Thesis: Dell’s Unique Value Chain Management

Sample Thesis Paper

Dell comes across as a highly unique organization when considered in the context of its value chain. The direct-selling concept exercised by Tesco brings challenges to Tesco that other organizations can rarely expect to face. As a result, Dell is left with no other option but to exercise extensive efficiency and effectiveness in its Value Chain. It is because of the same reason that Dell has no other option but to bring every trick in the book to its maximum productivity. From outsourcing to just-in-time inventory management, Dell utilizes extensive value chain management strategies to ensure that the central product adheres to standards of quality on which no compromise is possible. This is done by manufacturing the core constituents of the computers locally and outsourcing parts of relatively secondary relevance to companies in regions where economies of scale can be used to advantage; such as Asia.

Furthermore, Dell ensures that as few as possible members are present in its value chain. This allows Dell to focus more on the members that it has to coordinate with. Since Dell plays a facilitating role for its value chain members, it comes as no surprise that Dell avoids allowing its value chain to expand in size without a concrete need for the same to occur. By doing so, Dell integrates characteristics in its business model such as the fact that inventory parts are maintained in the inventory for only two days. This is a practice is extensively difficult to follow since ensuring that productivity is not lost in inventory management operations in the same industry remains a challenge for the best of companies.

Dell does not simply exercise a unique value chain management strategy in terms of its internal processes but this management approach persists in terms of its internal value chain members as well. One worker is responsible for the assembly of a complete system unit. Thereby once more ensuring that the risk of losing value in taking a process from one stage to another is brought down to a bare minimum. This also allows Dell to ensure that channelling of resources towards the development of one individual internal value chain member serves to bring forth direct productivity in the assembly of the product.

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