Expansion of DELL
Introduction to Dell and its Expansion:
Expansion is one of the most relevant key stone to enhance the overall boundary of the business and attract more and more customers globally. Companies operating internationally are also able to sustain in the market place for longer period of time and gain competitive advantage in the field of competition or challenge. Moreover, the following study would elaborate about the steps required to become Multinational Corporation by examining the operations of Dell in an appropriate manner. Thus, the study also highlights the parameters or the factors holds significant influence towards the expansion of the organization towards Malaysia and point out the respective entry modes to implement such expansion. Thus, the enterprise expanded into Malaysia in 90’s and soon become one of the pioneers of computer system provided in Malaysia. Further, the offices of the enterprise are located towards the rich locations of Malaysia to attract customer from all over the globe.
Assessment of operations and products:
Dell was established in 1944 by Michael Dell and become the pioneer of computer hardware and software sector or industry. The services of the organization are delivered worldwide and attract more and more customers all around of the globe, because of the quality of the product and after sales support from the respective executives (Soman, D. and N-Marandi, S. 2010). Further, the headquarters of the enterprise is located in Round Rock, Texas from where all the major operations of the organization are controlled and manage by the respective professionals in an appropriate manner. Now, considering the employment level of the enterprise, more than 100000 employees are currently assisting the organization to perform the respective services and gain more and more customer satisfaction in the market place. The organization is putting immense pressure to the new players fighting in the same industry to exist because of its productive strategic management policies and creativity of the respective professionals and employees while performing the respective activities (Soman, D. and N-Marandi, S. 2010). The enterprise sells the respective computer and related products through online and offline promotions in Malaysia so to grab the maximum benefits and enhance the level of customer satisfaction. Further, more than 10000 employees are activated towards performing the activities of the enterprise in Malaysia so to provide full support to the customers and create a bond with them.
The above mentioned privately function multinational corporation has positive goodwill all around the globe which has been built over the years by distributing long lasting product and performing the respective operational services in an appropriate manner. Until 2014, the company holds the 51th position under the Fortune 500 list which itself is a big example of the credibility and creativity the organization use to perform the respective operations. Moreover, a detailed list of the products sold or retail by the organization is mentioned below (Mohd Kamal, K. 2010). Thus, after expanding into Malaysia, the enterprise performed various types of researches and survey to get an idea about the preference of the customers and further perform accordingly to become one of the giant organizations of Malaysia.
Personal computers, laptops, servers, data storage devices, and other software and hardware are the premium rated products which attract the customers from all over the globe and enhance the revenue and overall surplus of the enterprise in an appropriate manner. Further, the enterprise also sale cameras, mp3 players manufactured by other organization by using the immense goodwill and strength of the enterprise existing in the market place. The organization was considered as the third largest PC vendor of the globe followed by HP and Lenovo. The main reason behind the enhanced or improving performance of the enterprise is its ability to adopt latest or modern technology and expand to as many countries as possible (Mohd Kamal, K. 2010). By expanding into different countries, the enterprise learn about the overall demands and wants of the customers and further work on the same to enhance the performance of each department in particular and organization as a whole. Linking the same, currently the enterprise sale the entire computer related products in Malaysia and keen to introduce new technological products considering the demands and wants of the customer living in Malaysia.
Considering the product sold by the enterprise, in 2002, the enterprise started dealing in televisions, printers, digital audio players to attract youth which holds significant percentage of the market place and provide tough fight to the respective rivals running in the same industry and targeting same customers (Martins Gonçalves, H. and Sampaio, P. 2012). Now, apart from United States, the products of the organization are also available in different other countries such as India, Malaysia and many more which further contributed towards giving the title of multinational corporation to the enterprise in the market place. All these expansion becomes very much profitable for the enterprise as a whole which allows the organization to attract more and more customers and retain them for longer period of time. As mentioned earlier, the enterprise expanded into Malaysia in 90’s by opening a warehouse and within some years become the leading organization in the same field with productive thinking and appropriate execution.
Talking about the peak period of the enterprise, then time span of 1990’s and 2000’s the organization started influencing the operational scale of other big rivals and enjoyed a huge growth and enhanced market share which further reduce the performance and credibility of companies like Compaq, IBM etc. Elaborating more about the same, in 1990’s the enterprise started selling servers along with computers which attracts huge number of corporate and other firms and enhance the overall revenue and surplus of the enterprise in the market place (Martins Gonçalves, H. and Sampaio, P. 2012). However, it is not to be mentioned that the performance and position of the enterprise in the current period is not appropriate due to unproductive strategic management and lack of creativity to hold or retain customers. Thus, position of the enterprise in Malaysia is very much appropriate and productive due to strong hold of customers in the market place and better creativity with the technologies available.
Thus, Dell can be considered as one of the most powerful organization till 2014 which hit the market with innovative idea and powerful professionals and soon become the pioneer of the same by diluting the risks or uncertainties arising from significant sources and creating new ways or methods to attract more and more customers in the market place. Moreover, talking about the performance of the enterprise in Malaysia, then the same is enhancing year after year with more customers and employees, the organization became one of the leading computer service providers in Malaysia.
Assessment of factors affecting the business in different ways:
Apart from expansion from many countries, expansion towards Malaysia is one of the most relevant and important step for the enterprise which further provides many financial and non-financial benefits to the enterprise in the market place (Leftwich, L., Leftwich, J., Moore, N. and Roll, C. 2014). Linking the same, since expansion attract lot of activities such as selection of geographical location and consideration of all the environmental factors, it is necessary for the respective professionals and employees to undergo such factors and enhance the overall performance and credibility of the enterprise in the market place. Thus, following three factors holds significant influence for any multinational corporation to expand as it put huge amount of influence towards the operations of Dell both positively and negatively. Now, talking about the factor which affect the performance of the enterprise in Malaysia, then legislative factors holds significant importance and relevance. It has been observed that the rules and regulations of Malaysia is dynamic in nature as a result of which the entire performance of the enterprise in Malaysia gets affected.
It has been observed that many Malaysia based organization were force to shut down due to inappropriate selection of geographical location and lack of customers purchasing the products of the enterprise or availing the services of the enterprise. It is not to be mentioned that selection of geographical location is one of the key stone upon which the success and performance of the enterprise would be measured which further either enhance the performance of the enterprise or reduce the credibility and creativity of the same (Leftwich, L., Leftwich, J., Moore, N. and Roll, C. 2014). Moreover, geographical location should be review in terms of population of customers, safety of the locations, overall status in the economy etc so to attract the customers for all the positive reasons.
Linking the same, while expanding to Malaysia, the overall management team is divided into different departments such as separate department for location, legal factors etc, so to ensure appropriate performance and dissolution of different risks or uncertainties. Now, after considering the performance Dell in Malaysia, it is clearly evident that geographical location has affected the organization in a positive manner by enhancing the level of customers and that of surplus of each financial year. Further, e-commerce also enables the enterprise to provide facilities like home delivery and satisfy the customers on personal level. Moreover, with the selection of rich places in Malaysia, geographical factors came in favor of the enterprise and put direct impact towards performance and credibility.
Considering the restriction sanctioned by the Government towards importing and exporting the items and other materials, it is not to be mentioned that majority of the retail enterprise running in more than one country is facing issues and problems (Johnsen, T., Howard, M. and Miemczyk, J. 2014). Legal factors use to cover the overall operational activities and the parameters of each department to a limited area. Further, it has been observed that many retail organizations were force to shut down or experiencing different critical situations such as cash crunch and liquidity because of frequent changes towards legal factors and lack of support from the Government of the respective country.
Linking the same, Dell Incorporation, also have the same kind of experience as that of other organizations mentioned above. Since the head quarters of the enterprise is situated in United Kingdom, the organization use to import and export the respective materials for performing the respective operations, but later on was badly affected due to changes towards legal factors by the Government. The enterprise struggles a lot to comply with the legal factors in an appropriate way and perform the respective operations and failed miserably to enhance the overall scale of the operation in a rapid manner (Johnsen, T., Howard, M. and Miemczyk, J. 2014). Moreover, as mentioned above, legal factors of Malaysia does not help the enterprise in any way, rather constructed several other problems and issues while performing the respective operation or fulfilling the aligned obligations.
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Since economic performance of different countries provides an overall view about the overall situation and standard of the business and highlight the respective opportunities and threats, respective enterprises have to experience while performing the respective operations and incorporating in the market place. From last few years, the economic performance of Malaysia were enhanced which further provides favorable advantage to the enterprise to exist in the market place in an appropriate manner and attract more and more customers from different locations (Hines, T. 2014).
Since, the economic performance of the country was good, it enables the professionals of Dell to perform the respective activities in an appropriate manner and properly settle down in the market place. Further, favorable economy also notch up the overall performance and position of the enterprise in the market place by highlight the respective business opportunities and pointing out the path to follow for fulfilling the respective financial and non-financial vision and mission (Hines, T. 2014). Moreover, both geographic and economic factor were positively affect the above mentioned enterprise, while the legal factors build some pillars to overcome while performing the operations. Since Malaysia comes under developed country, it is not to be mentioned that economic performance of the same were productive which further assist the organization while settling down and satisfy the customers of Malaysia.
Assessment of entry mode selection and rationales of the organization:
Even though there are many ways of expansion existing in the current scenario, it is necessary and relevant for the organization to expand through the most productive and profitable way to incorporate in the new market place in an appropriate way. Further, entry mode of expansion is one of the major reasons behind attracting customers and improving the overall performance and credibility (Ansett, B. and McManamy, J. 2010). Linking the same, the entry mode selected by Dell organization to incorporate into the market place of Malaysia was establishing a factory to enhance the financial strength of the enterprise by reducing the different types of duties prevailing in import and export transaction and then sell the respective products and services to the customers.
Since Malaysia also holds significant market share of Dell in the current scenario, the organization instead of going into partnership with different enterprise regarding the purchase and distribution of products, establish a warehouse and transferred the trendy products as per the demand and wants of the customers. Further, the organization invested huge amount of capital regarding the warehousing of the products so to maintain adequate balance between demand and supply and enhance the overall satisfaction level of the customers in the market place. Apart from Malaysia, Dell implements same method of expansion towards India as well and now more than 50% of the market growth is coming from the same source for the organization (Ansett, B. and McManamy, J. 2010). The organization always believes in brand loyalty and become successful in implementing the same towards many countries around the world.
Customers of both Malaysia and India are very much tech freak which further result in enhanced revenue of the enterprise, as majority of the products of the organization are upgraded with latest technology and provides maximum benefit to the customers. Further, pricing of the organization was also very much adequate as a result of which the entire credibility and creativity of the enterprise were happily welcomed by the customers and other individuals resulting in expansion of revenue and overall surplus (Retail industry 2013). Thus, the overall expansion of Dell towards Malaysia proved very much profitable to the enterprise in the market place through the enhancement of customers and that of revenue in each financial year. Moreover, the above mentioned entry mode selected by the enterprise to incorporate in the market place of Malaysia were positively accepted by the customers of the country which further result in the upward performance and position of the same.
Now, talking about the rationales and the justification of the above mentioned entry mode, than one must pay attention to the following factors:
Huge market scope:
As mentioned above, since the economy of the country were favorable and market conditions were adequate, the management perception of opening one own warehouse seems justifiable and appropriate. Under such market conditions, organization should satisfy the demands and wants of the customers on personal level to retain them for longer period of time. Further, it is not to be mentioned that the nature of the market place is dynamic in nature and keeps on changing, with the help of warehouse and storage of millions of units, it is easily possible for the enterprise to perform as per the demand of the environment and keep on satisfying the expectations of the customers (Retail industry 2013). Moreover, since the customers of Malaysia are very much addicted towards the technological products or items, it helps the enterprise to incorporate successfully and become the pioneer of the industry or sector.
No giant rivals:
Apart from favorable market conditions, Dell was also supported by the lack of companies providing computer software and hardware companies as it seems more achievable to become the pioneer of the industry. With no giant and large companies in the same sector, decision or judgment of opening own warehousing and brand in the market place is fully correct and appropriate. Through this way, the enterprise started attracting bulk of customers with products having latest technology benefits and other features so to expand both internally and externally in an appropriate manner and satisfy the precious buyers and other customers on personal level (Brody, D. 2013). Thus, with high economic standards and no giant organization, Malaysia become one of the profitable locations for the enterprise which further expanded the boundaries of the organization in an appropriate or productive manner.
Reach to as many customers:
By enhancing the level of customers, each and every organization would be able to sustain in the market place for longer period of time and become the pioneer of the industry in an appropriate manner. Linking the same, since Malaysia attracting the management team of Dell for all the positive reasons, the enterprise conclude to enhancing the boundary of reaching customers and incorporate in the new market place with lots of productive products and customer’s satisfaction techniques. Thus, considering the performance of the enterprise till 2014, the decision, or judgment of selecting the above mentioned expansion technique is appropriate and proper (Brody, D. 2013).
Assessment of standardization of international marketing mix by organization:
Marketing mix holds significant importance towards the performance and position of each particular product and organization as a whole. Considering the pressure of the modern era, it is necessary and relevant for the professionals working under different retail organization to have immense knowledge about the each marketing mix segment and implement the same in an appropriate manner towards the operation of the enterprise (Go, F. and Pine, R. 2015). Linking the same, the international marketing mix implemented by the management and other professionals of Dell towards launching computers and servers to Malaysia is mentioned below:
Selling untrendy products or services would certainly reduce the overall performance and credibility of the enterprise in the market place. Further, product is the first international marketing mix segment which acquires the attention of the professionals of Dell, to expand the boundaries of the enterprise in an appropriate manner and expand towards countries which are productive and profitable from enterprises point of view. Linking the same, after reviewing many countries in terms of productivity and profitability, the enterprise seek Malaysia, because of its favorable economic condition and attitude of customers towards computer hardware and software products or services (Go, F. and Pine, R. 2015). Thus, by paying attention towards the product marketing mix area, professionals and other employees working under the same enhance the overall credibility and reaching power of the enterprise in an appropriate way. Moreover, customers of Malaysia were highly need of technological products and Dell enterprise fulfill the demand and expectation of the same by launching productive products at reasonable price.
Expanding into new country is not easy in this competitive world, which force the organization pay huge amount of attention towards the promotion marketing mix segment, and the case of Dell while launching the personal computers in Malaysia is no different. In order to aware more and more customers, the enterprise invested good amount of capital towards promoting the respective products in different mediums such as newspaper, digital media, etc. Further, the enterprise also calls several meetings regarding the highlight of the advertisement and the caption for the same, so to attract the customers rapidly and enhance the overall performance in the market place (Hoque, K. 2010). Moreover, at the time of manufacturing server, the enterprises were stronger in the promotion area due to its enhanced goodwill and faith in the minds of the customers.
Price marketing mix is the most sensitive among all which either enhance the overall performance of the enterprise or put an end to it in the market place. Further, at the time of launching computers, servers and other network switches, the enterprise keep the price of all the products very low in Malaysia was to attract customers and fulfill the vision of gaining their trust and faith. Apart from manufacturing cost of the products and other duties imposed on the same, the enterprise charged very minimal rate of surplus or profit to provide more satisfaction to the respective customers of Malaysia and informing more and more customers about the presence of the enterprise in the market place and launch of different products and services. Thus, it is not to be mentioned that the enterprise does understand the importance of price marketing mix and implement the same in an appropriate manner to become the pioneer of the industry (Hoque, K. 2010). Thus, productive promotion in Malaysia, result in enhance performance and credibility of Dell enterprise internationally.
As mentioned above, selection of geographical location is very much necessary and holds equivalent importance and necessity of consideration as the above mentioned marketing mix segments (Soman, D. and N-Marandi, S. 2010). With inappropriate places, it would become very much problematic for the enterprise to deliver the right product or service to the right person at the right time as a result of which the entire performance of the enterprise would fall in the market place. Thus, the enterprise paid huge amount of attention towards selecting the place of Malaysia for attracting the respective customers and enhancing the respective performances of each department in particular and organization as a whole (Mohd Kamal, K. 2010).
Moreover, in order to maintain proper balance in the distribution strategy and to promote the personal computers and other servers in an appropriate way, professionals and other managers of the enterprise reviewed many places or locations of Malaysia and selected the one with both financial and non-financial benefits and advantages (Mohd Kamal, K. 2010).
The above study highlights the benefits and the problems experienced by organization expanding into Malaysia and becoming Multinational Corporation in the market place. Further, study summarizes the productive performance of Dell Incorporation in the market place in the field of computer hardware and software products or services (Martins Gonçalves, H. and Sampaio, P. 2012). The enterprise is highly efficient in attracting the customers of Malaysia however need some re-design of business objectives and vision statements to again gain the accuracy and confidence. Moreover, the method of expanding into new country through the establishment of warehousing and considering each international marketing mix segment is the only reason behind the enhanced performed witness during the period of 1990’s to 2000’s (Leftwich, L., Leftwich, J., Moore, N. and Roll, C. 2014).
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