Dell in China: The Strategic Rethinking



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Code : BSM0017

Year :
2005

Industry : Engineering, Electrical and Electronics

Region : China

Teaching Note:Available

Structured Assignment :Available

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Abstract: 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 PC's and aggressively targeted state-owned large enterprises and individual consumers, where profit margins are typically lower, while other players focused on high-end PC's 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 PC's to high-end products like servers and storage systems for corporates and businesses.

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Pedagogical Objectives:

  • To discuss the expansion strategies of Dell in China
  • To discuss the strategies it adopted while facing competition from the local players

    Keywords : Dell Inc.; Michael Dell; China; World's largest computer vendor; PC market share; Growth strategy; Restructuring / Turnaround Strategies Case Study; Chinese PC vendors; On-line sales; High-end PC market; Low-end PC market; Market share; Pricing strategy; Target consumers; Competitive strategies; Brand management

    Contents :
    Evolution of Dell in China
    Growing Challenges


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