Dell Marketing Model And On Market Transformation In China

With the economic miracle in china and global technologic rapid development over the last 30 years, information technology also has achieved the significant progress. During that period, many multinationals play an important role for their huge advantages on both manage and technology. After 30-year successive economic development, china has been the most potential market, and also features regional imbalance and complexity, which is so-called Chinese feature. Under this background, the article present some brief discussion about the challenge Dell company facing in China and possible solutions.Based on STP theory, this article's focus is how to make the smoothly strategy transition for Dell (china).We should know more details about Dell, before talking about its strategy transition. Dell is famous for the direct models which mainly include single point of accountability, most efficient way to customers, standardization, build to order, and low cost leaders. The major advantages of the direct model are segmentation, sale management, online selling and supply chain management. Through the annalist of direct model, the problem Dell involved is from the conflict between the supply and the demand. The direct model constrains the efficient supply of Dell for the consumer market, which also lead to the emergency of illegal channel called grey channel. In the short term, grey channel will boost the performance .However; it will cause the chaos of price system, and, wrong order record from the long run. Meanwhile, it will leave negative impact on company culture.Some clear market trends have emerged in the china pc market. The total units increase on the whole, but the growth rate is slowed down. Desktop will be replaced by notebook. Customer in the smaller cities and less-developed district has taken the biggest market place. All changes above, no matter what kind of, force Dell to face some challenges, such as missing the consumer market; purchasing model conflict; weak network infrastructure; distorted company culture and fierce competition.To keep the competitive edge and maintain the market share, Dell has no choice but to take the strategy transition in China. The new strategy will convert Dell form enterprise-based customer to the both consumer and enterprise customer. During the transition period, Dell should well leverage the advantages of direct model to make the transition successful.Some uncertain factors will influence the result of the transition. So, it's really hard to precisely depict the transition method. The article just delivers one perspective based on the STP theory for the reference.