Dell's East fulcrum

Middle of the road, hair started graying Texan Michael Dell head has no aura. 25 years ago, Dell was still in college studying the efficiency of the invention of the computer-driven direct sales model, and established a computer company named after himself � these are no match for the transformation of the challenges facing it again: change a single direct sales model, can not dive deep measurement of sales channels; introducing more extensive product line to meet the aesthetic fatigue of computer buyers; get rid of dependence on computer products, as rival Hewlett-Packard, Oracle and Cisco's full range of IT service providers � �

Michael Dell's commitment to all this. From 4 years ago, became CEO, to re-start, he is in "denial" of their own history farther and farther down the road (please Gemag.com.cn Search "Dell against Dell," a text.) Get rid of a burden in the history and limitations of their own, while Dell also seeking another "leave" the road � in the birth of the cowboy culture, has the birth of Texas Instruments, Compaq and EDS IT service providers outside of Texas , looking to settle down in the "second headquarters."

Undertake this mission, not 1,000 km outside the cradle of the global science and technology in Silicon Valley, but in China, 12,000 km away. In China's southeast coast and the western city of Chengdu, Xiamen, Dell's restructuring process will achieve the most critical salvation.

Dell's fiscal 2011 earnings in Q2 (August-October 2010) showed a substantial year on year revenue from China grew by 52%, so sit tight in China, Dell is the second largest market outside the United States. Its market share has recently been pulled to 9% in one fell swoop, to the historical peak catch up with Hewlett-Packard jumped the country, second only to Lenovo. The industry is generally believed that Hewlett-Packard in 2010, "3.15 quality gates" to Dell as the beneficiaries, but also the Chinese PC market emerged almost solidified rare seating adjustments.

"The opportunities in China, and our investment in China, we feel very optimistic." Michael Dell in Texas to attend the "Year of My Success," Forum on "Global Entrepreneur" said. Dell 2010 in the whole world needs to benefit from recovery in the enterprise market return to growth in the context of performance, HP in China "losing ground" to win over Dell also has this "comeback game" as well.

"The next 10 years, I believe that Dell's business scale in western China, Dell is likely to grow to today's business in China, such a large scale." Dell Vice Chairman Clark on "Global Entrepreneur" said.

For most multinational companies who made battery such as dell Inspiron 1000 battery, dell Inspiron 2200 battery, dell Latitude LS battery, China's western market is flowing milk and honey "promised land." Of the PC industry, consulting analyst firm IDC predicting that the demand for Western products on the PC in 2014, an annual growth rate of 21% � it is no wonder that giants such as HP and Acer are invariably competing invest and build factories in western China.

And Michael Dell will go to inspection, "Dell's flagship center in Chengdu," invest and build factories for more than a competitor's simple logic. It will not only have "West Factory", also opened in the local sales and business service centers, to more directly face the customer � whether individual consumers, large enterprises and emerging SMEs.

In addition to outside Chengdu, Xiamen, Dell has built China's first "flagship center." In addition to covering the southeast coastal cities, especially small and medium business sales and marketing functions, it also started the production of computers continued to Japan, South Korea and Taiwan suppliers, Dell makes it an important hub in the Asia Pacific region. Huang Ling, vice mayor of Xiamen, stressed: Dell's Xiamen city government has given the greatest support, including stable production environment and the convenient and efficient "clearance" environment. 2020, Dell facilities in China, employment, research and development and procurement supplier will invest 100 billion U.S. dollars in total � it will contribute 50 billion U.S. dollars of Chinese GDP and create two million jobs.

The focus of intangible investment is in the business tilt. In recent years, quite a lot of Dell's server business development effort and effectiveness, and checks and balances of the Hewlett-Packard and other rivals. Known is that China is Dell's first outside the United States to provide data center market. It began as a large customer demand for tailor-made servers and solutions. China's largest Internet companies � Tencent and Baidu have a Dell server customers, they are crazy geometric growth of the vast amounts of data requires sustained commitment and support of server resources.Currently Dell's server market in China accounted for 23% of the market, ranking second, third storage business, with 10% market share.

Experimental front

In the past, Dell's direct sales model is the key to success, and now come to rely on channels of distribution patterns, consumer and SME market, which obviously is a bet. Of course, the Chinese consumer and SME markets in the more mature experience.

Yang Chao, president of Dell Greater China, "Global Entrepreneur" introduced in Dell's global channel model in the four-year transition, China is walking quite fast, "At present, China is Dell's best performance in all regions of the world the use of channels to market. "

This means that China has become Dell's "hybrid test" in the forefront of experimental field. Currently includes the United States, Suning, and other large integrated chain stores have already seen Dell 3C figure, coupled with the existing computer retail channel, Dell is now the number of stores directly to consumers nearly ten thousand.

Yang Chao stressed that Dell sales channels established distributors and dealers are not found on it, involving more background work, "In simple terms, is a process of process reengineering." Yang Chao said. Distribution is not well versed in the rules of the game, Dell channels, the slow pace of delivery, resulting in dealers selling Dell's products in general feel very troublesome. After several years of recycling processes, the delivery speed has been significantly accelerated.

The performance figures may be more reference value: According to data from market research firm IDC: Dell consumer notebook market share in China in 2010 reached 14% in Q3, business notebooks were up 9%, are ranked market second level � particularly in the consumer notebook market to grow rapidly, apparently due to the process and distribution system for experimental success.

It is noteworthy that, Dell Small Business How to HP from the third position behind the upward to achieve in China's "home run" � in fact, Dell's performance of SMEs in China have been remarkable enough: the 2010 fiscal year results showed Dell's global small and medium business growth of 10%, while the explosive growth in China is to achieve 81%.

Dell Greater China president Yang Chao said: SMEs as clients and general consumers, like to purchase products in stores, so the future Dell will launch a commercial storefront. The most important is to establish small and medium enterprises "model." Dell is currently the world for SMEs launched the "Year of My Success" marketing campaign to more direct impact on small and medium-founder and business leaders, making it Dell's business PC products, fans � and the French in India, China Dell has become the third focusing on cultivating locked "SME opinion leaders" in the market.