Dell has been very successful in all aspects but its competitors are also very strong and trying to beat the company with their full potential. For that, the competitors have designed strategies to beat Dell in every way possible. A competitive strategy is basically an action plan to demolish the competitor’s actions instead of creating newly designed procedures. (Sawka 2007) these multinationals have designed a set of procedures to beat Dell in competition. For this, they have drawn a list of competitive advantages and set strategies accordingly. For example; previously, HP was trying to beat Dell in the fields in which Dell is strong enough to compete, but now, they have a new strategy plan in which HP will retain its force to focus on the areas in which Dell has no presence and will focus on the strength and retail store production sales. This helped HP a lot in surpassing and taking lead from Dell since 2003 in direct sales.
The competitors of Dell compete in different capabilities. The word “capabilities” is a very strong word which consists of the moves made by the company, people working, technology and processes made and implemented, technology used, organization, and services offered. Capabilities of a company can be improved through new launch of products and little innovation carried out. For example, as competitor’s response to Dell’s share gain devices and cost-reduction; HP and Compaq merged their pc system, while IBM sold its pc system to Chinese Lenovo.
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