Management Paper on Core Competence and Competitive Advantage

Introduction

Competitive advantage entails comprehensive exploitation of company resources so as to effectively position a company to compete. However, other companies believe that competitive advantage is the ability to earn more revenues from investment initiatives. Nonetheless, competitive advantage varies on aspects not limited to enhanced environmental impacts and capturing of greater market segment. Core competence and competitive advantage are closely linked because the latter evaluates internal competitive initiatives while the former highlights on how the company can effectively achieve its goals and objectives strategically. Therefore, marketers opine that it is important for a company to develop its core competencies as failure may lead to derailed competitive advantage (Batko and Szopa 22). The paper discusses core competence and competitive advantage of Dell Company.

Core competencies of Dell

Companies in the process of developing their core competencies must ensure that such capabilities satisfy several conditions. Studies reveal that these conditions include; delivery of superior products to clients, assist in unique differentiation of products which cannot be imitated by competitors and exploration and access of wide market (Kluyver and Pearce 59). Dell is among the world’s best computer manufacturing companies. It specialized in the manufacture, development, design and marketing of computer hardware and printers. The three core competencies for the company include; operating on direct sales that effectively distinguishes the company from competitors. Second, the company also manufacture product of the highest quality that creates value for money for its consumers. Third, the company is operating just-in-time inventory system that ensures timely delivery of products to customers.

Competitive advantages of your Dell

Through direct sales business model, Dell is able to quickly adapt to the market needs to provide rapid and effective services to the consumers. Also, the company is able to reap significant cost advantages because the system eliminated intermediaries. Dell is able to interact one on one with her customers. Also, just-in-time inventory system implemented by Dell ensures that its inventory last for only two hours compared to competitors whose inventory takes four weeks. Computer hardware components ordered by customers comes directly from the company and therefore eliminates outstanding inventory. Dell also stresses much on training of staff in order to deliver superior products faster and effectively. Therefore, customers prefer and value products of the company compared to her competitors.

Positioning strategy

Dell positions itself by effective differentiation on cost basis through superior products and excellent supply chain model. Studies reveal that a company positions itself to achieve sustained competitive advantage when it implements a value creating strategy not simultaneously implemented by current or potential competitors (Doyle 55). The company strategy benefits shareholders, stakeholders, community and society at large. Through this strategy, Dell is able to deal directly with the customers and suppliers who are main stakeholders. To the community and society, Dell has been able to achieve innovations in supply and distribution channels and development of good image and reputation. This has ensured speedy delivery of products to its customers reduces the tendency of customers to switch to competitors.

Conclusion

Dell has effectively developed her core competence and competitive advantage that have been crucial in positioning the company in the market. These competencies have been collapsed into core capabilities that add value to all company activities and value chain. Competencies have strategically been aligned to deal with both internal and external factors. Notably, it is because of these core competencies that Dell has been able to achieve competitive advantage that has also been sustained throughout operation period.

 

Works cited

Batko, Roman, and Szopa A. Strategic imperatives and core competencies in the era of robotics

 and artificial intelligence. , 2017. Internet resource.

Doyle, Peter. Value-based marketing: marketing strategies for corporate growth and

 shareholder value. Chichester: Wiley, 2008. Print.

Kluyver C. and Pearce J. Strategic management: an executive perspective. , 2015. Internet resource.