The document discusses Dell's potential entry into the Brazilian market. It provides background on Brazil's growing economy and PC market. It also analyzes Dell's strengths and weaknesses, opportunities and threats in Brazil. Key factors for success include Dell's direct marketing model, lower costs, product customization, quality and differentiation. The document recommends Dell establish sub-brands to fit local communities while connecting to the parent brand. It also suggests Dell leverage its reputation for customer satisfaction and high-quality products.

1. Group #4 Dell Corporation in Brazil

2. Outline About Brazil About DELL SWOT Preconditions of entering Brazil DELL strategic position PESTEL analysis Key Success Factors DELL's sub-branding Recommendations

3. About Brazil Largest population in Latin America – 180 mln inhabitants Good economy conditions Mercosur custom union with other countries of Latin America (duty-free access to all of the members of union) Exchange rate R$/US$ is increasing (appreciation of R$)

4. By year 2000 Brazilian economy is growing rapidly Production growth increased by 11,2%, while predicted rate was only 6,8% Export increased by 13.8% ($8.62 bln.) Import increased by 18.6% ($9.02 bln.) About Brazil

5. Brazilian PC Market Main segments in PC market: Home Small business Government Commercial

6. Gray Market and Firms Imported computers were dismantled and re-assembled receiving a local brand and sold at dramatically low prices Imported parts without duties Workers under table Frequent infringement on copyrights No sales taxes Not required to invest in government programs

7. DELL Founded in 1984 by Michael Dell Products: Servers, storages and networking Printing and imaging Computers Electronics and accessories Enterprise services Customer services DELL's concept is that by selling computer systems directly to customers will help to understand their needs better Strategy contains direct customers model with new distribution channels

8. DELL Development Direct model (1984) Global expansion (1987) Mobile computing (1989) Evolve of desktop (1991) Servers and storages (1994) Revolution in the customer experience (1996) Customer-driven enterprise innovation (1997) Leads the industry (2000) Community involvement and environmental responsibility (2003)

9. Customer-Driven Innovation Listen=> Solve=> Impact DELL gathers requirements directly through customer interactions daily, organized events, social media venues, and customer panels, which gives a uniquely broad perspective on the computing landscape. The mission is to deliver innovative and cost-effective solutions that meet today's real-life customer challenges and work in existing environments and with other products. Dell is uniquely positioned to impact industry trends

10. FACTS about DELL Every Fortune 100 company does business with Dell. DELL is the #1 PC provider in the U.S. and #2 worldwide. About 140,000 systems shipped per day, on average – that’s more than one every second. DELL more than 400 product awards in 2007. DELL rank No. 34 among the Fortune 500 24 of the world’s top supercomputers run on Dell. The top 6 Internet service companies run on Dell. Its the first and only computer company offering free computer recycling to consumers worldwide.

11. SWOT Analysis STRENGHTS WEAKNESSES Brand recognition Cuts out the retailer Lea d supply chain; relatively cheap labor Online capabilities to customize products Strong service reputation Huge range of products C omponents from many suppliers from various countries Inventory OPPORTUNITIES THREATS Diversification strategy by introducing many new products Making and selling low-cost, low-price computers Change in management could lead the company into a new business model Competitive rivalry that exists in the PC market globally New entrants to the market pose potential threats Exposed to fluctuations in the World currency markets (i.e., changes in exchange rates)

12. Preconditions for Entering Brazil Increasing demand from global clients Long delivery times High delivery costs Customs regulations, tariffs and frequent strikes Import tax rate for PC was 32% in 1998

13. Dell Strategic Position Threat of Entrance Rivalry Bargaining Power Suppliers Bargaining Power Buyers Threat of Substitute Medium High Low High Low

14. PESTEL Analysis Political Changes of government ideology (policy, etc) Influences of local municipal reform Economic Largest population with GDP factor Well-developed manufacturing, services and other sectors Social Dell Corp. has good international reputation

15. PESTEL Analysis Technological Computer technology can be used as a tool in production sector of Brazil Environmental El Dorado was located near universities and 4 metropolitan centers Competition for inner city facilities (gray market) Legislative Implemented reserve policy Legislation on product

16. Key Success Factors Direct Marketing Model Lower Cost Differentiation Quality Product Customization of Product

17. Dell’s Sub-Branding Sub-brands : C an fit with local communities Must show something similar to the umbrella brand H elps identify perception of the specific audience Dell need to sure that the brand connects : E motional and rational aspect

18. Recommendation and Alternatives DELL must be aware of the benefits they want to realize Ensure the image customer satisfaction consumer awareness DELL relies on reputation in the Brazil market award-winning service high-quality product

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