information systems - Daniel Shute Dr. Lu Information...

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Daniel Shute Dr. Lu Information Systems DELL Computers In today’s society, most companies have a distinction with the Internet. Whether it is just a web page, online advertising or online sales, companies relate to the internet to get their product known worldwide. Amazon.com for example is a totally web based company, who offers one-click online shopping that licenses its products to other online retailers. Google.com is another example of an online search engine that uses online advertising in text ads. That is a huge amount of advertising, when there are about two billion searches placed a day on Google. One company that has really changed to the internet these days is DELL Computers, because of its strategic business model and sustained competitive advantage over most other internet related companies. DELL Computers recently changed over their company to being totally internet related a few years ago. It focuses on four different parts of its effective business strategy which are new market entrants, substituted products and services, customers and suppliers. This paper will not only focus on those four stages of the business model, but it will also talk about what DELL Computers must do to keep their competitive advantage in the marketplace. New market entrants basically deals with the entry of new businesses. Factors that must be considered are what kind of a business that you are going into. For example, starting a small pizza business is simple. All you really need is a building for it and little knowledge on running a business. A computer business on the other hand is much more difficult to start. There are high capital costs, high entrance fees and much knowledge in not only the computer field, but the business field as well. Sometimes it is good to be the new company on the block, but most strengths or a new company are its weaknesses. For example, they can hire young workers, but then they lose the experience factor. Another thing is they can use all new resources, but then the company has to pay huge amounts of money
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for that, and rely on outside sources to get it. This is good for DELL Company, because as stated before, it is hard to start a new computing business. With all of the knowledge that DELL Company has and all of the wonderful resources it holds, why would anyone want to change from a high know DELL company, to a small shop around the corner. Substitution of products and services is a very big deal in a company. Every product out there always has a substitute to it, and for DELL Computers, it would be other computer companies, along with Macintosh computers, UNIX, LINUX, etc. It is important for DELL to offer cheaper and more resourceful computers to customer who might want to pay cheaper, or have a specified amount of RAM
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information systems - Daniel Shute Dr. Lu Information...

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