Dell’s Competitive Advantage

Focusing on cost leadership has allowed Dell to sustain a competitive advantage in the PC market for the last few years. The primary method Dell uses in order to realize and sustain their competitive advantage is a distinctive, direct to consumer business model. The model is known as Dell Direct, this refers to their relations with their customers as being пїЅdirect.пїЅ This model helps Dell focus on the price for performance, customization, service and support. Additionally, Dell is able to differentiate itself from its competitors with its customized just-in time manufacturing. With this customization, Dell is able to offer customers more value for their money by abolishing intermediaries in their procurement, manufacturing and distribution processes.

DellпїЅs primary resources include the most up-to-date technology and IT tools that allow it to effectively move along their advanced supply chain and attain the value they are reaching for. DellпїЅs value chain allows Dell and its suppliers to exchange information and interact with each other. The Internet, DellпїЅs key IT factor in its success, results in lower costs to customers than other retailers