Background On Dell Incorporation

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Background on Dell Incorporation
Dell incorporation is a well known name in households and organizations everywhere. This is because Dell is the largest mail order computer vendor in the world due to their high reputation or providing quality PCs to the public at affordable and competitive prices. However, this innovation of PCs would not habe been possible without Mr. Michael Dell, the genius behind this prominent and successful company (Anonymous, 2015). From its inception, Dell has managed to gain and maintain a competitive advantage in the industry of computers. The question then is how does Dell gain and retain this competitive advantage?
According to Dave Schneider, an engineering manager for Dell Americas operations, he states “We [Dell]
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This strategy was developed to replace the traditional boundaries among end-users, suppliers and manufacturers through the use of its technology and information. Virtual integration utilizes mass customization, customer focus, just in time manufacturing and supplier partnerships and combines them to ensure that coordination is enabled. According to Wang et.al (2006), virtual integration is substituting ownership with partnership through the integration of suppliers in an attempt to achieve collaboration in the supply chain. This collaboration with suppliers allows Dell to enjoy the benefits of virtual integration without having to set up their own manufacturing facility. Wang further mentioned that virtual integration can assist manufacturers in attaining a higher flexibility in manufacturing and also to achieve comparative advantage. In addition, Dell gain competitive advantage through its supply chain management by requesting that key suppliers develop inventory hubs in close proximity to their assembly plants. By doing this, Dell could communicate with the inventory hubs of their suppliers in a timely fashion so that delivery is done in a short span of time. Also, Dell’s new PC models could now be brought to the market quicker which resulted in drastic cost advantages (Strickland,

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