Achieving Competitive Advantage

Topics: Supply chain, Globalization, Supply chain management Pages: 3 (716 words) Published: April 1, 2007
Achieving Competitive Advantage
Competitive advantage helps organizations take the lead in the marketplace and stay one step ahead of the competition. Dell and Netflix are organizations that have thrived on using competitive advantage through their supply chains. This paper will discuss Dell and Netflix competitive advantage, how supply chain is used to gain competitive advantage, and how ethical concerns, globalizations, diversity, and e-business are part of their supply chain processes.

Until recently Dell was the world's largest PC manufacturer before losing its spot to HP. Dell's process of building the "perfect" PC tailored to each customers needs and the ability to deliver them efficiently gave Dell the competitive advantage to be the world's largest PC manufacturer. HP adopted this process along with its retail operations helped overtake the market lead.

Netflix is a company that has built its foundation on supply chain. Netflix offers an online movie rental service for a monthly fee depending on the number of movies a customer selects to have out at a time. Blockbuster has adopted this process and like HP is using their retail operations to position themselves are number one in the market. Dell and Netflix use their supply chain effectively to gain competitive advantage. Sander's describes Dell as "The company traditionally uses its supply chain and manufacturing model as a competitive advantage" (Sanders). "Dell has formed a new global operation to take responsibility for all manufacturing, procurement and supply chain activities, including the vendor's nine manufacturing facilities (Sanders). This process looks to create a more efficient supply chain by managing supply chain globally as opposed to regionally; which is the current process.

The ability of Netflix to offer no late fees and have sufficient inventory is important to their success. "Netflix operates 42 shipping centers located throughout the United States. More than 90% of Netflix...

References: About Us, Netflix Corporate Website, Retrieved on February 17, 2007 at:
Dell Refocuses on Supply Chain., Tom Sanders, Feb 15, 2007, Retrieved On. February 17, 2007 at:
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