Corporate and business strategy in an international context - Coursework Example

Michael Dell emphasized upon maintaining a flexible resource base so that rivals could not match the business model. The strategic focus of Michael Dell’s business model was managing opportunities. Dynamic capabilities enabled the company to meet this objective. Michael Dell converted other resources and capabilities into a distinctive competency by focusing upon adaptation and change. The industry in which Dell operated was characterized by a constant pace of change. Therefore the management needed to focus upon developing a sustainable future by continuously improving firm competency.

To this end the dynamic theory was applied. The company maintained a reconfigurable resource base so that a flexible combination of uncertainty and commitment-intensity could be made feasible. In this manner, Dell was able to maintain its market leadership. Firm performance was characterized by the direct model which was different from the business models implemented by the competitors. Although the competitors tried to implement Dell’s business model, they could not develop the same level of firm competency because Dell had already built an organizational capacity for response, reverse and contingency in this area.

This allowed the company to maintain competence-generating strategic processes geared towards continuously renewing the competitive advantage. As a result Dell was well-positioned for changing future conditions. The PC industry was structurally attractive since it had the largest share of the industry. However the profit margin was not so great compared to those from microprocessors, software and services. Therefore Dell had to maximize its unit share in order to maximize profitability. This objective was met through tailoring the production system to customer requirements.

The investments in online technology and JIT enabled the company to