Dell Sales Strategy

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DELL Sales Strategy The Problem In the U.S., Dell originally became a market leader through its online and direct made-to-order sales model. When the computer maker decided to enter India, however, it needed a change of strategy In the B.D. era -- Before Dell -- India's computer market was ruled by Hewlett-Packard and Chinese computer maker Lenovo. HP had arrived in 1989, when its only competition was IBM -- a business that was later acquired by Lenovo. It quickly established itself as the market leader by focusing on price and after-sales service, and its 2001 merger with Compaq added to its product range. Both HP and Lenovo had factories in India, and their products were available off the shelf through a vast retail network. More importantly, because dealers had huge inventory (the companies supplied machines whether there was demand or not), they offered customers hefty discounts. Sales rose. The Impact of the problem To buy a Dell in those days, Indian customers had to wait up to a month for delivery while the computers were manufactured in Dell's factory in Penang, Malaysia. Therefore Dell sold just 79,244 laptops and desktops in India in 2007, its first year of full-fledged Indian operations. In that same year, HP sold 1 million to Indian consumers. How Dell solved the problem Rajan Anandan, was sent to India from Dell in the U.S. in 2006 for rebuilding the sales model of Dell India. The India growth story was thus powered by a "billion dollar core team," which came together in the first six months after Anandan's relocation. The team consisted of people from rivals HP and IBM, and even Hindustan Unilever, Whirlpool of India, and Airtel India. Sundaresan, for instance, left Whirlpool to set up Dell's first India factory, in Sriperumbudur near the southern city of Chennai, which he got up and running in just eight months. The industry average for a plant

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