Dell Spells Success in China

The Chinese government's decision to open the country's PC market to foreign companies in the late-1990s (to earn foreign currency through exports) led to this growth. The government also worked towards furthering the growth of the PC business by promoting the use of computers and computerizing state-owned enterprises. In addition, the government lowered tariffs on the industry, thus reducing prices of PCs and fuelling growth. Many analysts believed that the growth in this market was also indirectly related to the country's one child policy and the education system. Most Chinese parents reportedly bought PCs for their children. Due to all the above factors, China's PC market, which was $1 billion (sales) in 1990, increased almost ten times by 1998...

According to Mort Topfer (Topfer), Vice Chairman, Dell, this facility would help the company move closer to Chinese customers. Topfer also observed that the CCC was 'the single largest investment in the region for Dell since the opening of our Asia Pacific Customer Center.' Dell initially focused on the corporate market, which included large and medium businesses, government institutions, multinational companies, and home and small businesses which functioned in industries like telecommunications, banking, taxation, finance, and education/research. Dell expected that half of its sales in China would be made to multinational firms and the other half to government agencies, domestic enterprises, defense organizations and telecommunications authorities...