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Although it can still provide competitive advantage, evidence over the past few years indicates that any such advantages will be temporary. Production cost control is only a core competency, therefore, not a source of sustainable competitive advantage. The company's brand is a source of sustainable competitive advantage as the Dell name has opened doors into other product lines, some of which have been successful for Dell. The company name, however, is no stronger than that of Hewlett-Packard or Apple, two of its main competitors, and is arguably weaker than either two. Thus, while the brand value of Dell is more easily sustained it is not necessarily a source of competitive advantage.
This leaves Dell in a challenging position. It has built its market share on its ability to deliver the lowest-cost computers and the best value proposition. The minute competitors are able to beat Dell's prices or value, the company is going to suffer. This is already happening in the U.S. consumer market. Going forward, Dell needs to find a true source of sustainable...
The company's competitors are so strong that right now anything Dell does can be matched or bested by HP, Apple or the newer Asian computer-makers. Even Dell's name is no guarantee of success. Dell can continue to succeed as a strong competitor if it controls its costs (especially in marketing). There is the possibility that a family of integrated products can provide some source of competitive advantage but even then it is hard to make the case that HP could not match such an advantage. Dell needs to recognize that its current market position is anything but certain, and it needs to look at all alternatives to bring its costs back down so that it can once again be the lowest cost producer in the industry. Eventually, if a low cost producer has a large enough market share that its production efficiencies and buying power are unmatchable, it can sustain this advantage (Wal-Mart is a good example of this). For now, however, Dell is not in that position and given the sheer size of HP, it might never be able to outcompete the giant on cost.
In particular, Wyse gave Dell a better foothold in the sprawling segment of cloud computing. This area has helped companies save money through the delivery of affordable services and software over internet-based infrastructures (Ignatiuk, 2008). Dell will also benefit from the prior experience of Silver Lake expertise that has revived several tech companies such as Skype. This wrenching would typically change Silver Lake to be tricky for a public corporation
Michael Dell While looking for a multibillion dollar management, the success of a company is measured by its business ideas and its strategic moves. The capacities of the individual personnel shouldn't limit the operating capabilities. The winning combination for a management team comprises of practical experience along with intellectual capacity while being able to respond to the ever changing requirements of an industry. A case in point is Michael Dell. Backdrop Michael Dell
[...] transaction customers, which represent 30% of U.S. sales, are small and medium size enterprises (about 20%) and home office customers and consumers" (Kraemer, Dedrick and Yamashiro, 2000) Built-to-Order Production The built-to-order production strategy was implemented to the great success of Dell Computer Corporation as it aided it differentiate itself from competing PC manufacturers. It ensured customers of the highest levels of interest in satisfying their needs and it as such
Financial Accounting for Management) Dell Inc. is considered to be a multinational technology business that is in the process of developing, manufacturing, sells, and supporting personal computers and other computer- associated products. Founded in Round Rock, Texas, Dell services somewhere around 76,500 people all over the world as of 2012. Dell had gone through their growth process during the 1980s and 1990s to turn into (for a time) the major seller
Supply Chain Characteristics There are five critical characteristics of supply chain in relation to the personal computer analysis. One of the essential characteristics of supply chain is the view of the process as an important asset. This makes it important for the organization to incorporate supply chain within the products and marketing strategies. Another critical characteristic is integration of new technologies with the aim of minimizing the cost of provision of
They have been able to gain a sizable consumer base of customers in China partially due to the nationalism PC buyers have in that country for high tech manufacturers based there. For Lenovo to gain greater market share in the U.S., they will need to continue purusing an aggressive strategy of uniqueness and allowing customers greater flexibility in how they customize systems to their own needs. Works Cited V Daniel, R.