Dell it's a US
computermaker, who
now wants to expand to
South America using a
Brazilian base.
This company will
start making
computers at a new
factory in a city, called
Eldorado
Buenos Aires, Rio de Janerio,
Sao Paulo and Santiago are the
regions where most of the
computer-using populance is
concentrated and Dell hopes to
serve all these markets.
Dell's plan: aircraft from Miami will land
(carrying computer components that will be
sent straight to Dell's factory) with parts
deliveres from suppliers in Brazil, they will
be assambled to order, packed and
deliveres to costumers across the continent.
This is a challenge for Dell,
because is not only to mount an
effective market, but also manage a
complex logistics system and deal
with the problems of unreliable road
and airtransport networks.
Dell currently exports
computer to a few Latin
American countries such as
Mexico and Colombia.
But has never sold
to markets in
Argentina or Brazil.
Latin America bought
5 million PCs and
demand is growing at
15 per cent a year
Brazil, the region's largest
market, only 3-4 per cent of
the population owns a PC.
Dell decides to locate in Brazil because it is
the region's biggest market and because the
government gives computer companies
substantial tax incentives as part of its plan to
develop local high technology industries.
Air transport and delivery systems are
tolerably efficient in south eastern Brazil and
parts of Uruguay, Chile and Argentina. Dell
may still find it's struggling to co-ordniate
operations and sales over a vast region.