Value Chain Analysis Of Dell

Introduction

Dell Inc., named after its founder, Michael Dell, is an American privately owned multinational computer technology company. It began in !984. The company is based in Round Rock, Texas. It is one of the largest technological corporations in the world, with more than 103,300 employees.

Dell entered the IT market in 2009. It is the sixth largest company in Texas, by the total revenue. Dell is known for its innovations in the field of supply chain management and e-commerce. These include the direct-to-sales model and its build-to-order concept for manufacturing. Dell deals with design and development, marketing, sales, manufacturing, and the support and base of miscellaneous computer systems around the world. It is the world’s third

The company is growing steadily through mergers and acquisitions, and expanding its client base.

Dell Value Chain Analysis

A value chain analysis is an analytical framework that abets in recognizing business activities that build value and competitive advantage to the company. It was first proposed in 1985, by Michael Porter. There are two parts of the value chain analysis: Primary activities and Support activities.

Primary activities include inbound logistics, operations, outbound logistics, marketing/sales, and services. These activities are concerned with the core of the chain to comprehend the direct value.

Support activities include infrastructure, human resources management, technological development, and procurement. These activities support the course of value creation at the center of the value chain analysis.

Dell has employed several differentiation strategies by discerning its activities through arrangement of a higher quality of production than its competitors. The sequence of Dell value chain analysis has been broadly copied by competitors, as well as non-competitors. It has also been imitated by companies not in the consumer technology industry, due to its benefaction to the success of the

It is a plan of attack to accomplish competitive advantage. It commenced in the 80’s and 90’s. It says that companies should find the origins of competitive advantage inside their own company. According to this model, it is much easier to take advantage of extraneous opportunities using already existing resources in a different, new way than to obtain new skill sets for every new opportunity. It is a beneficial perspective used for understanding the activities for strategic management. RBV can be seen from two perspectives: internal analysis of competitive advantage within the company, and external analysis of the industry and its environment.

As seen in the VRIO analysis, the resources must be evaluated in terms of how valuable they are, their rarity, and how hard they are to imitate. There are three main types of resources. They are tangible resources, intangible resources and organizational capabilities.

Tangible assets: Tangible assets consist of physical things. These include land, machinery, capital and buildings. All of these assets are physical, and therefore tangible. Tangible assets can be easily bought and sold in a real life market, resulting in little advantage in the long run, as they can be easily accessed and imitated by