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Case
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Reference no. 303-194-1
Authors: A Mukund; V Sarvani
Published by: IBS Center for Management Research
Published in: 2003

Abstract

The case discusses Dell Computer Inc''s (Dell) initiatives to build and strengthen its presence in the Chinese personal computer (PC) industry. It briefly details Dell''s evolution over the years and examines the rationale for its entry into China. The case also examines the measures adopted by Dell to succeed in China and the ways in which it overcame the problems it faced while implementing its famous ''Direct Model'' in the country. The reasons for Dell''s rapid growth in China (especially the marketing initiatives) have been discussed in detail. The case ends with a brief note on the competition facing Dell (from players such as Legend) and its future prospects in China. The case is structured to enable students to: (1) understand the dynamics of the PC market in China and its attractiveness to multinational players; (2) analyse Dell''s globalisation strategy with respect to China and study the way in which the company entered the country; (3) understand how and why even a proven business model (Dell''s direct selling model) needs to be modified and localised depending on a given country''s requirements (the hybrid model); (4) analyse the different problems that can arise when entering a foreign market, and the ways in which these problems can be overcome; and (5) appreciate the nature of competition in the global arena (from local as well as multinational players) and learn about the strategies that need to be adopted to compete effectively. The case is aimed at MBA/PGDBA students, and is intended to be part of the strategy and general management curriculum.
Location:
Industry:
Size:
Large
Other setting(s):
1998 to early 2003

About

Abstract

The case discusses Dell Computer Inc''s (Dell) initiatives to build and strengthen its presence in the Chinese personal computer (PC) industry. It briefly details Dell''s evolution over the years and examines the rationale for its entry into China. The case also examines the measures adopted by Dell to succeed in China and the ways in which it overcame the problems it faced while implementing its famous ''Direct Model'' in the country. The reasons for Dell''s rapid growth in China (especially the marketing initiatives) have been discussed in detail. The case ends with a brief note on the competition facing Dell (from players such as Legend) and its future prospects in China. The case is structured to enable students to: (1) understand the dynamics of the PC market in China and its attractiveness to multinational players; (2) analyse Dell''s globalisation strategy with respect to China and study the way in which the company entered the country; (3) understand how and why even a proven business model (Dell''s direct selling model) needs to be modified and localised depending on a given country''s requirements (the hybrid model); (4) analyse the different problems that can arise when entering a foreign market, and the ways in which these problems can be overcome; and (5) appreciate the nature of competition in the global arena (from local as well as multinational players) and learn about the strategies that need to be adopted to compete effectively. The case is aimed at MBA/PGDBA students, and is intended to be part of the strategy and general management curriculum.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1998 to early 2003

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