Observing the picture number 2 (1st point) is possible to analyze the rivalry among competitors in…
Working closely with suppliers to build long term business relationships based on strict quality and price criteria…
As one of the largest computer systems companies, Dell pioneered the concept of selling personal computers direct to customers with it’s build-to-order manufacturing system. Looking specifically at Dell’s working capital competitive advantage, several aspects put Dell ahead of the curve. Through Dell’s Direct Sales model, they get paid before they have to spend money, which reduces/eliminates accounts receivables. They also keep their inventories low which not only reduces the warehouse cost, but also minimizes the decreased value of inventory over time. Another advantage of orders manufactured on demand is that it allows Dell to quickly adapt and change when unexpected events arise such as product defects.…
When analyzing a firm’s competitive advantage, it is important to look both at its revenue and ist cost side. In this particular case, Dell’s competitive advantage can be mainly attributed to its reduced average costs. In general, the reduction of average costs can be mainly traced back to Dell’s improved Supply Chain Management by the following measures:…
Hines P (1994). Creating World class Suppliers: Unlocking mutual Competitive Advantage. London: Pitman Publishing. 277.…
The suppliers bargaining power is generally strong because of the big monopolies and the high importance of purchasing components and operating system, therefore it decreases the profitability of the market players.…
Dell’s main strategic elements are built around a variety of core fundamentals which give Dell the competitive advantage it needs to regain its position as the leading manufacturer of IT products and services.…
Roderick, Daffyd. "For Whom the Tell Tolls." Time Asia. Vol. 159 No. 11. March 25,…
When Microsoft decided to enter the video game market with its Xbox gaming console executives had to make a strategic decision whether to manufacture the Xbox or outsource the manufacturing. After some studies, it was decided that they did not have manufacturing and logistics capabilities and decided to outsource the assembly and significant logistics functions to Flextronics, a Singapore-based contract manufacturer. Microsoft already knew Flextronics because they had already contracted out the manufacture of computer mice to them. Since Microsoft had worked with Flextronics for several years, relationships between employees of the two companies are very good making the strategic alliance an advantage to Microsoft. Another advantage of the outsourcing to Flextronics was the cost and quality of Flextronics.…
Supplier power was also high. Intel and Microsoft ran near-monopolies in supplying microprocessors and operating systems, respectively. By 1998, 96% of all PC’s ran on “Wintel.” These two suppliers drew profits from all PC companies and minimized differentiation, as there were few substitutes and little options of switching to another supplier.…
Supply chain management is another key competitive advantage that dell holds. Suppliers are required to have hubs near Dell's factories and manufacturing plants. Dell has reduced its turn around time to less than 5 days with their state of the art real time communications with their suppliers. This allows Dell to provide better service and faster turnaround time. Supplier loyalty has also increased. Dell and Wal-mart have both been industry leaders in supply chain management and the decreased cost in inventory have helped their bottom lines…
Dell Inc., one of the most successful information technology companies in the world, experienced record high share price above industry average in 2002 due to its renowned direct sale model and customized computers. However, at the beginning of 2006, Dell lost leading position to Hewlett-Packard, triggered several subsequent reactions to more adapt to fiercer marketplace as well, to win market share back. One of the key changes Dell implemented was introducing retailers into the supply chain. Dell also outsourced manufacture to contractors. Also launched new model series embedded with user-friendly features to capture potential market from rivals. It is certain there are two sides of each practice. This will be analyzed in this report, followed by critical reasoning as to possible causes that raised problems in Dell.…
The fact that HP are working with its dealers is a major step in the continued success of HP and is key in determining what customers want. They have worked very close to improve the performance of the overall supply chain. HP should continue to utilize SPaM’s supply chain modeling. They have increased customer satisfaction, production innovation and differentiation. Based on the number of projects HP had, it revealed that demand uncertainty resulted from forecast errors and was the key source of inefficiency in the supply chain. With HP expanding into distributing channels…
Dell’s long run commitment to its supplier laid the basis Consumer Specific Configurati on Built-ToOrder Dell’s Procurement System • • • • • Focus on waste, time and cost reduction to maintain margines in compatetive market Dell relies on a unique supply chain strategy that gathers large volumes of customer information through its directsales model and shares it with internal procurement and sales departments, as well as external suppliers This close relationship allows dell to know what they must be able to supply in real time, and then very quickly and precisely meet that demand while maintaining low inventory Data loop between consumer sales team and other with supplier, sales and procurement team. Procurement Capabilities Category Management • Category strategy development • Demand management • Strategic Sourcing • Supplier Relationship Management…
Homework #1 (Due – April 18, 2013) Electronic Submission MS Word MSc ECOM/ICOM assignment submission system File name: hw1 and your HKU ID (e.g. hw1_1234567) Please limit the answer to 1 page for each (sub)question (60%) Case: Dell Inc.: Improving the Flexibility of the Desktop PC Supply Chain…