Dell’s Competitive Advantage One of the sources of Dell’s initial competitive advantage can be attributed to its famous direct selling and build-to-order approach. This just-in-time (JIT) strategy allowed it to operate with the lowest inventory level in the industry. Reducing excess inventory provided Dell with a significant cost advantage as component costs depreciate as much as 1% weekly in the electronics industry. Direct selling has also allowed Dell to bypass intermediaries such as wholesalers and retailers, reducing costs even further. In addition, Dell offered customizable options that proved to be customer-centric and attractive. Dell’s global force of 200 suppliers had access to automated and real-time information such as demand trends and volume expectations for different components. This close relationship with suppliers and the direct selling model has allowed Dell to balance demand and supply remarkably well. Dell conducts its business operations worldwide in many different foreign markets. One of Dell’s motivations to internationalize was to secure supplies and gain access to low-cost factors. Dell situated manufacturing plants across the world, seeking out location-specific advantages such as low labour costs and highly productive workforces. The manufacturing operations are also in close proximity to important regional markets to minimize delay between purchase and delivery. Dell’s choice of locations had indeed armed it with an initial competitive advantage. Product Development Dell focus on developing standards-based technologies that incorporate highly desirable features and capabilities at competitive prices. it employ a collaborative approach to product design and development where their engineers, along with direct customer input, design innovative solutions and work with a global network of technology companies to architect new system designs, influence the direction of future development, and integrate new technologies into their products. Through this collaborative, customer-focused approach, they strive to deliver new and relevant products and services to the market quickly and efficiently. they are continuing to expand their use of original design manufacturing partnerships and manufacturing outsourcing relationships to generate cost efficiencies, deliver products faster, and better serve their customers in certain product categories, customer segments, and geographical areas. Supply chain strategy The Dell business model is a simple one. "Eliminate the middle man". Dell sold its computers directly to customers with no retailers in the middle. Customers are able to order a customized computer that fits their needs. Customers like universities, large corporations, and government agencies all have different needs when it comes to computers. Dell also kept this strategy with its