DELL General Environment

9 Pages 2231 Words

in China, an increase of nearly 40 percent from the previous year, which shows that the Chinese computer market is thriving due to the increased interest in personal computers among Chinese consumers. (1)
• While customers used to be nervous about purchasing items over the Internet, they are now enthusiastic toward on-line buying and company interaction. (9)

Socio-cultural Threats:
• The Internet is not as prominent in China as it is in other countries and is ranked 8th for Internet usage worldwide. (3) This reflects Chinese attitudes toward the Internet and shows that they may be more negative than those in other parts of the world.
• The Asian customs place high value on personal relationships, making the Dell model of direct selling not as appealing. (3)
• Chinese are uncomfortable with credit card sales and the purchase of expensive products that they are unable to view firsthand. (3)
• Chinese factory workers are laden with idleness and corruptness and need to be reeducated. (3)
• The hierarchical nature of China makes it difficult to motivate workers to be independent. (5)

Technological Opportunities:
• In 1997, there were 57 million Internet users. At the end of 1998, the number of U.S. Internet users was around 70-80 million. In 1999, the number of U.S. Internet users was up to 90 million. (9)
• Total internet users from all countries around 150 million (9)
• Internet has opened up a variety of opportunities for retailers and marketers (9)
• In 1998, the Market Information Center (MIC) reported its prediction that by the year 2000, Mainland China’s annual PC production would reach 7.6 million, making it the third-largest in the world after the US and Japan. (1)
• Chinese cities are very modern, with excellent highway systems and reliable airports. This is beneficial for the industry in that these transportation innovations make shipping products to the consumer more efficient. PC m...