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Dell, the world''s largest computer seller, started focusing on China in 1998. Its market share in China rose from less than 1% in 1998 to 7.4% in 2004. Dell has focused on low-end PCs and aggressively targeted state-owned large enterprises and individual consumers, where profit margins are typically lower, while other players focused on high-end PCs and targeted corporates and business consumers. But due to heavy competition from the local PC vendors, Dell decided to change its strategy by shifting its focus from low-end consumer PCs to high-end products like servers and storage systems for corporates and businesses. The case describes Dell''s expansion in China, the competition it faced from local players and the strategies it adopted to deal with the competition. A structured assignment ''305-082-4'' is available to accompany this case.