What should Dell do regarding international strategy?
What will be an ideal response?
Dell needs to figure out its international market strategy. Should it plan to go direct on a global basis (standardized approach based on the Direct Model) or, should it allow the customized approach to continue?
Reasons to STANDARDIZE
• Direct Model is Dell’s competitive advantage—in order to be successful, Dell needs to use it globally.
• Using a different approach by market can be a nightmare to manage as Dell gets bigger over time.
Reasons to CUSTOMIZE
• Look at the operating income in case Table E. Dell made more money in Europe in 1994 than in the United States, even though European sales were about a third of U.S. sales. It is a successful model right now; don’t tinker with it.
• Infrastructure might not exist in foreign markets for direct sales, so there is no option.
• Flexibility is important to support diverse markets.
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