Evaluating Dell's Expansion into Malaysia: Key Success Factors

This case study analyzes Dell's expansion into Malaysia, emphasizing the significance of geographical, legal, and economic factors. The geographical location played a crucial role in attracting customers and enhancing the company's performance, supported by e-commerce facilities like home delivery. Legal factors, particularly import and export restrictions, presented challenges for Dell, impacting its operational activities and scalability. The favorable economic performance of Malaysia positively influenced Dell's ability to establish itself and capitalize on business opportunities. While geographical and economic factors boosted Dell's operations, legal factors required careful navigation. This study provides insights into the complexities of multinational expansion and the importance of adapting to diverse environmental conditions. Desklib provides access to this case study along with a range of solved assignments and study resources for students.

COUNTRY’S FACTORS

 Apart from expansion from many countries, expansion
towards Malaysia is one of the most relevant and important
step for the enterprise which further provides many
financial and non-financial benefits to the enterprise in the
market place (Leftwich, L., Leftwich, J., Moore, N. and Roll,
C. 2014). Linking the same, since expansion attract lot of
activities such as selection of geographical location and
consideration of all the environmental factors, it is
necessary for the respective professionals and employees
to undergo such factors and enhance the overall
performance and credibility of the enterprise in the market
place. Thus, following three factors holds significant
influence for any multinational corporation to expand as it
put huge amount of influence towards the operations of
Dell both positively and negatively.

Geographic factor
 It has been observed that many Malaysia based organization were force to shut
down due to inappropriate selection of geographical location and lack of
customers purchasing the products of the enterprise or availing the services of
the enterprise. It is not to be mentioned that selection of geographical location is
one of the key stone upon which the success and performance of the enterprise
would be measured which further either enhance the performance of the
enterprise or reduce the credibility and creativity of the same (Leftwich, L.,
Leftwich, J., Moore, N. and Roll, C. 2014). Moreover, geographical location should
be review in terms of population of customers, safety of the locations, overall
status in the economy etc so to attract the customers for all the positive reasons.
 Linking the same, while expanding to Malaysia, the overall management team is
divided into different departments such as separate department for location, legal
factors etc, so to ensure appropriate performance and dissolution of different risks
or uncertainties. Now, after considering the performance Dell in Malaysia, it is
clearly evident that geographical location has affected the organization in a
positive manner by enhancing the level of customers and that of surplus of each
financial year. Further, e-commerce also enables the enterprise to provide
facilities like home delivery and satisfy the customers on personal level.

Legal factor
 Considering the restriction sanctioned by the Government towards importing
and exporting the items and other materials, it is not to be mentioned that
majority of the retail enterprise running in more than one country is facing
issues and problems (Johnsen, T., Howard, M. and Miemczyk, J. 2014). Legal
factors use to cover the overall operational activities and the parameters of
each department to a limited area. Further, it has been observed that many
retail organizations were force to shut down or experiencing different critical
situations such as cash crunch and liquidity because of frequent changes
towards legal factors and lack of support from the Government of the
respective country.
 Linking the same, Dell Incorporation, also have the same kind of experience as
that of other organizations mentioned above. Since the head quarters of the
enterprise is situated in United Kingdom, the organization use to import and
export the respective materials for performing the respective operations, but
later on was badly affected due to changes towards legal factors by the
Government. The enterprise struggles a lot to comply with the legal factors in
an appropriate way and perform the respective operations and failed
miserably to enhance the overall scale of the operation in a rapid manner
(Johnsen, T., Howard, M. and Miemczyk, J. 2014).

Economic factor
 Since economic performance of different countries provides an overall view
about the overall situation and standard of the business and highlight the
respective opportunities and threats, respective enterprises have to
experience while performing the respective operations and incorporating in
the market place. From last few years, the economic performance of
Malaysia were enhanced which further provides favorable advantage to the
enterprise to exist in the market place in an appropriate manner and
attract more and more customers from different locations (Hines, T. 2014).
 Since, the economic performance of the country was good, it enables the
professionals of Dell to perform the respective activities in an appropriate
manner and properly settle down in the market place. Further, favorable
economy also notch up the overall performance and position of the
enterprise in the market place by highlight the respective business
opportunities and pointing out the path to follow for fulfilling the respective
financial and non-financial vision and mission (Hines, T. 2014). Moreover,
both geographic and economic factor were positively affect the above
mentioned enterprise, while the legal factors build some pillars to
overcome while performing the operations.