"what should dell do next to maintain its competitive advantage" course hero

3) Invest more in Research and Development. With the growth of quality competition, it is crucial for Dell to keep its competitive advantage by offering new technology products and services. Dell should consider expanding into peripheral product markets that would compliment their computer sales. 4) Dell could offer online data back-up capabilities.

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What is Dell's strategy?

Dell’s strategy was to build-to-order. Dell Computer would offer customers a menu of choices, and then assemble the individual computers to the precise customer specifications. This strategy proved to be very successful, boosting the company from its startup position to nationwide prominence within less than a decade.

How does Dell cost leadership work?

In cost leadership, Dell sets out to become the low cost producer in its industry. They include the pursuit of economies of scale, proprietary technology, preferential access to raw materials and other factors. A low cost producer a Dell is must find and exploit all sources of cost advantage knowing that if a firm can achieve and sustain overall cost leadership, then it will be an above average performer in its industry, provided it can command prices at or near the industry average. Dell is able to use economies of scale being in the entire world searching for lower costs, high qualified labour, and tax credit, distribution channels, in order to grow and have better operational margins. Dell have become the owner of their core business by processing all their production, plants and other processes without the risk of sharing confidential knowledge, and decreasing costs of production.

What is Dell differentiation?

It is rewarded for its uniqueness with a premium price. Dell differentiation is based on a superior design, quality, service and functionality. As a matter of fact, they want to create deeper relationships with customers by expanding high quality services;

What is Dell Marketplace?

Dell customers are turning to the Internet as a primary channel to purchase the goods and services needed to conduct their businesses. The Dell Marketplace extends value to its customers by providing access to a dynamic e-commerce community through powerful, reliable and affordable open-standard technologies.

What is Dell's single point accountability?

Finally, the third and most important key lies with single-point accountability. Dell has always preached this doctrine, and it will continue to do so with its more upstream consulting services. The company takes a leadership position in every project it sells and assumes sole responsibility for ensuring the project’s success. As the front-face to the client, Dell can mask the complexities of working with several consulting firms and allow the client to focus on what gets done-not which company does the work. Dell’s practice of vertically integrating partners within its business is illustrated next. In addition to cost advantages, the vertical integration model allows Dell to pick and choose resources with the most appropriate skill sets for each assignment, instead of having to rely only on the skills of its internal, non-deployed consultants.

Why does Dell have to change the way they manage their suppliers?

This is because Dell is very well known because of their good response and low cost. So Managing low cost by managing JIT techniques for inventories is easier when you have 3 products than when you have 200.

How much is Dell's market capitalization?

Dell has a market capitalization of 88.24 billion, has earnings of 3.45 billion (EBITDA) for the trailing twelve months, carries 5.12 billion in cash, and 506 million in debt. The company is sufficiently capitalized to proceed with operations and planned capital expenditures.

Why is Dell so successful?

Dell: High Velocity, Focused Supply Chain Management#N#What are the Fundamental Reasons for Dell’s Success?#N#Dell was founded in the year 1983 by Michael Dell, who was at the time a medical student. Dell has since then become one of the biggest technological companies in America. The company has managed to accomplish this through the development of a strategy that is centered on high velocity, focused supply chain management, full visibility and partnerships with suppliers, focused manufacturing and building to order and lastly direct customer contact.#N#i. Direct Customer Contact#N#From the inception of Dell building its own machines in the year 1985, the company is perceived to have retailed its products directly to the consumer. This was attained through the removal of any middlemen in the process and ensuring that the consumers get the products considerably faster. In the same manner, it is deemed that Dell has made significant investments in customer relationship management systems so as to guarantee closeness and familiarity with its key consumers. Furthermore, it is perceived that the company has assessed the cost to serve dissimilar consumer segments by means of designing product offerings in view of that.#N#ii. Direct Communication with Consumers and Real-time Visibility#N#Dell’s strategy hinges on the internet, which permits the company to directly communicate with consumers and attain real-time visibility of purchasing patterns. Without a

What is Dell's business?

Dell is one among the largest computer system companies in the world, which is unique and popular because of its direct marketing policy . It deals in manufacturing personal computers, servers or enterprise products, storages and offer IT solutions for the customers. The services provided by the company are of high quality and low cost, thus providing the source of economical investment to the clients. Dell is among the pioneers and

Why was Dell so attractive in 1998?

Using Porter's five forces analysis, the reasons for this attractiveness can be determined (QuickMBA, 2010). Most computer makers have a moderate amount of bargaining power over suppliers. The handful of major computer makers have high volume and the inputs are not sufficiently differentiated, both factors that give some power to the computer maker. There are also low switching costs within the industry.