One of the greatest challenges for multinational organisations to cut a niche in the global market is competition. Dell is one of the multinationals facing stiff competitions both locally and globally. Some of its great competitors comprise of Hewlett Packard, Samsung and Toshiba among others. Dell had a great market share in the last five years but it is greatly losing to the competitors. Despite measures to gain grounds by reducing the price of its products, the situation is worsening. Year by year the profits and revenue is decreasing. This is a major challenge to reckon with. In the near future the company may be even in much financial challenges as revenues are highly decreasing thus challenge to expansion. Competition is expected to be stiffer in the future due to emergence of more PC providers. To keep in the market it is expected to broaden its services to other products and undertake mergers. Through acquisition it will ensure a control on much of the market. Its research and development department is up for the task to see Dell products being relevant in the market (Man, 2006). In near future it may diversify to other gadgets such as mobile phones which are highly integrating and more sophisticated.
Technology is changing day by day. This is one of the major factors influencing globalisation. To ensure products of an organisation are relevant to the market and to consumers, technological advances must be incorporated. Every organisation should be highly competitive and innovative to come up with innovations and inventions (Naomi, 2011). Dell is not taking chances and has adopted customer related approach to suit the needs of its client. With introduction of dell’s advisory committee which is a panel to handle customer related issues more sophisticated products to satisfy the customer clientele may be launched. Each day more advanced computers are being invented. It is expected that in the near future more complex PCs may be in the market. It is expected that complex products, far more efficient than current trends of binary and digital computing will be developed. Dell is committed to its services of manufacturing and distribution of its products. This approach has led to more process being discovered such as wireless network in factories to enhance efficiency in assembling.
The human population has been in the increase for the last five years. To reach this large market the organisation has to adopt strategies to reach its clientele base. In the past Dell has distributed its products to the consumers without middlemen (Michael, Duane & Hoskisson, 2010). This has enabled it to drastically reduce the prices. More approach such as ecommerce where its products are sold online has been enabled. An example is dell printers have imbedded software that directs clients to dell website. This enables direct access and ease customer relation. With more social sites nowadays such as Facebook, twitter and blogs, advertising is becoming easier (Noel & Hulbert, 2007). A large market base can be reached all over the world. Sharing of information is enhanced and knowledge. Therefore management in different economic regions can be efficiently met. The increase in population may signify high demand in products. Hence need for advanced technology in production to increase its output which can be met through outsourcing.
The greatest impact of globalisation is culture change. Handling of workforce and customers from different cultural background is not an easy task. Led by Michael Dell the organisation has a talented and dedicated team in their workforce (Schiffrin & Bisat, 2004). To survive long in the industry the competition for talented and highly skilled manpower is growing rapidly. Each organisation fights to keep its staff intact. Outsourcing workforce from other nations is possible. This is as a result of globalisation and the mobility of workforce. Hence culture is changing each day due to this interaction. With venture in Africa, China, and India its culture may be highly transformed hence need to create a culture within that understands the operations of Dell. Michael Dell the CEO is creating a strong workforce that will take after him once he is gone.