Brand equity or reputation: Dell is a famous computer manufacturer. It has won the trust of consumers with high quality products and considerate after-sales service and has had good reputation on consumers.
3.0 The various changes in the market for computers
With the technology progressing and economic booming. Enterprises face a brand new competition environment. The traditional way of focusing on the inside resources and competitiveness is no longer enough to adjust to their environment. (Fildes R. A., 2011) With the maturing of computer technology, more companies join in this market, making the competition even fiercer day by day, reducing the product life cycle, increasing the product variety. The market demand is hard to predict; only with the ability to grasp the market demand and adjust to it as fast as possible can a company hope to survive. It also forces manufactures to search for management models more actively. Among them, the supply chain innovation and channel switch has become crucial for the improvement of a company’s competitiveness.
When world’s earliest computer manufacturer started, all the components were separately made including peripheral equipment, operating system and application-oriented software. The high degree of integration allowed the manufacturer to integrate within itself, only a few were outsourced.
Tracing back to the 50th of last century, computer companies tried to modularize computer structure, thus leading to Module Outsourcing. In this way, assembly line industries are able to choose the most suitable one according to the quality and price. Afterward, the supply chain becomes crucial to a computer manufacturer. (Shashank R.,2009)A well-organized supply chain management enables a company to use resources from outside rationally, resulting in cost cutting, marketing share increasing as well as the innovation power and competitiveness of a product increasing.