Dec 22 2009
What Strategy Can Dell Use To Defend Its Competitive Advantage In China?
We are having case study in our management class so if u can please help me. The question is : Chinese firms have been known for their effective follower strategies – they can copy Dell’s direct model. What strategy can Dell use to defend its competitive advantage in China?
Thank you!
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One Response to “What Strategy Can Dell Use To Defend Its Competitive Advantage In China?”
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The Chinese market is extremely price sensitive, and COMPUTERS have become a commodity business, as Lenovo’s purchase of IBM’s PC biz demonstrates. Dell’s weak competences for innovation make it difficult for Chinese competition, so it is pretty much left with a penetration strategy- where it would focus on one particular niche or market segment in an attempt to create a beach head for further product deployments in the larger Chinese computer market.
I would think that it would do what it did successfully in India, which was agree to establish assembly plants or customer service centers in China in return for preferential access to some of the markets entrenched by Chinese firms. Dell can do this thanks to its size.