Dell : The World's Fastest Growing Pc Market

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Facts and background Dell entered into China, the world 's fastest growing PC market in 1998. Even though it was a late entrant, Dell initially succeeded through its direct business model, which is primarily aimed at industry and public service units. But this approach will leave the Chinese consumers ' desire to touch the product before buying. Although the actual growth of the zones, the third and fourth tier cities are left behind. But the Chinese grass was tamed domestic brand, Lenovo. It 's relational and efficient supply chain business model, combined with the commercial network helped Lenovo corner 35% market share; Dell continues to dip. But 2005 was a challenging year for Dell. Not only did the company 's struggles in the consumer electronics segment, which leads to the cancellation of MP3 players, but also the core of the PC segment, Dell was the corner of its traditional competitors, such as Hewlett-Packard and Gateway, and new competitors, such as Lenovo and Acer. This resulted in lower average sales prices of Dell products and operating margin weakened. Dell has problems on various fronts; the share price fell to $ 29 in October 2005. (IBS Case Development Centre, 2015)
In December 2004, Lenovo 's acquisition of China 's leading computer manufacturers IBM 's PC division of $ 1.75 billion dollars. The transaction generated $ 13 billion business, which accounts for 8% of the global PC market. The takeover meant the integration of IBM by Lenovo 's

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