Matching Dell

1. What is dingles strategy and competitive advantage in the PC disdain?

You could substantiate started with a five dollar bill forces analysis of the PC sedulousness to show why its hard for most firms to make specie and then suck Dells business model, explaining how it differs from the others and how these differences have given Dell a competitive advantage that lessens or allows Dell to bar the margin pres authentics that the other firms must deal with. Regardless of how you describe the strategy or explain the advantage, you need to assess how sustainable it is.

The prospects for making money are generally low

We did a five forces analysis briefly in class, exactly you might have done a more detailed analysis. Make sure that you address all forces: suppliers, customers, entrants, rivals, and substitutes.

* Supplier power (of Microsof & Intel) is truly high. Though supplier power is relatively low in the mid eighties, over time, the Wintel combination begins to become quite dominant. As a result, these two suppliers are able to sustain precise high margins.

* Substitute power is low but growing. For substitutes you could bear on things ranging from Network PCs, workstations, to PDAs and the abacus, but the point is this force is not (yet) very high - because they are all imperfect substitutes, for various reasons - but its growing.

* Most important to note are the forces of entry, rivalry, and customers.

Entry is easy. The PCs open architecture and common standards - first IBM (recall early PCs were called IBM clones) and later Wintel - have make entry easy and many competitors have joined the fray.

Rivalry is intense. The availability and attractiveness of common standards (given the need for a PC to decease as many applications and work with as many peripheral...

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