Dell – The reason for selecting Hong Kong Essay Example

lower than that of Hong Kong. Dell aims to strengthen its core direct business model by utilizing the internet to target customers who have an educational background, knowledge about PCs, and own a personal computer either at home or in their office. These statistics are accessible through www.

China.org.cn reported that the education system in China is progressing, however, as of 2001 there were only 390,000 graduate students enrolled in universities and institutions for a population of 1.27627 billion people. This suggests a limited number of educated individuals in China. Furthermore, cultural factors have resulted in fewer opportunities for Chinese citizens to acquire personal computers at home.

Access to the internet is limited for certain individuals who are only able to utilize a computer at their workplace or an Internet Cafe, which can hinder opportunities for direct sales and online business in the PC market. During Q1 2002, there was a 12% rise in sales of 5.39 million units throughout the Asia Pacific region; however, Hong Kong and Singapore noted notable declines in sales by approximately 19%.

With a 5.6% increase in competitiveness, China has become an important player in the market, while others have seen a decline of 0% and -12.2%. In the Asia Pacific region, Legend holds a dominant position as a market leader in China.

Although currently ranked fourth in the Asia Pacific market, Dell holds a 33.4% unit of shipment market share, making it the second-largest player in Hong Kong's branded personal workstation market. As Hong Kong moves towards becoming a knowledge economy, it is essential to strengthen its IT capabilities. The government is supporting entrepreneurship and has invested HKD13 billion into completing Pokfulam Cyberport

by 2007, which will create more opportunities for IT businesses.

According to "Profiles of Hong Kong Major Service Industries" as of 23 September 2002, Hong Kong is a highly developed IT hub in the region, with IT spending reaching HK$1.71 billion in 2000 - one of the highest per capita rates in Asia. Over 2.3 million personal computers have been installed in Hong Kong. Because of limited competition and cultural influence, it is an ideal city for Dell to conduct PC business. Additionally, according to the software industry information center, there is still potential for development within the Hong Kong market while oversaturation remains an issue within the USA market.