Case 1 Matching Dell
Discussion Questions

1. Draw a product-market structure for Dell’s PC’s. 2. Conduct a Five Forces Analysis of the PC Industry in the late 1990’s. Is the industry structurally attractive? 3. We know that Distinctive Capabilities are apparent in a company’s activities (procedures) give a firm a competitive advantage. Enumerate these distinctive “activities” for Dell. 4. How successful have efforts to match Dell been? 5. What should the rivals do now?

5. What should the rivals do now?
According to the data provided within the case we can see that with the existing models that all companies have adopted dell now only has an advantage in their inventory turnover. According to the statistics provided dell takes around 7 days to get rid of its inventory where as Compaq, IBM, HP and Gateway take 34.2, 49.4, 70.4 and 10 respectively. But the price difference between dells products and its competitors is almost nonexistent. However in trying to cut down the gap in the inventory turnover IBM and Compaq as well as the other rivals are facing problems of not being able to provide the products demanded by the consumers on time. This shows that the strategies adopted by the rivals are not properly being implemented as implemented by dell hence they are inefficient and ineffective.
Hence to tackle these problems there are two strategies according to which the competition can move forward. Firstly the competitors can either work on the flaws which they are facing while trying to adapt dells direct marketing approach. For this it is necessary for them to come up with a new business culture which can incorporate both their direct as well as indirect marketing objectives. Trying to improve their existing models would eventually result in some sort of problems as they are facing right now. The second approach they can take is to instead