BUSINESS STRATEGY

WHICH OF THE THREE STRATEGIC BUSINESS STRATEGIES IS USED? IF DIFFERENTIATION, THEN HOW DO THEY DIFFERENTIATE THEIR SERVICES / PRODUCTS? 

Dell Computer works with overall cost leadership strategy. Dell eliminates wholesale and retail dealers to eliminate unnecessary time and cost. Dell built its computers, servers and workstations according to customers order, not from inventory. Dell customers are able to order custom-built computers, servers and workstations according to their needs. Overall leadership strategy enables Dell Company to provide customers with high quality, relevant technology, customized system, and superior support and service. 

ESTIMATE HOW MUCH POWER OF EACH OF THE 5 FORCES HAS. HOW DO THEY REDUCE THE BUYER AND SUPPLIER POWER? HOW DO THEY CREATE SWITCHING COSTS AND ENTRY BARRIERS? 

Supplier power is the opposite of buyer power. When buyers have many choices then buyer power is high but if buyers do not have many choices then buyer power is low. It is totally opposite for supplier power. If buyers have many choices then supplier power is low but if they do not have many choices then supplier power is high. Companies try to create a competitive advantage to make it more attractive than their competitors. Dell Computers do the same. They use IT enable processing to reduce their buyer power. 

| There are many other computer companies. But Dell Computer based on built to order manufacturing. It is more attractive than the others. Because if you order a computer from Dell, you know that you can customize it according to your needs and you also know that you will get it in few business days. 

WHAT MAJOR BUSINESS INITIATIVES ARE USED OR BEING CONSIDERED? WHAT SOFTWARE IS USED? ARE THEY TOP LINE OR BOTTOM LINE?

Dell Computer’s supply chain management is the envy of this industry. It gives the company an advantage over any competitor while they are still using a traditional model of selling through retailers. Usually computers sit in the warehouses till buyers come and take them. But Dell sells their computers directly to buyers. They do not deal with retail stores or other problems. Skipping retail stores and selling computers directly to the customers reduce unnecessary time and cost. 

Supply chain management system is an IT based system. It supports management activities by automating the tracking of inventory and information among business processes. Supply chain management dominated by ERP softwarer like SSA Global, Oracle, SAP and Microsoft. ERP system is successful in transportation, sales and distribution, production, accounting, manufacturing and financials.