ECO380H1 Lecture Notes - Ipod, Preston Mcafee, Competitive Advantage
Document Summary
Consider the following case study of the dell computer corp. , which you can download from the course page in blackboard. Let me remind you two concepts we discussed during the rst two lectures. De nition 1 competitive advantage is a position that a rm occupies in its competitive landscape. Porter posits that a competitive advantage, sustainable or not, exists when a company makes economic rents, that is, their earnings exceed their costs (including cost of capital). 2. De nition 2 strategy is the way in which decisions are made. For business, strategy is usually aimed at creating and sustaining high positive rents i. e. , competitive advantage. 3. What is the basis on which dell builds its competitive advantage? (5 points) Dell could best understand consumer needs and ef- Ciently provide the most e ective computing solutions to meet those needs by selling computer systems directly to customers. (b) how do dell" control systems help execute the rm"s strategy? (5 points)
