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Traditionally all its competitors like IBM, HP, and Compaq etc. used reseller, retailers and distributors to sell their computers to end users. IBM was the first company to launch its PC in 1981 and soon held 42% of the market. But the growth of IBM proved to be short lived as with Schumpeterian rents when it failed to take any proprietary competitive advantage and ceded rights of the microprocessor and operating system to Intel and Microsoft. Dell through its direct selling approach used to take orders directly from the customers, thus selling customized machines. This proved to be a revolutionary business strategy which would enable it gain cost leadership and competitive advantage in the PC market, enabling the company to eliminate wholesale and retail dealers that proved to be very expensive and wastage of time...
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Common topics in this essay:
- An Investigation Of Dell And Hewlett Packard’S Business Models: How Is Competitive Advantage Created?
- Dell'S Competitive Advantage
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