Ever wondered what is the competitive advantage of DELL? Well, in order to wonder… You should own a Dell Laptop! Or a desktop! Only then you’ll have a chance… Oops!! “many” chances to say.. WHAT THE DELL!!!
My Dell PC was born on August 6th , 2009 and even before completing its one year birthday, there were frequent hiccups and cries from my Dell baby! The Message was – “Your laptop’s battery life is getting expired! Please replace the battery!” And beneath that read another important one: “Replacement of battery would not be covered under Warranty!” The Customer service said the same!! So, I had to pay and buy another battery! Then came the hue and
cry from my Hard disk due to some bad sectors in the hard disk! So, I had to replace that too! What d Dell!?!?! Before the surfacing of such problems, I had bought a DELL Desktop for my home!
Even it contributed its own share of problems! Had to replace the Cd/DVD Disk drive…! Checked for bad sectors in the hard disk, through diagnostic test, and I had to replace my Desktop’s Hard Disk too! But this time, I am lucky.. Got it done before the Warranty expired! J I’m not alone in such world of D(h)ell!!! My friends in India after their experience with their DELLs tell me such similar experiences!! I wondered what made me buy Dell?? A lightning struck my mind and gave the answer --- DELL Direct!
What is it??
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 'direct.' This model helps Dell focus on the price for performance, customization, service and support. Focusing on cost leadership has allowed Dell to sustain a competitive advantage in the PC market for the last few years. 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. Dell's 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. Dell's value chain allows Dell and its suppliers to exchange information and interact with each other. The Internet, Dell's key IT factor in its success, results in lower costs to customers than other retailers because customers tell Dell precisely what they want and Dell builds PCs for the customer without experiencing inefficient resources in production. It is obvious that Dell's competitive advantage is due to its direct model success. Through Dell's IT performance, which combines its resources, its relationship with suppliers and its consumer communication capabilities, Dell has developed a big advantage over its competitors. So in order to purchase a Dell you must deal with them directly, there is no going to an outside retailer to buy a Dell. By doing this Dell can save the consumer a whole lot of money. Because of this competitive advantage Dell has been able to grow tremendously over the past few years!!!! But Dell… remember the basic fact, if the components are of not good quality and perish soon….. You are also bound to perish!!!!
-TEJ
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