Dell case study.

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Introduction In 1984, after generating $80,000 revenue per month from upgrading and selling computers out of his dorm room, Michael Dell dropped out of the University of Texas and founded Dell Computer Corporation. The upstart company was pitted against established industry giants such as IBM, Compaq, and Hewlett Packard; but by use of ingenious strategy and revolutionary business models Dell thrived and grew every year. Now they are on top of the US PC market and competitors …

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…get into Chinese market Dell should choose joint-venture because of government regulation to the distribution channel. Additionally they should know each country's culture, because every country has different culture. We recommend that Dell would have global strategy, because Dell focused on low price strategy, and keep direct distribution channel, because that is Dell's most sustainable competitive advantage. Figure 1: Distribution Model Example Competitors Distribution Model: 8-12% Price Markup 4-5 Weeks in Distribution Channel Dell's Direct Model: