Dell Computer Corporation Expansion Overseas
In the past ten years, foreign expansion has become a major part of the business community. Many companies are seeking to expand globally in an attempt to maximize profits. This research paper will explore the foreign expansion of the Dell Computer Corporation. We will explore the ways in which this relatively young company has expanded overseas. We will examine the history of the company, the industry and the ways in which the company has expanded.
History of Dell
Dell Computer Corporation was founded by Michael Dell in 1984 and was incorporated in 1987 and has grown substantially in recent years. ("Dell Computer Corporation (NASD) - Business Description") The growth of the company has been unprecedented in lieu of the relatively young age of the corporation. ("Dell Computer Corporation (NASD) - Business Description") The headquarters for the corporation is located in Austin, Texas Dell's products include laptops, desktops and networking equipment. Additionally the company provides services such as support and consulting for companies.
Dell operates around the world through wholly owned subsidiaries and foreign sales made up 35% of Dell's revenues in 2001. ("Dell Computer Corporation (NASD) - Business Description")
According to the company's official site it practices a direct model of management. The standards of this model are,
Single Point Accountability- Dell aims to keep their customers happy through direct access to services and products.
Build to order-providing customers with systems of that are built to suit their needs.
Most Efficient Path to the Customer-building relationships with customers
Standards-Based Technology- giving customers high quality services and products.
Low Cost Leader-reducing costs through the creation of an efficient supply chain.("Dell Direct Model")
Dell's direct model has been studied thoroughly because of how efficient it is and how popular the company is with consumers. Not only are their computers dependable but the company is also known for friendly expedient service and the ability to help customers. This type of dependability is a prime example of why the company has been able to expand so quickly and so efficiently.
The Industry
Dell is part of the computer hardware industry. The industry provides products such as PC's and mainframe computers. ("Computer Hardware Industry and Profile")
Most often companies that a part of this industry serve a wide range of customers including corporations and individuals. The leaders in this industry include IBM, Hewlett Packard and Cisco. Most of the top 10 firms in this industry compete on an international level. ("Computer Hardware Industry and Profile")
Though the computer hardware industry was once booming, in recent years the industry has experienced a decrease in profits. Most of this is due to the downturn in the economy and a decrease in consumer confidence and spending.
The decrease in profits is also due to a decreased need of consumers to upgrade. The technology that computers provide is not growing at the rate that it once was which means that consumers can continue to use older computers to meet their needs.
The Expansion
Our global strategy is to be the premier provider of products and services, including those that customers require to build their information-technology and Internet infrastructures. With manufacturing facilities and sales offices throughout North America, Europe, Asia and South America, we are close to our customers wherever they are. And we use our outstanding products, services and direct relationships to meet the unique needs of those customers, one at a time." (Company Overview)
The strategy quoted above has allowed Dell to expand in an unprecedented way.
The most adventurous of these expansions came in August of 1998 when the company expanded into China. ("Dell Claims Major Inroads in Chinese Market") China, which is the world's largest market, is known to be a tough market environment for foreign investment. Dell ignored the skeptics and embraced the challenge of conducted...
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