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Formation of strategic alliances in the international front requires proper assessment of the environmental conditions in the identified country. Therefore, in this case Dell has to assess the trade conditions in the UK before the establishment of a strategic alliance in the region. Such evaluation must take into account all the factors that affect the computer business in the UK.
Based on the PESTEL model, the first group of factors falls within the realm of political requirements. In this case, Dell Inc has to assess the current and future legislations that directly affect the computer industry. The computer industry is in the UK is a lucrative industry due to high demand of computer products.
However, the sector is heavily regulated by the government to ensure secure trade in computer products and services. Issues such as data security have subjected the sector to intense regulations in the UK. Dell will therefore have to adhere to the requirements before establishing its strategic alliance in the region. With regards to political stability, the UK region is one of the regions in the world that is politically stable.
With regards to economic issues, the UK is currently enjoying a state of economic recovery after the financial and economic crisis in the year 2008. The current economic conditions also favor the development of trade in the region.
Most countries in the region such as the England and Ireland also experience a constant growth rate in the GDP. However, it is important to note that the region’s economy relies on very complicated financial services such as the subprime mortgages in the U.S. such conditions may lead to a future financial crisis if they are not solved.
Socially, the UK region is one of the areas in the world that has a diverse range of social aspects that affect the manufacturing sector. The consumption in the country is heavily determined by the demographic factors such as age and gender.
Consumption of computer products and service is higher among the youths and adults in early middle age. The consumer purchase decisions in the region are also affected by the value of the brand. The media sector plays an important role in influencing the consumer behavior in the region.
Technological environment in the UK is highly developed. The UK is the center of innovation in the world. Apart from the U.S. and Japan, the UK is one of the regions in the world that has highly developed technologies. This therefore presents a good opportunity for Dell to establish its alliances in the region.
However, the company should be ready to experience intense competition due to the presence of other locally based computer firms. With regards to environmental issues, the UK has tough environmental laws that control the activities of the environment.
However the region has abundant natural resources that are important for operations of the company. Legal issues greatly influence the computer industry in the region. The UK has established regulations that are meant to control the establishment of trade.
In spite of the aforementioned factors in the PESTEL analysis, I will not suspend or limit the operations of the company in UK due to availability of natural resource, better trade conditions, proper strategic location that can be easily accessed by many consumers across the world. The region has good trade networks, which Dell can use to import raw materials from other parts of the world and at the same time export its finished products.
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