Business ModelDell has managed to achieve considerable success in a short amount of time by following a direct “business to customer” model. By selling computers directly to customers, they were able to better understand their needs and provide effective solutions to meet them. Dell built PCs to order, so customers only got what they wanted. Dell's just-in-time inventory system allowed them to order only the parts required by customers, thus maintaining minimal inventories and benefiting from cost reductions which in turn were passed on to customers. Dell's extensive use of e-commerce has helped further reduce costs by reducing order and delivery times for customers and customization. There are three golden rules in Dell: disdain inventory, always listen to the customer and never sell indirectly. Key Issues China has been identified as a very promising market and Dell has set itself the goal of improving its position since seventh to second place in this PC market. However, Dell faces many challenges in this market. The Chinese government actively promotes the Chinese PC manufacturer "Legend" which has dominated the market; Internet penetration is relatively slow; software piracy is rampant; the competition is intense. Furthermore, there is strong competition for market share and Dell's competitors have started to imitate Dell's business model. Dell must determine how to change its strategy to succeed in the Chinese market. Alternatives and evaluation1. Open Dell Retail Stores Chinese people are uncomfortable purchasing high-priced products that cannot be viewed before purchasing. This is one of the reasons why Dell has invested in door-to-door sales. If Dell were to open retail... mid-paper... the option addresses customers' reluctance to make such a major purchase for a product brand that is not well established in China. This option will allow clients to transfer residual risk and implement a disciplined approach to technology rotation. I think for China, customers will be more likely to choose Dell products because it's somewhat of a "try before you buy" opportunity. There will not be such a large initial investment, plus they will be able to feel confident that the purchased technology will not become obsolete in the near future. I believe this option will help Dell establish a more recognized and stronger brand and allow Dell to establish long-term relationships with its customers. This option is in line with Dell's growth plan in China and will allow Dell to leverage its strengths to make it a successful strategy.