Dell has for long been one of the biggest players in the world market in the field of personal computers. Its direct business model which involves bypassing the traditional distribution channels as well as strong influence on customer service through social media made it the world number 1 in this segment by far till 2006. But first HP in 2006 and then Acer last year have resulted in the slide of US $ 53 billion organization to the third position. But then it’s not all bad news.
During the period it was going down internationally, it was growing by leaps and bounds in India.
So what is Dell’s achievement in India?
In 2010, Dell became the largest laptop as well as desktop seller in India crossing the likes of HP and Acer among others. Now that’s some achievement!
But how did Dell do it?
Every company setting up shop in India has discussed about the increasing disposable income, booming economy and increasingly brand conscious population of India. And Dell too seems to have captured the imagination of this population.
The first thing it did was to get the right talent and after getting them putting them in the right place. And the place was India. Today they have more than 23,000 out of the total of 96,000 employees in India. All the divisions of the organizations are represented in the country.
A manufacturing plant set up in Sriperumbudur, Chennai at a cost of US $30 million has proved to be one of the biggest backbones of Dell’s success. This has enabled them to not only decrease the cost of their products but also decrease the time between ordering and delivery.
Across the world, their business model of eliminating the middle men and selling directly to the customers has gained strong acceptance. If it’s Dell, people are used to ordering online and setting the features they want. But Dell realised that Indians are used to touching and feeling their products before buying them. And therefore they started retail stores and also direct selling model inside retail outlets.
A customer could customize his laptop or desktop then and there depending on his requirements. For tier II and III towns, Dell also started embracing channel partners.
Now that’s what you call a localized strategy which can really prove to be successful. For all companies coming to India and launching, this sure should be a case study to look at..