The Competitive Advantage of Dell Company

Competitive advantage can only be achieved when a firm has unique products or services that are different from its rival companies and cost leadership which entails producing the best products and services at affordable costs for the consumers, hence becoming a low-cost producer in a market (Porter, 1998, pp 12). One of the unique practice of the dell company is the just in time assembly that involves assembling of the computer only when a customer orders for one, this is essential as it responds to the customer’s demand. The author further explains that the differentiation concept should always involve quality, for instance, dell has always made sure that its components are up to standard and also they offer their customers a choice of computer configuration, thus putting the customer’s interest first.
In addition, dell was the first to develop a direct sales strategy which involved the use of telephone and internet, thus shortening its supply chain and its costs too. It is obvious that dell has in the past achieved competitive advantage through the above strategies. However, a resource can only be strategically important if it is of value, the resource should also be rare so as not to be easily imitable by other rival firms. The resources should be unique so as to stand out, thus making it hard for other firms to possess them. these factors lead to a competitive advantage (EDSM, pp 2).
Resource-based view emphasizes on the capability of a company in achieving a competitive advantage, which is through its resources. in which these resources respond to opportunities and threats in the market, (Zhu, 2009 pp 52). Dell has also been able to utilize the internet and its benefit at a first-rate as compared to its rival competitors, which is an advantage to the company as it is able to attract more customers.