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Dell Marketing Case

Essay by   •  February 29, 2012  •  Case Study  •  404 Words (2 Pages)  •  1,030 Views

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5.1 Multinational companies (MNC)

A corporation that has its facilities and other assets in at least one country other than its home country; such companies have offices or factories in different countries and usually have a centralize head office where they coordinate global management. Very large multinationals have budgets that exceed those of many small countries. Nearly all major multinationals are American, Japanese or Western European, such as Nike, Coca-Cola, Dell, Toshiba, Honda and BMW.

5.2 Reasons for International Trade

5.2.1 Grow Business

When trading internationally the universe of potential clients and suppliers will increase significantly. Just imagine increasing the number of potential clients by 100% each time DELL start selling in a new country. In all likelihood, this will probably be much easier than trying to expand your market place in home country.

5.2.2 Diversify Risk

The idea that a business relies solely on one market and directs all its resources into a single currency may prove to be more risky than it may first seem. Just look at the number of unprecedented global disasters as financial meltdown, earthquakes and unrest in the Middle East over the last few years and the drastic impacts these have had on markers. Home market could contract or even disappear, but DELL business may be saved by the business it generates overseas.

5.2.3 Better Margins

As well as seeing increased sales, DELL may well enjoy better margins. Sterling which is currently weak may give you a head start when exporting. Pricing pressure could be less and it could also reduce seasonal market fluctuations.

5.2.4 Earlier Payments

When working with companies overseas, both DELL and DELL's customer will want to execute the transaction in the safest and most efficient manner possible. One of the many advantages when trading internationally is that overseas payers often pay upfront. This reduces payment risk and may well help your working capital.

5.2.5 Less Competition

The ability to stand out amongst competitors is a crucial factor in business. When there are fewer competitors, this task is made easier. Your business, which may be viewed as comparable to others in the UK, may, when placed in a larger and more diverse environment, turn out to be a unique product or service not to be missed. By making the product or service available to worldwide buyers, DELL instantly create another life line for the business by being in less competition and increasing the possibility of standing out. This will in turn boost sales potential and allow DELL business to flourish.

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