Dell Case Study Technology Case Study Research Paper (Case Study Sample)

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Dell Case Study
Dell faces a quandary concerning its expansion to Brazil, which it considers a tentative market. The company is unsure of the ideal locality to establish a manufacturing plant. Brazil is a federal country with 26 states, each of which has a different legislature and governorship. This complicated Dell’s efforts to identify an ideal or strategic location. The company considered the prevailing regulations and government incentives. For example, the company considered the incentives offered, prevailing labor laws, the supply of human capital, amenities and infrastructure, security, overheads, and tax regime. Based on these considerations, it selected the state of Rio Grande do Sul. Polo, an independent private corporation working close to the government supported foreign investment. However, after the 1998 gubernatorial election, Dutra, who won the election, rejected all the incentives that the former governor, Britto had promised Dell. Dutra was a member of the Partido dos Trabalhadores, Brazil's workers’ party. Pursuant to the changes, the company faces a dilemma on whether to leave Brazil, shift to another state, or renegotiate with the incumbent government.