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Strategic managemt internation expansion strategy - Essay Example

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Dell Computer is fairly new in the business world but has positioned itself as a major player in the information technology field. Dell's core philosophies and competencies have a lot to do with Dell's success. Dell has had to adjust its market model to enter foreign markets…
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Strategic managemt internation expansion strategy

Download file to see previous pages... Dell Computer is headquartered in Round Rock, Texas, in the United States. The company manufactures computer components and provides service and support to individuals, businesses, educational and government organizations around the world. Dell computer has been in business for a relatively short period of time (since May of 1984) but has realized a global presence that accounts for 44% of its total revenue for the first (fiscal) quarter of 2007. (Dell, 2006) Dell's global presence includes operations in Europe, Asia, and the Americas. The computer company has used its unique business model (direct model) to enter and compete in the global marketplace. Success for this company has been hard earned as Dell has had to adjust its model to accommodate market conditions in global markets it has entered. What has made Dell so successful is its focus on its direct model of customer service. According to Dell, Inc. "Dell listens to customers and delivers innovative technology and services they trust and value. Uniquely enabled by its direct business model, Dell sells more systems globally than any computer company, placing it No. 25 on the Fortune 500. Company revenue for the past four quarters was $56.7 billion." (Dell Inc, 2006)
Dell computer anticipates making changes to its business model in response to market indicators in foreign markets that may indicate that Dells' international strategies may not be working as well as anticipated. Each market, and Dell's performance in that market, will be critically analyzed. Dell plans to focus on three areas of concern to beef up its approach to market conditions. These three areas are: customer service, product leadership, and productivity and cost improvements. Dell's focus will be on "providing the broadest and highest quality product line in history" (Dell, 2007)

2. Core Competencies
Dell's core competencies consist of a business model unique in the information technology industry. They use a customer direct model with a twelve day inventory on hand vs. the industry standard of 30 to 45 days of stock on hand. Dell puts great emphasis on lessons learned so as to not repeat mistakes made in the past. Dell claims its focus on its direct model and its virtually integrated organization as keys to its local and global successes. Dell has brought "customers and suppliers inside the business though the capabilities of evolving internet technology. The fundamental results were speed, efficiency, direct customer service, responsiveness to customer wishes, and a soaring stock price" (Finney, 2002). Michael Dell's core philosophies have become Dell's core philosophies. Some of these philosophies include (Finney, 2002):
- Hiring Ahead of the Curve - Segmenting the CEO
- Building a Company of Owners - Staying Allergic to Hierarchy
- Mobilizing People Around a Singe Business Goal
- Developing Products from the Customer's Viewpoint
- Targeting a Customer of One - Adding Value "Beyond the Box"
- Aligning Complementary Strengths for Success
- Flipping the Demand/Supply Equation - Playing Judo with the Competition
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