Thursday, July 10, 2008

For Dell, it’s time to go in‘direct’!

After the exceptional success of its direct model, Dell now plans to alter its selling strategies

Give us a brief lowdown on Dell’s operations in India.


In the year 1996, Dell was incorporated as Dell Computer India Private Ltd. and opened sales and marketing office in Bangalore. In August 2000, we launched the Direct Business Model in India. Today, Dell’s most comprehensive presence in the world outside the United States is in India. This includes a local manufacturing unit at Sriperumbudur near Chennai.

How does Dell view the Indian market vis-à-vis other emerging economies?


India is the fastest growing major market for Dell worldwide. Dell has been among the fastest growing technology companies in India. The Indian PC market is experiencing tremendous growth across all form factors in the IT industry. The growth is fuelled by robust demand from the large enterprise, SMB and government. At Dell, we believe there is strong growth potential and opportunity, especially as India has one of the lowest PC penetration rates in the world. We hear that Dell is getting ready to sell through retailers. Is it because the direct selling model isn’t delivering the way you had anticipated?

Dell’s direct model has served it exceptionally well, facilitating its leadership position in the business segment. Dell’s evolving business strategy combines its revolutionary direct customer model with new distribution channels to reach additional customers and small businesses through retail partners and value-added re-sellers. This “Direct Plus” approach is to bring more technology to more people around the world via alternative sales channels while we grow our traditional, direct relationships with commercial customers. Some of these approaches are already underway in various parts of the world – such as our retail relationships with Wal-Mart in the United States, Carphone Warehouse in the United Kingdom and Bic in Japan. However, Dell is simultaneously looking to expand and diversify its channel strategy to provide customers with more choices, flexibility and of course, benefits of Dell India’s direct model.

Your USP is ‘direct contact’ with customers. How big are your back-end operations in India?

We have four customer contact centres in India. These centres are located in Bangalore, Hyderabad, Mohali and Gurgaon. Our customer contact centres in India service and support our customers from all over the world.

Our state-of-the-art global R&D Centre in Bangalore undertakes cutting-edge research and development on Dell’s next generations of network servers, data storage systems and software products. Over the years we have made cumulative investments of more than $150 million in our India research capabilities.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

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