Dell - StrategicManagement MatchingDell OverviewofLastClass

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Strategic Management Matching Dell
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Overview of Last Class Business strategy  refers to maximization of profits within a  business unit A firm has a  competitive advantage  in an industry if it  creates more value than the average rival in the industry We will measure competitive advantage by  accounting  profitability Firms may capture value by following  low-cost or  differentiation strategies , and addressing a  broad or  narrow market scope A firm’s choice of strategy requires it to analyze and  tailor  its  activities  and make  tradeoffs
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Dell - Questions How did the personal computer industry come to  have such low profits? What is Dell’s competitive position? Low cost or differentiated? Broad or narrow? How does Dell’s position help it deal with the  adversities of the industry structure? Exactly how much is Dell’s cost advantage? Why is Dell struggling in 2006?
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Dell’s cost advantage in 1996 Assumptions Explanation Dell Price $2313 Avg. 1996 quart. figures, Ex. 10b Dell Gross Margin 21.5% FY97 column, Ex. 6 Decline in component prices 0.6%/week 25-30%/year, p. 94
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This document was uploaded on 11/04/2011 for the course BUSI 471 at UNC.

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Dell - StrategicManagement MatchingDell OverviewofLastClass

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