with individuals buying power.
One of the social changes happening in China is the role of computing and computing equipments in the social system. The case mentioned that top-level managers are becoming more and more technologically adept as they are becoming internet savvy.
The country is still immature in terms of technology. This is one of the most important considerations for Dell as it also wants to employ its direct-model strategy in China through the utilization of internet technology. The patronage of internet is hampered by the government's regulation which is speculated by the people to be against them.
The major strength of Dell, Inc. is its utilization of a business model which enables it to reap various benefits which are not enjoyed by its competitors. The direct business cut a significant amount of cost in the company's supply chain by eliminating the less value adding activities in the value chain. Inventories were kept low and technological breakthroughs are delivered to the customer within a week opposed to previous two months. The direct business model also enabled the company to market directly to the customer, thereby offering more customized products.
Another strength of Dell's is its cost leadership strategy. ...