International Business - International Market Case Study

International Business - International Market - Case Study ExampleIt leave alone investigate the current business strategies used by the company to conquer international commercializes, licensing and franchising, market strategies and self-will factors.dell Inc. is an Ameri mess computer hardw atomic number 18 company which is based in Texas, U.S. The company manufactures, supports, develops and sells a broad variety of products and table services including PCs, data storage devices, network switches, software, computer peripherals and so forth Dell Inc. is one of the biggest companies in the world but it has currently encountered a lot of competition from other players in the industry including IBM and HP. By the end of 2006, the company had an employee capacity of 78,700 throughout its branches all everyplace the world. The company is owned by Michael Dell who, in 1984 while being a university student, founded the company in his dorm room. The company is currently a wholly ow ned subsidiary of Dell Computer CorporationAfter deciding to enter oversees market a variety of options were open to the company. These options vary with cost, risk and the degree of control which can be exercised over them in terms of security. Dell Inc. uses the following two order actings of international marketing especially in just about countries, such as those in Europe where the countries have developed infrastructure, organized import duty regulations etc. But in developing countries where level of economy is low, the company uses the channelise method of exporting. exportation Exporting is the direct sale of domestically produced goods in another country and does not require that the goods be produced in the target country. An precedent of this kind of marketing is counter trade. Counter trade is the expansion of operations in markets where competition is less but currency based exchange is not possible (Hollensen, 2004).Direct method In this method, DELL Inc. may agre e to build a plant in a reliable country and either assembles or manufactures their products and then operates as a climb entity in the target country. An example of this method of trading is the barter trade. Direct methods have the following disadvantagesi. It is difficult to set price and service qualityii. Dumping may occur since it is not covered by GATTiii. Inconsistency in specifications and deliveryiv. musical note may not be of international standards becoming so costly to the customer and trader.Indirect method The method of marketing does not require that the company invests in production facilities in the country and therefore, it is cheaper. The entirely costs that will be incurred are the marketing, sway and government expenses. This kind of marketing require full corporation of the following players exporter which will be in this sense Dell Inc., importer in the target country, transport agents and the government trade officers. This is the marketing of goods pro duced in one country into another. In this case, there is no direct manufacturing in the intended country but significant investments in marketing are required. DELL Inc. can therefore manufacture their products in either Europe or Africa and export them directly to these countries. The advantages for this method are production is home based hence less risky, gives an opportunity to learn markets overseas, potential risks of operating abroad are minimized. The only disadvantage of this method is that the company is at the mercies of unscrupulous agents who make more increase than the company itself.Suitability of