1) Why do you think dell chooses to score its factories in five different countries-two factories in the US and others in four different countries?
Ans: Dell wants to rush a competitive advantage over its competitors so orbit its factories at five different countries may ache get down its cost of production.
* Resources availability: - Manufacturers always need a resources to find their products so it will be easy for the company to bombardment if resources are available easily and nearby. They also look for external capital, technologies, and information they can use at home or any of their facilities abroad. Resources may be the labour, materials that are neesed to prodec goods. If these resources are cheaper so a company can produce its product at less cheaper price than its competitors. This will reduce their cost. For example: Dells factories have SLC(Suppliers Logistic Center) next to them from where the parts for computer are supplied 90 minutes. Dell may also be producing abroad because, sometimes company need to provide quick services which is non possible by puting factory only in iodine place.
* Accessibility: - By locating factories at different places dingle can supply finished product to its respective guest being most cost efficient, thus reducing fright, merchant marine and cargo charges.
* Growth strategy: - Company may establish its factory in foreign country to attract or target foreign customers. They may see a fortune to grow in the future by deceiveing products more than and more. Its all about market segmentation, targeting, positioning and logistics of product.
* Diversify sources of sales and supplies: - DELL has been acquiring same products from different countries by which they have been able to avoid the impact of price fluctuation in any one country. To avoid huge fluctuation in sales and profits DELL may have depended on more than one country to get required supplies and to sell its products....If you want to get a full essay, order it on our website: Ordercustompaper.com
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