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A Price War Began in Japan in the Personal Computer

question 8

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A price war began in Japan in the personal computer market when Dell,Inc.introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order and its main avenue for PC sales in North America.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,which maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its North American method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to the customer.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers.
-Refer to Computer Sales.Dell's decision to market PCs by phone in Japan mirrors its marketing strategy in North America.This suggests Dell believes in which concept?


Definitions:

Familism

A cultural value that emphasizes the importance of family ties, loyalty, and unity over individual needs.

Patriarchy

A social system where men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Brotherhood

A relationship between brothers or a bond among men or a group of people who share common goals, interests, or experiences.

Camaraderie

A spirit of friendly good-fellowship and mutual trust among people who spend a lot of time together.

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