A core competence should be difficult for competitors to imitate. A core competence must be unique. For example, Dell has a very strong position in personal computing market which include core competencies like online customization of each computer built, good manufacturing and distribution quality, minimization of working capital in production process. Core competencies have the capacity to desegregate and synchronize different groups in the company. While a company may be able to employ perfectionists in a particular technology, by doing so it does not have a core competence in that technology, it is the synchronization between all the groups involved in bringing a product to market that results in a core competence.
Gadgets like Smartphone, tablets, iPods and many more handheld devices that have almost the same features as of personal computers. These devices are also thin and are trendier making the personal computers more and more obsolete. So to regain the market share of the personal computers they must differentiate it. Thus schools, large businesses, Government who buys personal computers in large amount have the power to bargain on price and quality. The manufacturers of the computers have to differentiate their product to reduce the threat of buyers.
Apple has a strong brand image, innovation and customer service making it different for new entrants to compete against. Threats of substitutes: it not necessary the same products offered by other companies, but rather different products that satisfy the same need as the product being offered. If a supplier increase their prices, a company with differentiated product can pass that cost to its customers. Since Apple competes as a quasi-monopoly in its market segment, Buyer power: in general, the more customers a company has the less barging power each customers will have, and it switching costs are high, then buying power substantially decrease. Since the company competes as a quasi- monopoly in its market segment, there is a reduction of the buyer's
Rivals maintained the traditional strategy in which they sold primarily through distributors, resellers, and retail sites. Dell gave customers high-performance PCs at a relatively low price thanks to the Direct Model. Another advantage Dell had was their low reliance on any one customer. Not one customer represented more than 2% of Dell’s sales. Their structure was very strong as well with multiple managers coming from backgrounds of experience.
In 1988 Dell market capitalization grew from $30 million to $ 80 million. In 1989 Dell came up with its first laptop computer the 316LT, and in 1992 the company was included in Fortune 500 of world’s largest companies, making Michael Dell the youngest CEO of a fortune 500 company. In 1994 the company introduced the Dell PowerEdge server line and Lithium-ion battery. In 1995 Dell expanded its operations worldwide in Europe, Asia, and Japan. In 1996 Dell began to sell computers through its websites.
The sociocultural segment also important associated with the sales of Apple Inc.’s products. In the several eastern countries, the sociocultural segment may impact consumer’s selection of smartphone products. Because some of Apple Inc. products’ features do not suit the lifestyle of eastern countries’ consumers. Instead, Apple Inc.’s products are suited to the lifestyle of western countries’ consumers. In addition, Apple Inc. may utilize African countries market, since those countries are such a great market opportunity for Apple Inc. which people are still curious and inexperienced on Apple Inc.’s products.
The company is able to deliver products according to retailer’s request improving its reputation as a “Good Shipper”. After acquisition, Newell transfers its technology to acquiring companies in order to deliver the products in the most efficient way. Acquiring companies learn new technologies from Newell and they both are able to develop the process. The company put through a process of streamline as known as “Newellization”. Growth through acquisition is extremely profitable to Newell’s corporate strategy.
How about quad core microprocessor technology? Not as many companies, but you have Intel, AMD, ARM, and a host of companies building custom quad core processors (Apple, Samsung, Qualcomm, etc). So again, not much of a competitive advantage. Competition from competing technologies and easy access to IP mitigates the perceived competitive advantage of any particular technology. Android vs iOS is a good example of how this works.
Damaging image by infringements; few of the recent incidents affected its brand image negatively. Too large product diversity (Lack of focusing on specific one); it takes a lot of work if the product portfolio is large. It cannot be possible to give concentration to each product with utmost importance. Heavily dependent on consumer electronics; dependence on consumer electronics is higher than other manufacturers. Lack of own operating system; like apple IPhone, it does not have its own operating system.
It becomes a big company of more than 35.000 employees and over 25.000 million dollars’ sales in 2000, competing with industrial beasts such as IBM and HP. It`s not a surprise that Dell was the most trendy company of US and third most admired company worldwide in 2005.6 _______________________________________________________________________________ 1. History of the Dell company http://www.fundinguniverse.com/company-histories/dell-inc-history/ 2. Nancy F.Koehn Michael Dell: Winning on the Demand Side of the Information Revolution http://economicstrategy.org/wp-content/uploads/2014/01/9-801-363.pdf 3. Interviwie with M. Dell «Taking The Direct Approach» https://www.entrepreneur.com/article/197566 4.