"Dell Case Analysis: A Globalization strategy- Aggregation, Adaptation and Arbitrage.YEARDell Case Analysis: A Globalizationstrategy- Aggregation, Adaptation andArbitrage.Written by:Submitted to:Date of submission:1 Dell Case Analysis: A Globalization strategy- Aggregation, Adaptation and Arbitrage.YEARContentsAbout Dell Computer: ................................................................................................................................... 3Dell’s distinctive policies for Adaptation, Aggregation and Arbitration: ...................................................... 3A. First and second most applied strategy for Adaptation: .................................................................. 3First most applied strategy: Selecting preferred locations: .................................................................. 3Second most applied strategy: Improved Logistics techniques: ........................................................... 4B. First and second most applied strategy for Aggregation: ................................................................. 4First most applied strategy: Lay off:...................................................................................................... 4Second most applied strategy: Direct Sales policy: .............................................................................. 5C. First and second most applied strategy for Arbitrage: ..................................................................... 5First most applied strategy: Contracted production: ........................................................................... 5Second most applied strategy: Outsourcing services: .......................................................................... 6Conclusion: .................................................................................................................................................... 6Bibliography ................................................................................................................................................. 7 2 Dell Case Analysis: A Globalization strategy- Aggregation, Adaptation and Arbitrage.YEARAbout Dell Computer:In year 2001 Dell was the only computer manufacturing company to consistently show positivegrowth of thirty to fifty percent. Although this rate is much lower than the earlier achievement ofthe company. Dell is a multinational company which has its presence over 34 countries andemployees nearly 35,000 employees in Asia Pacific, United Kingdom, United States of America,Europe, Middle East etc.The company has its manufacturing plants in Ireland, Malaysia, China,Tennessee and Brazil (Kraemer & Dedrick, 2002).The company has been following various distinctive policies for marketing which has helped inthe development and growth of business around the growth. These policies has not onlyimproved the profit margins but also increased the sales of the company in the global arena. Inthis case analysis the Dell’s analysis of globalization strategy has been identified which includesthe motive of aggregation, adaptation and arbitrage. A number of distinctive policies formarketing are discussed in the followings.Dell’s distinctive policies for Adaptation, Aggregation and Arbitration:A. First and second most applied strategy for Adaptation:First most applied strategy: Selecting preferred locations:The first and foremost strategy applied by Dell includes preferred location method so that itcould reach out the customers located in various locat0ions around the world. Also proper care istaken to select the areas which are near to the primary locations of sale. Finally the selection of3 Dell Case Analysis: A Globalization strategy- Aggregation, Adaptation and Arbitrage.YEARthe manufacturing plants is done after going through cost benefit which rises due to low cost oflabor, difference in currency exchange rate and even local government laws. Thus efforts aremade to set up manufacturing plants where the cost of production remains lower. At present thecompany has its production plants at Texas, Tennessee, Brazil and few other countries in AsiaPacific and EMEA region. This is because of the reason that the distance still matters. That is thehard reality of global expansion is that the cost effectiveness is achieved by taking benefit of lowpricing of either of the factors of production (Ghemawat, 2001).Second most applied strategy: Improved Logistics techniques:The Company follows the second most applied strategy of improving the highly efficientlogistics techniques in EMEA or Europe, Middle East and Africa. The headquarters for this areais kept at Bracknell, Ireland. Even with the increasing prices of labor the skilled labor of thecompanies allows to deliver quality service through efficient logistics system in these areas. Theuse of latest techniques and monitoring process the transfer of goods in these areas has proved inefficient handling of the company product and services. This way the regional strategies are usedby the company to gain global leadership (Ghemawat, 2005).B. First and second most applied strategy for Aggregation:First most applied strategy: Lay off:The first most applied strategy of the company is layoffs. This technique was used during theslowdown in year 2001. The layoffs technique which was applied by the company in various4 Dell Case Analysis: A Globalization strategy- Aggregation, Adaptation and Arbitrage.YEARoffices around the globe. This included five thousand employee’s layoffs in Austin (Texas, U.S.),two to three hundred employees in Tennessee and nearly six hundred employees in Europe. Thisway the company moved towards decreasing cost of production by lay off extra work force fromthe company offices (Ghemawat, 2003).Second most applied strategy: Direct Sales policy:Dell uses direct sales policy as second most applied strategy. The Company has achieved marketsupremacy by reaching out the customers directly. Also the company follows the build-to-ordermodel has helped the company to achieve higher return on investment with lower inventoryturnover and reduced overhead. This way the company has achieved cost effectiveness and aftersales service so as to meet up to the expectations of the customers (Ghemawat, 2007).C. First and second most applied strategy for Arbitrage:First most applied strategy: Contracted production:The first most applied strategy for arbitrage includes contracted production. Company relies oncontracted production with purchase of printed circuit board assemblies and subassemblies andvarious other products from manufacturers in Taiwan such as Hon Hai, Quanta and Arima. Thisway the outside supply of the various components by the company helps in achieving costeffectiveness in the regular production function. The cost control further helps the company infighting back the competition and achieving sales and growth for the company (Ghemawat,2001).5 "