The Way To Match Dell
The Way to Match Dell
Introduction of PC Industry
The personal computer (PC) industry first began to take shape in the early 1980s. The founding companies manufactured most of the components themselves—disk drives, memory chips, mother boards…As industry develops fast, in the early 1990s, computer makers such as Compaq, IBM and Hewlett-Packard began to abandon vertical integration in favor of a strategy of outsourcing most components from specialists and concentrating on efficient assembly and marketing their brand of computers. They adopted the build-to-stock value chain model, keeping arm's-length transactions between specialist suppliers, manufacturer, distributor, retailers, and end users. This scale manufacturing resulted in low average profitability. As a result, the PC industry inevitably became a red ocean. However, in the mid-1990s, Dell Computer Corporation made a miracle in creating a blue ocean by employing a shorter value chain model, selling PCs to customers......
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