Importance of Having a Differential Advantage in a Competitive Market
Research Paper
Importance of having a Sustainable Differential Advantage in a competitive market
Introduction
HP the 2nd largest computer maker has decided that it may spin off its computer business. HP 's market-startling move follows that of IBM, which was the biggest technology company until it was usurped a few years ago by HP. IBM sold its PC division to Chinese manufacturer Lenovo in 2005.
Welcome to the world of PC manufacturers where competition is cut throat.
But there is one company that has stood and fought its rivals. The name of that company is Dell. Started on November 4 1984 by Michael Dell, Dell grew by the early 90’s to become the largest seller of PCs and servers. The company currently sells personal computers, servers, data storage devices, network switches, software, computer peripherals, mobiles and televisions.
So what makes Dell the largest computer maker and how has it sustained its ranking while others have buckled under pressure. What does Dell do and others have not done.
Seized Opportunities that came its way
Within 4 Year of its establishment it expanded globally. First in Ireland and now almost all over the world.
With the advent of the Internet, E-Commerce took off. Dell did not waste time and started selling via the website which was an instant hit in US.
It strategically acquired companies to increase its market share and to introduce new technology. Eg Dell acquired Alienware which introduced several new items like AMD microprocessors to the Dell stable.
Direct –To – Home selling model
Michael Dell was of the belief that by selling personal computer systems directly to customers, (A fact that he learned as a kid while selling newspapers) Dell could better understand customers ' needs and provide the most effective computing solutions to meet those needs. By selling directly to the customer, the company was able to reduce inventory and introduce new products without needing months to clear out old inventory in
Importance of having a Sustainable Differential Advantage in a competitive market
Introduction
HP the 2nd largest computer maker has decided that it may spin off its computer business. HP 's market-startling move follows that of IBM, which was the biggest technology company until it was usurped a few years ago by HP. IBM sold its PC division to Chinese manufacturer Lenovo in 2005.
Welcome to the world of PC manufacturers where competition is cut throat.
But there is one company that has stood and fought its rivals. The name of that company is Dell. Started on November 4 1984 by Michael Dell, Dell grew by the early 90’s to become the largest seller of PCs and servers. The company currently sells personal computers, servers, data storage devices, network switches, software, computer peripherals, mobiles and televisions.
So what makes Dell the largest computer maker and how has it sustained its ranking while others have buckled under pressure. What does Dell do and others have not done.
Seized Opportunities that came its way
Within 4 Year of its establishment it expanded globally. First in Ireland and now almost all over the world.
With the advent of the Internet, E-Commerce took off. Dell did not waste time and started selling via the website which was an instant hit in US.
It strategically acquired companies to increase its market share and to introduce new technology. Eg Dell acquired Alienware which introduced several new items like AMD microprocessors to the Dell stable.
Direct –To – Home selling model
Michael Dell was of the belief that by selling personal computer systems directly to customers, (A fact that he learned as a kid while selling newspapers) Dell could better understand customers ' needs and provide the most effective computing solutions to meet those needs. By selling directly to the customer, the company was able to reduce inventory and introduce new products without needing months to clear out old inventory in