DELL bets on Direct Sales in emerging markets-Target-> Critical Mass.
Paul-san
Here is a bit more detailed report on Dell strategy in emerging markets, India in particular. It seems like Dell's new hire Mr.Goh is going for the kill in Asia.
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Taking over Dell's Asia operations only recently after stints in Digital and Compaq, Mr. Goh has aggressive plans for the entire region. His immediate objectives include sustaining the growth in Asian markets at the current 70 per cent year-on- year average, well above the industry figure. Mr. Goh expects to take Dell into the top two positions in all the regions in Asia where they have direct operations and achieve significant growth in other Asian regions.
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Mr. Jimmy Yam, Managing Director, South Asia, Developing Markets Group, Dell Computer Asia, said: ''People said the same thing when we entered China - that our direct sales model won't succeed. But we proved them wrong and our business in China is doing extremely well.''
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Aggressive strategy for India
DELL Computer, to have a greater presence in the Indian market, plans to pump in between $5 and $10 millions besides looking at the option of upgrading its liaison office into a more direct operation office within the next year.
The plans include investment in human resource development, including beefing up its indirect sales channel through better and wider support partnerships.
Dell is expected to focus on working closely with its partners and major corporate customers in India. Also in the pipeline are many sales and support-linked incentives as well as promotional pricing on Dell products slated to hit the Indian markets soon.
Mr. Ron Goh was not very optimistic about the company using a mass market distributor to penetrate the lower end of the market.
''Nothing is impossible, but it is very improbable that we would enter into distribution agreements with partners like CHS Karma, Ingram Micro etc to reach out to the mass market,'' he said.
Immediate plans in India include targeting 100 per cent growth during 1999. Mr. Goh said Dell hoped to achieve critical mass in the Indian market shortly. ''This will put us in line with the other players in the Indian market and enable us to compete better and more aggressively.''
Dell has worked out a two-fold strategy to penetrate the Indian market. First, the company will work towards improving brand awareness and educate potential customers about Dell's strategy, business and its commitment to the market, including the customers. A series of seminars, workshops and conferences is planned to achieve this.
The second part of the strategy is to tackle the government sector. Mr. Goh said the company would compete aggressively in bulk government tenders as well as government departments like telecommunications, finance, customs, excise and defence.
To read the full report go to:-> hindubusinessline.com
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