DELL project

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Group #4

Dell Corporation in BrazilDell Corporation in Brazil

LOGOOutlineOutline

•About Brazil

•About DELL

•SWOT

•Preconditions of entering Brazil

•DELL strategic position

•PESTEL analysis

•Key Success Factors

•DELL's sub-branding

•Recommendations

LOGOAbout Brazil About Brazil

Largest population in Latin America – 180 mln inhabitants

Good economy conditions

Mercosur custom union with other countries of Latin America (duty-free access to all of the members of union)

Exchange rate R$/US$ is increasing (appreciation of R$)

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By year 2000 Brazilian economy is growing rapidly

Production growth increased by 11,2%, while predicted rate was only 6,8%

Export increased by 13.8% ($8.62 bln.)

Import increased by 18.6% ($9.02 bln.)

About Brazil About Brazil

LOGOBrazilian PC MarketBrazilian PC Market

Main segments in PC market:

Home

Small business

Government

Commercial

LOGOGray Market and FirmsGray Market and Firms Imported computers were dismantled and re-assembled receiving a local brand

and sold at dramatically low prices

Imported parts without duties

Workers under table

Frequent infringement on copyrights

No sales taxes

Not required to invest in government programs

LOGODELL

Founded in 1984 by Michael Dell

Products:

1. Servers, storages and networking2. Printing and imaging3. Computers4. Electronics and accessories5. Enterprise services6. Customer services

DELL's concept is that by selling computer systems directly to customers will help to understand their needs better

Strategy contains direct customers model with new distribution channels

LOGODELL Development

Direct model (1984)

Global expansion (1987)

Mobile computing (1989)

Evolve of desktop (1991)

Servers and storages (1994)

Revolution in the customer experience (1996)

Customer-driven enterprise innovation (1997)

Leads the industry (2000)

Community involvement and environmental responsibility (2003)

LOGOCustomer-Driven Innovation

Listen=> Solve=> Impact

DELL gathers requirements directly through customer interactions daily, organized events, social media venues, and customer panels, which gives a uniquely broad perspective on the computing landscape.

The mission is to deliver innovative and cost-effective solutions that meet today's real-life customer challenges and work in existing environments and with other products.

Dell is uniquely positioned to impact industry trends

LOGOFACTS about DELL

Every Fortune 100 company does business with Dell.

DELL is the #1 PC provider in the U.S. and #2 worldwide.

About 140,000 systems shipped per day, on average – that’s more than one every second.

DELL more than 400 product awards in 2007.

DELL rank No. 34 among the Fortune 500

24 of the world’s top supercomputers run on Dell.

The top 6 Internet service companies run on Dell.

Its the first and only computer company offering free computer recycling to consumers worldwide.

LOGOSWOT AnalysisSWOT AnalysisSTRENGHTSSTRENGHTS WEAKNESSESWEAKNESSES

•Brand recognition •Cuts out the retailer •Lead supply chain; relatively cheap labor •Online capabilities to customize products

•Strong service reputation

•Huge range of products•Components from many suppliers from various countries •Inventory

OPPORTUNITIESOPPORTUNITIES THREATSTHREATS•Diversification strategy by introducing many new products•Making and selling low-cost, low-price computers•Change in management could lead the company into a new business model

•Competitive rivalry that exists in the PC market globally •New entrants to the market pose potential threats •Exposed to fluctuations in the World currency markets (i.e., changes in

exchange rates)

LOGOPreconditions for Entering BrazilPreconditions for Entering BrazilIncreasing demand from global clients

Long delivery times

High delivery costs

Customs regulations, tariffs and frequent strikes

Import tax rate for PC was 32% in 1998

LOGODell Strategic PositionDell Strategic Position

Threat of Threat of EntranceEntrance

RivalryRivalryBargainingBargaining

PowerPowerSuppliersSuppliers

BargainingBargainingPowerPowerBuyersBuyers

Threat of Threat of SubstituteSubstitute

MediumMedium

HighHigh LowLow HighHigh

LowLow

LOGOPESTEL AnalysisPESTEL AnalysisPolitical

Changes of government ideology (policy, etc) Influences of local municipal reform

Economic Largest population with GDP factor Well-developed manufacturing, services and other sectors

Social Dell Corp. has good international reputation

LOGOPESTEL AnalysisPESTEL AnalysisTechnological

Computer technology can be used as a tool in production sector of Brazil

Environmental El Dorado was located near universities and 4 metropolitan

centers Competition for inner city facilities (gray market)

Legislative Implemented reserve policy Legislation on product

LOGOKey Success FactorsKey Success Factors

Direct Marketing Model

Lower Cost Differentiation

Quality Product

Customization of Product

LOGODell’s Sub-BrandingDell’s Sub-BrandingSub-brands:

Can fit with local communities Must show something similar to the umbrella

brand Helps identify perception of the specific

audience

Dell need to sure that the brand connects: Emotional and rational aspect

LOGORecommendation and AlternativesRecommendation and Alternatives

DELL must be aware of the benefits they want to realize

Ensure the image customer satisfaction consumer awareness

DELL relies on reputation in the Brazil market award-winning service high-quality product

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THANK YOU FOR YOUR ATTENTION!You are welcome to ask questions