Dell waits for competitors to come up with something new and then it devises a strategy to produce the same product for a cheaper price thus the company ends up snatching the market share from their competitors. The primary activities of the value chain include inbound logistics that is bringing in the raw material then operations signify manufacturing of products and outbound logistics reflect delivery or distribution.
The marketing and sales of these products enhance the long term brand equity in the market and after sales services are essential to generate goodwill. Dell uses standard raw material except that they have to tend to a few customizations by the customers but the basic material is standard and manufacturing is assembly line based thus it takes around seven minutes to produce a computer and then it is shipped directly to the customer who placed the order. This shows that Dell has created value for their customers through customization and this saves them the costs of stocking, research, sales through retailers and also the cost of placing their product on shelf. The technology development helps them to shrink their inventory turnover and also manufacture in lesser time in order to deliver the computer in an incredible pace and time. They have human resources to help them assist their customers via telephone or face to face and the firm infrastructure enables it to follow this business strategy that is unique and successful. Procurement is good since they have an excellent supply chain process and management. Thus these supporting activities allow Dell to successfully implement their business strategy and create value through their core competencies. They managed to create value due to which they have been the leader in the market and making sizeable profits.
These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.