1. How would you describe Dell’s current distinctive competencies? What other potential sources of distinctive competency might Dell work to develop? Answer:
According to the case, Dell’s Current distinctive competencies are: •
“Mass customization”; by focusing on this strategy (which they followed as their core differentiation strategy), Dell has successfully been able to transform the way consumers shop for technology. Customer could place customized orders for their PCs according to their unique needs and wants. Which at that time seemed to be a very attractive, innovative and hence successful strategy. However while concentrating too much on its distinctive strategy of mass customization for too long, Dell gravely failed to adapt to the changing world of technology which opportunity was promptly grabbed by its current and emerging competitors like HP, Sony, Lenexa, Apple and others. They quickly managed to reap the benefits of the fast growing market for technological products like PCs and notebooks. •
Direct Sales Channel- Dell has proved to be extremely successful at coming up with a very efficient and smart supply chain, by making its customers able to place orders for their PCs online, through e commerce. Dell used direct sales via Internet, whereas traditional PC manufacturers previously assembled PCs to make them ready for purchase at retail stores. Thus, Dell enjoyed early-to-market advantage. This eliminated the need for retailers that would add unnecessary time and cost for Dell and Dell has enjoyed this competency for a pro-longed period of time. •
Dell’s cost efficiency: Dell was able to provide PCs at a low cost for quite a period of time, until paying a low price for a standard PC was no more attracting the potential customers who were rather lured by the more technologically advanced products offered by Dell’s competitors like Hewlett-Packard. However continuing with its cost cutting strategy cost them their customers in later years when HP...
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