Dells Online Competitve Strategy Essay Example | Topics and Well Written Essays - 3250 words

Dells Online Competitve Strategy - Essay Example The objective of this paper is used Dell computers as a case study to explain how information systems can be used as a competitive strategy to respond to competitive forces, to improve its competitiveness, to achieve and sustain competitive advantage. The literature review is divided into 3 parts. The first part explains Porters competitive forces model. The second explains briefly the competitive strategies. The third part is used Porters value chain, model. The threat of new entrants depends on the degree of the barriers to entry. If the barriers to entry are high, the threat of entry will be low and vice versa. Consequently, in order to deter new entrants from coming into an industry, firms cultivate unique or capital-intensive resources that new firms cannot easily duplicate (Shin, 2001). The threat of substitute goods depends on the availability of alternative goods or services in the market. The more alternative goods or services in the market, the higher the threat of substitute good and the lower the market share and total revenue ascertained by the firms in the industry and vice versa. Therefore, in order to increase revenue and market, products will have to be unique and well differentiated. This force determines the level of control a supplier has over the price of its product. Since, the more alternative suppliers in the market, the lower the bargaining power of the suppliers and vice versa. Thus, in a market with few suppliers, a supplier is able to achieve the desired level of profit due to a significant