Dell's effort to restore past reputation

I read an article about Dell's turnaround and it's future strategy. You know Dell once the most popular computer producer in the world. But now Dell's position in the market is being faded. But recently, Dell's sales forces are increasing and it exceeded expert's expectations. What's the reason of this rising? The author said that it's because of developing new market. In fact, Dell have very conservative aspects. Sometimes it looks like a stupid attitude. When Dell was a No.1 producer, they didn't try to develop other markets outside US. As of the result, Dell is now N0.5 in the market following HP, Apple, Acer, and Toshiba. In fact, Dell has very sophisticated ordering system and people really loved Dell's computers. But they failed to adapt the turbulent global market trend.
Now, Dell try to develop new market like China, South-east asia, and Europe. Especilly, they try to penetrate China's price sensitive market. China's consumers mostly don't have enough money to buy computers. Dell considered these factors and lowering their prices daringly. But many critics warn that Dell's innovation is like a venture. And they also pointed at the dangers of price sensitive market. Also, Dell is a huge company and this effort can make their products' quality. Accordingly, there can be many defective products and they can drop the reputation of Dell. In fact, Dell's strength was reliability and convenience. Experts suggest that Dell should read the customer's tendency with less information. Many global companies failed because of lack of information. But it's the reality and they have to cultivate the market. In other words, they have to learn the ability to read the customer buying tendency.
I think iRiver and Dell have in common. They both were the most honorable producer and also failed steeply. But there is one difference. iRiver was completely failed and Dell can be a No.1 producer again. I think Dell shows the way that Korean companies will pass through. Although now korean companies rule many parts of global market, some time they can be a failure and maybe cannot survive anymore. Our companies were survived from IMF, but I think the more dangerous crisis will come to Korea. We don't know the time, but we have to prepare for survival.

Author: Aaron Ricadela
Title: Dell Appears to Turn a Corner
Date: May 30, 2008, 12:01AM EST
Page: 2

reference: http://www.businessweek.com/technology/content/may2008/tc20080529_159057.htm
entry #12 20700067