Mohan- Thanks for the article about Dell in Brazil..
Just as an add-on, one thing that often missing (or not emphasized enough, IMO) is the fact that PC's are relatively price inelastic demand items in 3rd world countries...ie., you don't see a sharp decline in demand if the price is $1500, or $1800, or $2200...people need computers, people want computers....it (always) look impossible to believe, when you look at the official statistics, that people "officially" making an average of $2000-4000 a year can afford a computer...but as we have extensively discussed on this thread, the "official" data overlooks a large amount of important factors which explain how this is possible..
Also, since Dell's focus in on corporations and 2nd time PC users...this makes Dell even more focused on those who can truly afford computers..
You would got a kick out of the elderly lady who, at last year's shareholders meeting, persistently asked TM and MD..."How can the Chinese afford a computer when the average person makes $xxxxx"...The humorous part came when she wouldn't accept MD and TM's immediate answer by saying "when my son (daughter?) lived in China..and...."
Had everyone chuckling...MD, in a his typical understated manner, replied, "Well, we usually do a pretty good job researching a market before we go in, and I feel confident that there will be large demand..." |
