Bartlett and Beamish describe three types of strategic approaches that an MNE can use to respond to challenges, defend worldwide dominance, challenge the global leader, and protect domestic niches.
Dell is the sixth largest company in Texas by total revenue, according to Fortune magazine. In the Chennai facility had the target of producingdesktop PCs, and plans envisaged it starting to produce notebook PCs and other products in the second half of Moreover, the company provides product support and several other product-related services such as financing and asset management Datamonitor, However, Bain consultant Kevin Rollins persuaded Michael Dell to pull out of these deals, believing they would be money losers in the long run.
Dell chose to locate its manufacturing plants close to such regional markets for better market access, lower shipping costs, and improved responsiveness in delivery.
In such process the business should reduce the lead the perfect time to delivery to the customer as still the business takes two days to deliver the computer.
This contributes to cost reduction. The company has described its main competencies through most advanced technology offerings and flexible manufacturing.
Dell focused on enabling "just in time" delivery of parts and components. However, doing so eroded its core competencies. For example, labour costs in Malaysia are lower than in neighbouring Singapore, but the quality of labour remains comparatively high.
And has long term effects on Efficiency, production flexibility, Costs and quality.