Questions Dell

1
a) What are dell’s FSA’s?
Initially one of Dell’s FSAs was its direct sales model. Also they had manufacturing plants all over the world to ensure low labor costs and a highly productive workforce.

b) What are the macro-level requirements for the direct sales model to be successful?

c) What are the major advantages of the direct model, compared with the traditional channel strategy in the computer business?

2)
a) How did Del treat its distributors in China during the re-entry into China in 1995?

b) Was there a vicious cycle of bounded reliability involved?

c) Who should be blamed for Dell’s initial failure?

3)
a) According to Arnold’s seven guidelines, discussed in Chapter 11, what mistakes did Dell make?

b) Given Dell’s FSAs and China’s location advantages in the late 1990s, why was the direct model successful?

c) What changed since?

4)
a) With the changing market situation after 2004, what new location bund FSAs should Dell develop to cater to retail buyers in China?

b) Or, alternatively, what complementary capabilities should dell expect from its distributors?

c) Can you provide an update on Dell’s distribution strategy in China, using materials available on the web?