DELL General Environment

9 Pages 2231 Words

General Environment

Global Opportunities/Threats:
• Due to the nature of the case, the global issues have been covered throughout the other five aspects of the general environment. Since our case deals with the globalization of China, these particular areas are directly discussed in other opportunities and threats

Economic Opportunities:

Economic Threats:
• Due to decline in Asian currencies, the sale of PC’s will be threatened. This decline could be foreshadowing an impending recession or economic slump. This possible economic condition could lead to decreased consumer confidence. (4)
• The price of a personal computer in China is equal to approximately two years of a person’s savings, making purchasing such an item extremely difficult for many Chinese consumers. (1)

Demographic Opportunities:
• The population of China is about 1,262,000,000 people, 20 percent of the world's population. Due to its size, this vast number of people presents a promising prospective market
• The number of Internet users in China in 1998 was 2.1 million and jumped to 8.9 million by the end of 1999. It is projected that there will be 15 million Chinese Internet users by 2001.

Demographic Threats:
• “New companies doing business in China are warned about the difficulty of getting accurate information on the going market rates for salaries”(15)

Socio-cultural Opportunities:
• The fact that the Chinese are “tech-savvy and straightforward” is beneficial to Dell because it does not have a strong service network. (3)
• 20% of China’s population is a product of higher education from well-respected universities. Many consumers may currently be college students who need computers, while those who have graduated will be within a higher income bracket or hold positions in which a personal computer at home is advantageous.
• In 1996, PC vendors sold 2.1 million desktop PCs, notebooks, and servers...