Business Model for Emerging markets
100
points posted to Dell by faraz
05/02/07
Traditionally, Dell has struggled with its direct model in most emerging markets. This is not because direct model cannot work there but rather because the direct model has to be executed in a different way, as compared to mature or developed markets.
The following business idea revolves around capitalizing on strengths of local PC brands that have emerged in most emerging markets. These local PC brands generally are volume leaders in their respective markets, and have evolved in very much the same manner how Dell did throughout 90s.
If Dell’s strength of (a) superior product (b) affordable prices and (c) efficient supply chain management can be combined with a Local OEM’s strength of (a) local market knowledge (b) ability to efficiently deploy PCs and (c) bargaining leverage with local institutional customers, then it will create an ‘almost perfect’ partnership. This way, both partners can offset each others weaknesses and combine strengths to create unmatched synergies. Such a Joint Venture could be in the form of an equity partnership or simply a technological collaboration. In either case, the idea is to synergize each others strengths for mutual interest.
If this idea sounds worth exploring then I can perhaps elaborate on why this business model is bound to work, and also a detail plan on how to make it work.
Best Regards,
Faraz S.
100
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