Proposal
Background of the Study
The computer and technology business is well-established and it is now one of the biggest players in the business arena. According to Malowski (1986), advancement in technology that started as early as 1600′s have guided our world into what is at the present called “the information age”.
In the ever-changing environment of the computer industry, competition becomes the major organisational principle of marketing activities. Thus all companies in the industry are challenged to formulate strategies that will ensure them of achieving competitive advantage over other companies. In their attempts at securing a large market share, many computer companies have ventured into e-commerce.
An important internal process in e-commerce is supply chain management (SCM). Companies should identify ways to leverage the Internet in each part of the value chain, from procurement to distribution to delivery. In fact, failure to adopt e-commerce-specific cost savings will likely put a company at a serious competitive disadvantage. Strong supply chain management is often the basis for providing superior service. In the area of procurement, a company can reduce the cost of goods sold by obtaining products through the Internet. Distribution strategies must not only cut costs but also provide the fastest and most convenient customer service. Delivery strategies should maximise convenience and speed for customers, using both the Internet and the company’s existing infrastructure to provide these benefits. The best supply-chain practices, however, depend on the type of offering.
Supply chain management is also, for the most part, a practical area for alliance when the firm cannot just supply online consumers from similar distribution channels like physical stores. Target, Kmart, and Wal-Mart have all made such arrangements in dealing with their general merchandising business. Additionally, CVS also simplified its procurement process for its Web site by entering into a partnership with Merck.com (Epstein, 2005).
Aims and Objectives
The objective of the paper is to analyse how big computer companies, like Dell Computer, survive in the fast moving PC industry and evaluate its SCM practices as tool of their competitive advantage. This would involve a case study of Dell Computer. The case study would include its company background and analysis of its problems encountered.
Dell Computer is a leading company in the computer market. However, with the presence of competitors and in competing in the price war market, this has created a difficulty on the Dell Computer to sustain its previously created competitive advantage. Currently, Computer is facing a tough challenges coming from the new industry standard and the profit of the PC become smaller.
This paper attempts to analyse problems encountered by Dell and suggest strategies which it may adopt to enable it to stay competitive and achieve continuous growth in computer industry. In addition, the paper analyses how Dell Computer can use these strategies to create its innovative and technological competitive advantage. Moreover, this study will also examine the factors affecting the implementation of SCM in the e-business environment and provide guidelines as to the best practices in SCM in the computer industry.
Methodology
A descriptive research will be conducted. Both the qualitative and quantitative approaches (multi-methods strategy) to research will also be employed. Qualitative data will be gathered from in-depth interviews involving select managers in some computer companies. Quantitative data will be gathered from the survey to be conducted with managers. Desk research will also be conducted to supply further information about the topic.
Scope and Limitations
This research centres on the supply chain aspect and competitive advantage of Dell. Other issues regarding the business environment of the company will be also considered. Moreover, issues concerning supply chain problems of Dell and how its revitalisation plan was able to resolve it. The impact of supply chain management practices and collaboration will be part of the discussion in relation to efficiency of the strategic management practices, relations with suppliers, workforce and customer patronage.
References:
Epstein, M.J. (2005). Implementing successful e-commerce initiatives: it’s time to reexamine your investment and figure out how to make it more profitable. Strategic Finance. Retrieved March 13, 2008 from http://www.allbusiness.com/management/business-process-analysis/367893-1.html.
Masloski, T. (1986). Accounting methods altered in mid-19th century. Crains Chicago Business, June 23, 1986, p. T6.
Credit:ivythesis.typepad.com
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