Dell, a direct computer system company, has entered the Asia market around three years back and has acquired the number four position in the Asia Pecific market in terms of market share. And the credit goes to Mr Geoff Healey, director of enterprise business of Dell for Asia Pecific who steered the Dell operations in the region in last three years. Ashu Kumar of eFE talked to him about Dell's future plans. Excerpts:What impact will the US economy slowdown have on Dell's business and how will it affect Asian operations?
Like other global companies, Dell is also geographically spread across the world. We are equally spread in US, Europe, Japan and rest of the Asia. There is no doubt that the US economy is facing a slowdown and it will impact all the companies in the US market. Japan and Europe are also facing their own problems in the economy. I see the pressure building up in Asia markets to make up for the US slowdown. Dell is very bullish about Asian market as this region provides substantial opportunities. I can see more responsibilities and pressure on my shoulders being in the Asian market.
With the slowdown in markets and IT budgets of companies shrinking, how do you see your direct-to-customer distribution model working? Especially as it depends more on pull rather than push?
In fact, it is our direct model which will work for us to come out as a winner during the slowdown. The other leading players in computers systems business are retaining at least a two-tier distribution model and spending around 30-40 per cent of the cost. Dell, dealing directly with consumers, has a tremendous price advantage which will work as a competitive edge against others.
The slowdown has made the price factor in decision making very important as it has gone up in the checklist to number one from number four. Dell will get an advantage in this price sensitive market. Moreover, being always close to the customer, Dell will also be able to react to the market changes much faster than other companies.
According to you, which are the fast-growing markets in Asia for Dell?
Dell has identified China and India as the largest emerging markets followed by Korea and Australia. We are already doing direct distribution in China since last 18 months and India has also gone direct late last year. We have achieved remarkable growth in these two markets in a short time period. Dell targets to be in the top three players in the computer system industry in these two countries.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
