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Dell – The cost of turning away from the Chinese market Among many American companies, Dell is eye-catching. Not so long ago, news spread about Dell's plans to transfer production lines and abandon Chinese chips. At the time, Dell largely ignored the comments and appeared to be quite tough. However, with the heavy blow given by the market, now Dell's senior management has finally spoken out, saying that there has never been a statement that the Dell ** chain has been transferred out of China. China is an important market for Dell, as market rumors that Dell is reducing the proportion of Chinese manufacturing and plans to ensure that all its products contain Chinese chips by 2027 have caused Chinese consumers to abandon Dell's personal computer products, which in turn has led to a sharp decline in its shipments. According to data provided by analysts, Dell's shipments in the Chinese market fell by % and 50% in the first three quarters of this year, respectively, which can be said to be an astonishing decline. With the decline of Dell in the Chinese market, Chinese companies' PCs and Apple quickly seized the market, and shipments rose rapidly. Dell also dropped from second to fourth place in China's PC market. Affected by Dell's sharp shipments in the Chinese market, Dell's shipments in the global market have also appeared.
The ** range reached 30% in the first quarter, 22% in the second and third quarters, and 14% in the third quarter, indicating that Dell's recession in the Chinese market has had a huge impact on it. Not only Dell's personal computers have declined in the Chinese market, but Dell's servers, storage systems and other products that Dell sees as a hope for transformation have also suffered heavy setbacks. Dell has fallen out of the top five in China's server market, and storage systems have been aggressively taken over by a Chinese technology company. Some analysts have even pointed out that Dell's storage system has slipped to third place, while the Chinese technology company's storage products have surpassed Dell to take second place. There are several reasons why all of Dell's products in the Chinese market have been hit. First of all, Dell's products are not irreplaceable. In the case that Chinese consumers and businesses have other options, they will of course give preference to other products. This led to a rapid decline in Dell's shipments in the Chinese market. As for the global market, the problem is that Dell is eager to shift production lines and abandon Chinese chips, resulting in product costs** and product process chaos. Over the years, Dell has been setting up a factory in Xiamen, China, to enjoy the dividends brought by Made in China.
In fact, other computer companies such as Hewlett-Packard also make a lot of their products in China, because they can provide low-cost and high-quality products. Although Dell faces many challenges in the Chinese market, it still maintains its focus on the Chinese market. Dell executives said they will continue to increase investment in China and expand the scale of production and the best chain in China. Dell understands that the Chinese market has great potential and opportunities, and only by actively responding to market changes and providing products and services that are more suitable for the needs of Chinese consumers can it achieve long-term success in the Chinese market. Despite its difficulties in the Chinese market, Dell is not the only foreign company facing challenges. In the context of globalization, enterprises must constantly adapt to changes in the market and keep pace with the times in order to remain invincible in the highly competitive market. For Dell, the setback in the Chinese market is a wake-up call that it must not be taken lightly and must continue to innovate and continuously improve the competitiveness of its products in order to win the favor of Chinese consumers. Lessons from Dell's recession: technology is not the only competitiveness, Dell is a world-renowned computer manufacturer, which once occupied a place in the market with its mature ** chain and high-quality products.
However, in recent years, Dell's market share has been declining, and it once faced serious competitive pressure. This is mainly due to the ripple effects brought about by the transfer strategy of its ** chain. Dell is trying to transfer production capacity in a short period of time in order to reduce production costs in China, but Vietnam, India and other markets have not yet formed a complete industrial chain, which makes it difficult for Dell to find alternative components in a short period of time, which in turn affects the competitiveness of many of Dell's products in the global market and is replaced by competitors. Due to Dell's rapid decline, Wu Dongmei, Dell's global vice president, said in an interview that Dell has never said anything about transferring the ** chain out of China, which are all rumors. We can see that the mistakes made by Dell in the **chain transfer strategy are obvious, which makes it easy for us to think: technical content is not the only competitiveness. Compared with the technical content, the ** chain of the product is obviously more important. A perfect chain can not only improve the quality and reliability of products, but also reduce production costs and improve the competitiveness of enterprises. For a low-tech enterprise like Dell, a stable ** chain is even more important than the technical content.
Therefore, Dell's lesson tells us that when formulating corporate strategy, we should not only pay attention to the technical content, but also pay attention to the construction of the first chain of products. In fact, the rapid decline of the market forced Dell to admit the reality of the need for a Chinese market and made in China. Among many companies in the United States, Intel, Nvidia, etc., which have a much higher technology content than Dell, will never say that they will abandon the Chinese market, and even because of the United States' restrictions on China's high-performance chips, they quickly customized chips for the Chinese market to ensure that they can obtain income from the Chinese market. These companies with higher technology content respect the Chinese market, and companies with lower technology content like Dell blatantly abandon the Chinese market is completely the way to death, and now Dell is obviously given a deep education by the market, and its executives have also recognized the reality, and hastened to show favor to Chinese consumers and strengthen cooperation with Chinese manufacturing. As Wu Dongmei said, Dell has never intended to give up on the Chinese market, which is also the key to Dell's future development.
As one of the largest markets in the world, the Chinese market has broad development prospects and huge potential, Dell must pay close attention to the changes in the Chinese market, strengthen cooperation with Chinese manufacturing, improve the quality and competitiveness of products, in order to be invincible in the global market. In short, Dell's recession lesson tells us that although technical content is important, it is not the only competitiveness, and the construction of the first chain of products is equally important. As a globally renowned company, Dell must carefully learn lessons and strengthen cooperation with the Chinese market and Made in China in order to re-establish itself in the global market.
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