Dell in China
Introduction to Dell
Michael Dell founded the company Dell to offer network servers, workstations, storage systems, Ethernet switches, desktops, and notebook PCs after successfully selling his computers to customers directly in Texas. Over the course of three years his sales volume warranted the opening of an international sales office in 1987. In 1988 he began selling to large customers including several government agencies and Dell became a publicly traded company.
Dell made the bold decision in 1994 to eliminate their products from retail stores and focused on mail order customers. In 1996 Dell began selling through their website as well. By eliminating the retail store presence Dell was able to reduce costs, reduce inventory, and maximize profit. Dell utilized a built to order system that allowed customers to specify exactly what they did and did not want on their Dell computer. Dell's just in time inventory system lowered inventory to 6 days and storage costs were saved.
In 1995 Dell entered the Chinese market. With a population of 1.3 billion this was a great new market for Dell to tap into. IBM, Compaq, and Hewlett-Packard had all ready realized this and had opened offices in China in the early 1990s. Dell quickly became competitive with not only those companies but also Legend, Founder, Great Wall, Toshiba, NEC Japan, and Acer. With so many competitors Dell faces intense competition to distinguish itself and to penetrate the market.
Chinese Market is Open for Dell
With at least 9 other major competitors in the Chinese market Dell is all ready dealing with a high level of competition. After spending quite a few years competing with Legend and Founder for the low-end market Dell switched to the high-end market in 2004. By breaking down the total market into smaller categories Dell is seeking to divide and conquer each individually. In the high-end market Dell is able to realize larger profits by focusing on servers, printers, and
Michael Dell founded the company Dell to offer network servers, workstations, storage systems, Ethernet switches, desktops, and notebook PCs after successfully selling his computers to customers directly in Texas. Over the course of three years his sales volume warranted the opening of an international sales office in 1987. In 1988 he began selling to large customers including several government agencies and Dell became a publicly traded company.
Dell made the bold decision in 1994 to eliminate their products from retail stores and focused on mail order customers. In 1996 Dell began selling through their website as well. By eliminating the retail store presence Dell was able to reduce costs, reduce inventory, and maximize profit. Dell utilized a built to order system that allowed customers to specify exactly what they did and did not want on their Dell computer. Dell's just in time inventory system lowered inventory to 6 days and storage costs were saved.
In 1995 Dell entered the Chinese market. With a population of 1.3 billion this was a great new market for Dell to tap into. IBM, Compaq, and Hewlett-Packard had all ready realized this and had opened offices in China in the early 1990s. Dell quickly became competitive with not only those companies but also Legend, Founder, Great Wall, Toshiba, NEC Japan, and Acer. With so many competitors Dell faces intense competition to distinguish itself and to penetrate the market.
Chinese Market is Open for Dell
With at least 9 other major competitors in the Chinese market Dell is all ready dealing with a high level of competition. After spending quite a few years competing with Legend and Founder for the low-end market Dell switched to the high-end market in 2004. By breaking down the total market into smaller categories Dell is seeking to divide and conquer each individually. In the high-end market Dell is able to realize larger profits by focusing on servers, printers, and