Elements of Strategy

1. Elements of Strategy • Cost Efficient Build to Order • Competition has tried to emulate with limited success • ýAlthough other vendors have not replicated Dell’s strategy, they’ve done enough to close the cost advantage gap. • ýDell’s lean manufacturing techniques work best in production of desktop PCs. Consumer tastes have shifted to laptops. • Dell’s Strategy Contribution towards a future competitive advantage… Cooling Warming

2. Elements of Strategy • Partner with Suppliers • ýIBM, HP, Sony, Toshiba, Fujitsu abandoned vertical integration for strategic outsourcing of components in the early 1990s. • Partnering with suppliers to utilize their expertise is a given at this point, no contribution to competitive advantage. • Dell’s Strategy Contribution towards a future competitive advantage… Cooling Warming

3. Elements of Strategy • þCompetitors have not been able to shorten their supply chain as effectively as Dell • þCompetitors have had difficulty implementing the sell direct strategy because it cannibalizes other sales channels. • ýDisadvantage in some foreign markets where small business and individual customers want more of a hands on shopping experience. • Dell’s Strategy • Direct Sales Contribution towards a future competitive advantage… Cooling Warming

4. Elements of Strategy • ý • Dell’s Strategy • Expansion of products and services Contribution towards a future competitive advantage… Cooling Warming

5. Elements of Strategy • ý • Dell’s Strategy • Customer Service and Technical Support

6. Elements of Strategy • ý • Dell’s Strategy • R&D focused on customer needs

7. Elements of Strategy • ý • Dell’s Strategy • Use of Standardized Technologies

8. Elements of Strategy Contribution towards a future competitive advantage… Cooling Warming