Dell In China

About Dell Michael Dell founded Dell to offer network servers, workstations, storage systems, Ethernet switches, desktops, and laptops after selling computers directly to Texas customers. In three years, his sales guaranteed the opening of an international sales office in 1987. In 1988, he began selling to major customers including several government agencies, Dell became a public company. In 1994, Dell boldly decided to eliminate its products from retail stores and focus on mail order customers.

Dell's growth in China has been extremely large in recent years and it is the second largest market for computer manufacturers after the United States. This expansion shows that the Chinese market is becoming increasingly important for computer sales and manufacturing. In the second quarter of 2010, its sales in China were approximately $ 4 billion (GECR, 2010). Dell has two computer manufacturing facilities in Xiamen and a global product engineering center in Shanghai. There is a global service center in Dalian (Ladendorf, 2010). Dell is also planning to open a second major operation center in China in Chengdu and is planning to be a manufacturing and customer support center (Reuters, 2010). Dell is the second largest computer systems supplier in China, accounting for 9% (Dell, 2010). Expansion to China gives companies the opportunity to reduce labor costs (Fan, 2004). Reducing labor costs will help Dell save more money and increase profitability (Eskildson, 2009)

Dell is a potential important competitor. It is one of the world's largest computer companies. Kitty Fok (IDC analyst) report found that China is an important goal of Dell. Although market share is less than 1%, Dell raised the price of 4500 S PC by 15%. The goal is to capture the entire PC market. In the field of technology, marketers need to consider the pace of technology change, innovation opportunities and so on. Major new technologies will influence economic growth rate and lifespan. For example, the CPU (Central Processing Unit) has a period from 80 Hz to 06 GHz within 5 years. Over the past five years, personal computers have become more and more popular, and international companies such as Intel and AMD are becoming increasingly powerful. Rapidly changing computer technology also offers many opportunities for us to expand our organization.