Japan has a stable political system that does not affect the lives of the citizens that much but Dell had to convert the products price in terms of Japanese yen and since their currency is devalued the costs are a key consideration. But this is still something Dell has handled well and it is providing low priced computers in the region.
The G stands for geographic distance which includes physical distance, transportation and distribution. Dell has had its operations in this region as well since manufacturing and delivering on time requires manufacturing process to be operatable in the region. Dell has been in to cost leadership and also vertical integration by being close to its market. Thus they had sufficient funds to expand and then maintain their strategies and core competencies. The E stands for economic distance which includes income disparities, purchasing power and economic conditions. Dell has been producing cheaper computers but it has not been until now that the consumers have included computers as a need. People in this region have low incomes and they usually depend upon internet cafes to use computers so Dell positioned itself wisely by selling to enterprises and public sectors only. But now trends and economic situations have changed and people are buying computers more than ever so Dell has now come up with retail stores to sell its computers.
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