Word: delling
(lookup in dictionary)
(lookup stats)
Dates: during 2000-2009
Sort By: most recent first
(reverse)
...formula keeps Dell's prices low and works like Miracle-Gro in the West. But in China, relatively few people use the Internet and fewer still have credit cards, hindering e-commerce. Transportation networks are unreliable, complicating Dell's direct-to-doorstep delivery service. Critics also said the Chinese wouldn't buy machines without test-driving them first. "We're talking about people spending the equivalent of two months' salary on a computer," says Theodore Teo, an industry analyst at Nomura International. "They want to take the whole family to look at it in the showroom...
...however, Dell has muted the naysayers by tweaking its strategy where necessary. In Beijing, for example, the company's delivery drivers carry wireless debit-card machines so customers can pay when their computers arrive, a system that solves the credit-card problem. Today, Dell offers next-day delivery from its factory in Xiamen to 400 cities and towns. And Dell's China market share has grown from near zero in 1998 to 4.4%. That may not sound impressive, but Dell has eclipsed Compaq and is pressing IBM for the top foreign-brand position. In the lucrative segment for corporate server...
...strong reason for that, analysts say, is Dell's ability to undercut the competition's prices without sacrificing profit. By making machines only after receiving an order, Dell can keep inventory low and turn it over quickly. That reduces overhead and the risk of getting caught with unsold, out-of-date models. Conventional manufacturers, including Legend, build machines according to forecasts of market demand. If predictions are wrong, a lot of unsold hard-ware can pile up in the supply chain...
...Witness the carnage after the sharp, unexpected crash on corporate I.T. spending late in 2000: losses convinced IBM to all but abandon in-house PC manufacturing by farming assembly out to subcontractors. Hewlett-Packard and Compaq are trying to merge. Dell was hurt by the downturn, too. The company laid off 1,700 workers last year, its first redundancies ever. But it still managed to increase sales by 18.3% in 2001, showing a profit of $2.1 billion...
...advantages Dell enjoys over giants such as IBM could prove decisive against Legend as well. Founded in 1984 by 11 computer researchers from the Chinese Academy of Sciences, Legend has rapidly grown into Asia's largest PC maker by riding a boom in mainland computer sales. Although it manufactures in China, where labor costs are cheap, it lacks Dell's economies of scale. Legend's revenue last year was $3.5 billion, puny compared with Dell's $31.9 billion. Dell's 17.6% profit margin similarly dwarfs Legend...