Dell Computer Corporation was the one of the world’s largest direct sales computer company in the world. The company was founded in 1983 by Michael Dell in his dorm room at the University of Texas. The company expanded into the international market where it has manufacturing plants in the United States, Ireland, Malaysia, and China.
What are the issues of this case?
Dell wondered whether it should increase its global presence, especially in Asia and risk facing increasing turbulence worldwide. Dell needed to decide if it should increase its commitment in Malaysia by opening a second Malaysian manufacturing plant in 2001, to support the push for international expansion.
Dell identifies performance opportunities and accelerates growth in areas that have made money. The company exists with several key strengths that give them a competitive advantage. Most importantly they have the ability to produce a line of high-performance products compatible with the accepted competitor's standards. Next, Dell receives input from its customers regarding their products and services, their views on various products and response to advertising. This input gives it a competitive advantage in offering products and services and communication programs to meet its customers’ needs. Last, they have the ability to maintain efficient manufacturing operation because they have low inventory. Some examples of these strengths as it pertains to investment in Malaysia are as follows: Dell was the only manufacturer who used exclusively Intel microprocessors and the only manufacturer to offer an operation system from Microsoft for all its broad range of product, the direct distribution system that reduced costs and shorten turnaround times, Dell was enhancing and broadening the fundamental competitive advantages of the direct model by increasingly... [continues]
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