Dell’s Dilemma in Brazil: Negotiating at the State Level
Dell’s Dilemma in Brazil: Negotiating at the State Level
Wednesday, October 3, 2012
Introduction Keith Maxwell is the Vice President in charge of Worldwide Operations, for Dell Computer Corporation. Dell Computer’s was founded in 1984 by Michael Dell in his University of Texas dorm room, and by 1999 the company grew to market over $98Billion. Dell was the second growing largest personal computer manufacturers, just behind Compaq in the growing PC industry. Dell attributed its success mostly to its revolutionary business approach, which was known as the Direct approach. Dell had eliminated the middleman completely, by selling and shipping their computer’s directly from their factories from all over the world.(1)
Problem Statement Should Dell stay with the original agreement they had in Rio Grande Do Sul, even though the Government has changed hands and the deal could potentially fall through, or should they look at the other opportunities they had in other States in Brazil that were offered to them?
Analysis (See Exhibit 1) Judging from the SWOT analysis, I believe that Dell in an excellent position. With our strength’s and opportunities placing us with a competitive edge in funds, personnel, marketing, experience, and low cost we will thrive and dominate any market we so choose to venture in. This case being, the market in Rio Grande do Sul, Brazil. The Opportunities for this State and us are tremendous, we will offer this State joint research and development projects with local universities that could exceed in the R$100 million or more. Our weakness’ are that we wish to proceed to quickly on projects, and the threats are the new government change in Rio Grande Do Sul that could
Wednesday, October 3, 2012
Introduction Keith Maxwell is the Vice President in charge of Worldwide Operations, for Dell Computer Corporation. Dell Computer’s was founded in 1984 by Michael Dell in his University of Texas dorm room, and by 1999 the company grew to market over $98Billion. Dell was the second growing largest personal computer manufacturers, just behind Compaq in the growing PC industry. Dell attributed its success mostly to its revolutionary business approach, which was known as the Direct approach. Dell had eliminated the middleman completely, by selling and shipping their computer’s directly from their factories from all over the world.(1)
Problem Statement Should Dell stay with the original agreement they had in Rio Grande Do Sul, even though the Government has changed hands and the deal could potentially fall through, or should they look at the other opportunities they had in other States in Brazil that were offered to them?
Analysis (See Exhibit 1) Judging from the SWOT analysis, I believe that Dell in an excellent position. With our strength’s and opportunities placing us with a competitive edge in funds, personnel, marketing, experience, and low cost we will thrive and dominate any market we so choose to venture in. This case being, the market in Rio Grande do Sul, Brazil. The Opportunities for this State and us are tremendous, we will offer this State joint research and development projects with local universities that could exceed in the R$100 million or more. Our weakness’ are that we wish to proceed to quickly on projects, and the threats are the new government change in Rio Grande Do Sul that could