Dell Computer Corporation use different strategies to enter and remain competitive in the global market. Continuous improvement, innovation and creativity by the company have made the company’s products competitive.
The company research and development department is mandated with the task of advising the company on the nature of products it should manufacture. Other than the team going to the field for data collection, it also utilizes customer’s responses. It has a business intelligence system for information consolidation. The company specializes in computers, laptops, and computer accessories (Fred, 2008).
To sell its products at a competitive price, the company has embarked on cost reduction strategies. This includes recycling, economies of scale and adoption of high technology in its processes. It embraces a “be direct” manufacturing strategy. The strategy ensures that product cycle starts from design by the company and it ends at exportation department for sale of products made. This strategy helps the company make products which are responsive to consumer needs.
To market internationally, the company adopts an integrated marketing communication strategy (IMCS). The strategy combined different marketing mix strategies like advertisement, maintaining good public relations, engaging in social corporate responsibilities, using 4Ps of marketing, sales promotion, and direct marketing (Dell Computer Company, 2010).
When recruiting, the company looks for experienced employees. The human resources department recruits from its local company of operation and internationally. Top management and department leaders are people with experiences from different companies relevant to the department they are leading.
Dell has an effective supply chain management that takes care of forward, backwards and reverse logistics in the company. As an ethical policy, the company has a green supply chain management as an environment conservation measure. This has led to an international competitive advantage (Dell Computer Company, 2010).
What are some opportunities and challenges for its present global operations? How has the company utilized or dealt with these opportunities and challenges?
Opportunities
Globalisation has facilitated international trade. This has made access to the global markets possible. Improvement in technology has increased the demand for computers and laptops that are Dells products.
Challenges
The world is recovering from financial crisis that started in 2007. This has reduced trade and economic developments of countries. The company is also facing competition from other companies in the same industries like HP Computer Company and Acer Computer Company. Mobile phones are also increasingly being used as computer substitute (Khurana, 2006).
Dell has utilised the opportunities offered by global market by diversifying to other countries. To counter the challenges offered by the global market, the company has embarked on continuous products improvement and product differentiation. Currently it has introduced note-book laptops a move aimed at countering competition from phones.
What are some new global issues that the company needs to be aware of?
The company need to be aware of economic trends in different countries, more specifically in this era of recovery from global financial crisis. Consumer needs and preference are not static but change with time. To satisfy customers, the research department should know the expectation of the consumers and advise the company accordingly.
For example, there have been concerns about environmental conservations and customers are more willing to buy from companies that protect the environment through their processes and products. The company should also take note on ethical management strategies that are taking preferences in the world. Engaging in social corporate responsibilities that are responsive to consumer expectations will assist in developing customer loyalty (Khurana, 2006).
Are there any financial indicators that you can find to justify the company’s globalization decision?
On 26th August 2010, Dave Johnson, Dells senior vice president announced that the company had completed acquisition of 3PAR. 3 PAR is a leading storage company with branches distributed in different countries. The cost of the acquisition was settled at $1.6billion. The move is a show that the company is doing well in the global market and if anything it needs to increase its presence.
According to notes to financial accounts 2010, global market in Brazil, India, Russia, and China (BRIC) accounted for 12% of the company’s total revenue. This was an increase of 52% from what the countries recorded in 2009.
According to Dells third quarter financial statement, 2010, its increased profits were attributed to global market sales. It recorded an operating profit of $1.05 billion and an EPS of 45 cents per share. This is an indication of the company’s success in global markets (Dell Computer Company, 2010).
What are the strategic implications of its global success to Canadian businesses?
The availability of consumer responsive products in Canadian market has facilitated efficiency in doing business. Businesses have adopted computers of different capacities from their operations, a move that has lead to increased efficiency. When companies adopt good technology, they make strategic decisions regarding various processes in their operations. Some of the strategies favoured by computers include business intelligence tools, knowledge management tools, and computerised supply chain management.
These are some of the benefits. Companies selling computers and laptops in Canada are facing increased competition from Dell products. This has lead to innovation and creativity as those companies try to compete with the company (Luiela-Magdalena, Eugenia & Oana 2008).
References
Dell Computer Company. (2010). Financial News. Web.
Fred, D. (2008). Strategic Management: Concepts and Cases. New Jersey: Pearson Education.
Khurana, A. (2006). STRATEGIES FOR GLOBAL R&D. Research Technology Management, 49(2), 48. Retrieved from MasterFILE Premier Database.
Luiela-Magdalena, C., Eugenia, Ţ., & Oana, B. (2008). INTERNATIONAL MARKETING STRATEGY. Annals of the University of Oradea, Economic Science Series, 17(4), 848-850. Retrieved from Business Source Complete database.