Dell's Competitive Advantage

Dell was able to create this lasting profitability with three essential ingredients: 1.Virtual Integration 2. Real value customer service features 3. Tailoring Manufacturing to customer needs By bringing in several seasoned managers to focus on specific aspects of the business Michael Dell hoped that Dell could become a synchronized, efficient, and profitable business again. These improvements lead to Michael Dells breakthrough concept of virtual integration, which goes a step further than traditional integration by connecting the right parts together in the business. From this concept three key integrations formed: 1. A symbiotic relationship between Dell and its suppliers; 2. Customers linked directly to manufacturer; and 3. End user were linked to proper customer service assistance. Each one of these measures enabled costs cuts; quicker deliver time, and a more reliable finished product.

POLITICAL Since Tata Motors operates in multiple countries across Europe, Africa, Asia, theMiddle East, and Australia, it needs to pay close attention to the political climatebut also laws and regulations in all the countries it operates in while also payingattention to regional governing bodies. Laws governing commerce, trade, growth,a n d i n v e s t m e n t a r e d e p e n d e n t o n t h e l o c a l g o v e r n m e n t a s w e l l a s h o w successful local markets and economies will be due to regional, national andlocal influence. In accordance, Tatas headquarters in Mumbai, India, strictlycontrols and regulates operations in all dealerships and subsidiaries, in additionto knowing and abiding by all labor laws in the multiple countries where theyhave manufacturing plants it has to watch political change. ECONOMIC Operating in numerous countries across the world, Tata Motors functions with aglobal economic perspective while focusing on each individual market. BecauseTata is in a rapid growth period, expanding or forming a joint venture in over fivecountries world-wide since 2004, a global approach enables Tata Motors toadapt and learn from the many different regions within the whole automotiveindustry. They have experience and resources from five continents across theglobe, thus when any variable changes in the market they can gather informationand resources from all over the world to address any issues. For instance, if theprice of the aluminum required to make engine blocks goes up in Kenya, Tatahas the option to get the aluminum from other suppliers in Europe or Asia whothey would normally get from for production in Ukraine or Russia. Tata Motorsalso has to pay close attention to shifts in currency rates throughout the world Currency fluctuations can equate to higher or lower demands for Tata vehicleswhich in turn affect profitability. It can also mean a rise in costs or a drop inreturns. But they also have to pay attention to not just the domestic currency, therupee, but also to the dollar, euro, bhat, won, and pound, to just name a few. Justbecause the rupee is strong against the dollar does not mean it is strong againstall the other currencies.

Attention to currency is important because it influenceswhere capital investment will develop and prosper. SOCIAL Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders ina company will affect how well a company perform s. This includes everystakeholder from the CEO and President, down to the line workers who screwthe door panel into place,from the investor to the customer, the culture and attitude of all these people willultimately determine the future of a company and whether they will be profitableor not . For this reason, Tata Motors t ends to use an integrat ion and rarelyseparation technique with foreign companies they acquire. In 2004, Tata Motorsacquired Daewoo Commercial Vehicles Company, which was at the time Koreassecond largest truck maker. Rather than using deculturation or assimilatingDaewoo, Tata took an integrated approach, and continued building andmarketing Daewoos current models as well as introducing a few new modelsglobally just as it had been done under Korean management TECHNOLOGY Tata Motors and its parent company, the Tata Group, are ahead of the game inthe technology field. The foundation of the compan ys growth i s a d e e p understanding of ec onomic stimuli and customer n eeds, and the ability totranslate them into customerdesired offerings through leading edge R&D (Tata).E m p l o y i n g 1 , 4 0 0 scientists and engineers, Tata Motors Research a n d Development team is ahead of the pack in Indias market and right with the restof the fi eld internationally. Am ong Tatas fi rsts are the fi rst indigenouslydeveloped Light Commercial Vehicle, India's first Sports Utility Vehicle and, in1998, the Tata Indica, India's first fully indigenous passenger car, as well as theincreasingly famous Tata Nano, which is projected to be the worlds cheapestproduction car (Tata). In the automotive industry, it is becoming increasinglyc rucial for manufacturers t o sta y on top of the

technology curve with newproblems always rising such as escalating gas prices and pollution problems.Tata recognizes this and dedicates lots of resources and time into research anddevelopment to be even with or preferably ahead of other competitors, globaltrends, and changing economies. In all, an automobile manufacturer mustchange, adapt, and evolve to stay competitive in the automotive game, and thisis exactly what Tata is doing with their rapid growth, and extensive research anddevelopment.