Competitive Advantage at Dell, Inc Term Paper

Pages: 3 (829 words)  ·  Bibliography Sources: 0  ·  File: .docx  ·  Topic: Business

Competitive Advantage at Dell

What are the advantages to Dell of having manufacturing sites located where they are? And (2) what are the potential disadvantages?

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Dell's global manufacturing strategy that includes having manufacturing locations in the United States, specifically in the states of Maryland and Texas. In addition Dell has manufacturing locations in Brazil, China and Malaysia as well. Each of the se manufacturing locations provides a unique competitive advantage to Dell in their core business of producing personal computers, laptops, and servers. The first and greatest advantage is the proximity each of these manufacturing locations are to their larger bases of customers. The U.S. market, which continues to be a dominant source of Dell revenue, has two manufacturing centers so that customer orders will be able to be fulfilled quickly. In addition, Dell relies on these two manufacturing centers, as they do with all manufacturing locations, for minimizing the supply chain costs and time constraints involved in inventory management of critical components. The proximity of manufacturing locations in the U.S. To customers on the one hand and to suppliers on the other makes it possible for Dell to synchronize their supply chain with the demands of customers, thereby reducing inventory carrying costs and realizing cost savings as a result. Manufacturing locations in Brazil, China and Malaysia all also fulfill strategic roles of being supply chain hubs for Dell, close to many of their suppliers. Over half of the 200 suppliers that Dell relies on for production of their personal computers, laptops and servers are offshore from the U.S., making the development of manufacturing centers in Brazil, China, and Malaysia critical.

Term Paper on Competitive Advantage at Dell, Inc. Assignment

The two locations in China and Malaysia are particularly strategic to Dell in that over 50% of its suppliers are from this region of the world. The company-wide strategy of seeking to synchronize its supply chain with customer demand to attain higher levels of inventory control and attain globally the production of customized computer systems, laptops, and servers at the efficiency levels necessary to be profitable makes global manufacturing centers critical. China and Malaysia, apart from the cost savings due to lower labor costs there, in conjunction with the ability to learn about the customer needs in these regions of the world also underscore the advantages of having production centers located in these regions. Dell continues to focus on global expansion of all of its product lines, and having production centers in these Asian countries also helps the company learn what unmet needs… [END OF PREVIEW] . . . READ MORE

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