Dell broke into the big time by developing a business strategy and supply chain strategy that worked together. In the late 1980's and early 1990's Dell's business strategy was differentiation through low cost, speed of delivery, and customer service. The major channel for sales was from customers to call centres. However, the emergence of the internet called for more differentiation and fundamental change. With a well understood business strategy, Dell began to formally integrate operational components (e.g. , logistics, manufacturing, distribution, inventory management ) and develop a supply chain strategy. The supply chain strategy focused at driving costs out of the supply chain –being the low cost provider – while at the same time supporting a business strategy emphasizing customer service. A business strategy creates a vision and direction for the whole organization. It is important that all people within a company have clear goals and are following the direction, or mission of the organisation.
1. Explain the vitality of a strategy on businesses like Dell