What I learned from class:
Supply chain strategy is essential for competitors in the PC market. It can identify and quantify supply chain improvements and assist PC makers in transforming their operations, from suppliers to the ultimate customer, to enable real strategic change and competitive advantage. Differentiation is also an important source of competitive advantage for PC makers. It distinguishes the differences of a product or offers from others, to make it more attractive to a particular target market.
Relevant Article:
Can Michael Dell Refocus His Namesake?
http://www.nytimes.com/2007/09/09/technology/09dell.html?ref=technology
As Dell has seen its stock price collapse, slowing growth and resurgent competition, it has been eschewing its almost exclusive “make-to-order” supply chain model to begin selling and stocking computers in Wal-Mart stores. On the one hand, there is no doubt that, to compete in retail, Dell will need to substantially transform supply chain processes. The direct sales model may not work as well in many international markets, such as China, and in the US the steady progression to laptops over desktops has led more buyers to want some hands-on experience before buying. On the other hand, getting up to speed on the vagaries of the retail supply chain and in-store execution will take Dell some time, and probably cause quite a bit of frustration among shareholders. Some critics have observed it negatively so far. “If you want a definition for cut-throat competition and low margins in the technology world, it would probably involve three words: consumer, Wal-Mart and desktop,” said one Wall Street Journal commentator. However, in my opinion, whether it can in fact lead to improved financial performance really depends on how well Dell manages this supply chain transition.
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