Dell: Selling Directly Globally (2007) Harvard Case Solution & Analysis

As of January 31, 2007, the Corporation Dell Inc announced the return of Michael Dell, the founder, as CEO, replacing Kevin Rollins to provide day-to-day management of problematic PC manufacturer. Radical decision was taken after a tumultuous year that saw a sharp decline in market share and profitability, and which ended with Dell losing its leading position in the industry, Hewlett-Packard, which he received in 2003. After the high-flying success of the event with the revolutionary direct customer business model, Dell is now obvious problem before the turn around. This is a case management strategy related to the applicability of the direct business model client in global expansion, further complicated by the changing industry dynamics. Application of the model depends on many factors that are beyond the company's control. The combined effect of these factors, such as physical infrastructure, telecommunication infrastructure, the political climate, transport networks, the availability of appropriate staff, determine market readiness of a country. Meanwhile, changes in market conditions, such as consumer buying patterns and patterns of growth of the market, can also degrade the effectiveness of the model. The test is, Dell can successfully apply its direct model to other markets with different socio-economic conditions, particularly in China. Furthermore, it should steadily adhere Dell direct model in the face of shifting market conditions, the global and regional levels? What strategy will be developed in order to win the second-largest PC market, China? "Hide
by Iris Hong Wang, Ali Farhoomand, Pauline Ng Source: University of Hong Kong, 25 pages. Publication Date: August 15, 2007. Prod. #: HKU682-PDF-ENG

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