UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA – Molino Campus
College of Engineering
Statement of the Problem
Dell experience and knowledge with the direct model, particularly with the leadership it have when it comes to online direct selling is their greater advantage. However, The Legend, A leading PC manufacturing company in China adopted the direct model of Dell and was able to cut down the cost and reduce inventory holdings in the process.
External Key Issues (Opportunities & Threats)
Staffing was another issue in China as it was difficult to find experienced direct sales people because direct sales were a new profession in china.
The threat of growing too rapidly led to a change in Dell’s strategies. Dell pursued every opportunity that presented itself and caused opportunities to become a threat. This created a shift in its focus to come away from external orientation to strengthen the company internally. Major Customers in China’s PC market were Government and Public Companies, and securing government contract was a major problem as they were influenced by local companies like Legend and Great Wall.
Internal Key Issues (Strengths & Weaknesses)
Computers in Asian market were sold through vendors; hence there was an increase in operating cost and rice of computer.
Consumer sector in China was a lot different from US as the price of a PC could cost the equivalent of three months of a person wages.
Online payment had to be made by credit card, cheque or telegraphic transfer. Average consumer could not afford an investment; very few had a bank account. This created complications and delayed the ordering process.
· Produce High-performance product
· Receives input from its customers
· ability to maintain efficient manufacturing operation because they have low inventory
· Rapid Growth
· No advanced technology
· Long purchasing process
· Its rise on e-commerce sales
· Tablet and Smartphone market development
· Developed international websites to boast online revenues
· Expansion opportunity which allows Dell to reap the benefits of lower import prices
· Patents, copyrights and imitations
· Massive competition
· Threat of substitution
· Hassle in buying since it requires your to have credit card, cheque and other bank terms of payment.
· Does not need a store to rent