Question

According to Prahalad and Hamel, a core competence provides potential access to a wide variety of markets should make a significant contribution to the perceived customer benefits of the end product should be difficult for competitors to imitate Under this definition, what are Dell's core competencies? How can Dell exploit these competencies to gain or maintain a sustainable competitive advantage?

Answer 1

answer-

Core competencies are those resources and capabilities of a firm which utilized in strategic manner then firm can gain competitive advantage over its rivals. The core competencies of Dell are Its management of cost, speed, quality and strong distribution.

Dell is able to used these core competencies to gain or maintain sustainable competitive advantage by keeping cost of its PC low and improving quality. Dell's resources are more valuable and organized in which Dell take orders directly from customers and cut intermediary cost and deliver them on time under JIT system.

When there are no dealers or intermediaries so cost is low and dell can connect directly with its customers. The lowering of cost makes Dell a Cost leader in the market. Where other company offer high priced and aveg spec laptops and PC on the other hand, Dell uses its financial resources, customers and strong Invetory management systemt to make PC on demand at low cost and customers remain satisfied with price and quality of its product.This leads to maintenace of competitive advantage.