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DELL General Environment

• 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

• 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)

• 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.


• There are really no direct substitute products because this world is very technically innovative and the computer electronics are the main force driving many businesses and home users.

• While customers used to be nervous about purchasing items over the Internet, they are now enthusiastic toward on-line buying and company interaction. (9)

• From a firm’s point of view, businesses are the largest buyers in the computer electronics industry. They purchase a large portion of this industry’s total output, so they have a powerful influence on the industry, but they cannot easily switch to another product without any significant costs.

Some topics in this essay:
Low Suppliers, Barriers Entry, Socio-cultural Opportunities, Socio-cultural Threats, Mainland China’s, Access Distribution, Industry Attractiveness, IBM Goals, Economic Threats, IBM Gateway, market share, internet users, 3 •, • chinese, threats •, industry attractive, manufacturing industry, switching costs, computer manufacturing, opportunities •, 3 • chinese, computer manufacturing industry, internet users china, industry attractive entrants, • chinese government,

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Approximate Word count = 2231
Approximate Pages = 9 (250 words per page double spaced)


  

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