Dell, previously the world's number one PC manufacturer, has seen its market share shrink because of rivals copying its value chain and reducing the price advantage it enjoyed over rivals. Dell's present struggles:
A) underscore the importance of continually assessing a firm's strategic position among changing market conditions.
B) are a result of rivals adopting supply chain management of software products that have yielded competitive advantages.
C) imply that if a firm's value chain helps to create and strengthen other strategic assets over time, it can be a key source for competitive advantage.
D) highlight the fact that scale advantages of an established firm are a huge factor in discouraging newer entrants to a market.
E) demonstrate that resource-based thinking can help firms avoid the trap of carelessly entering markets simply because growth is spotted.

Question

Quizplus · Accepted Answer

Dell's struggles highlight the importance of continually assessing a firm's strategic position among changing market conditions. As rivals copied its value chain and reduced the price advantage Dell enjoyed over rivals, it failed to adapt to the changing market conditions, which led to a decline in its market share. This emphasizes the need for firms to continuously evaluate their strategic position to remain competitive.

Dell, Previously the World's Number One PC Manufacturer, Has Seen