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The purpose of this essay is to apply theory of resources and capabilities in strategic management to PC Company, DELL to analyse how it create competitive advantages in computer industry. In order to do that, I will display three parts in this essay. The first part is about my own understanding related to meanings of resources and capabilities, such as resource-based view etc. The second part is about applications of the theory in DELL internal environment. The third part of future challenges in DELL will be illustrated. The essay will begin by giving brief explanations of the terms of resources and capabilities within organisations.

Both resources and capabilities are key factors to determine a company’s future and can create competitive advantage over its competitors to survive longer and better within its industry. According to Grant (2005), “resource-based view is the idea that the firm is essentially a pool of resources and capabilities, and that these resources and capabilities are the primary determinants of its strategy and performance.” Thus, companies focusing on resources and capabilities can bring in sustainable competitive advantages and can help to form strategies that exploit external strengths while defending against internal weakness (Grant, 2005).

From resources perspective, it is essential to know that two types of resources, tangible resources and intangible resources are owned by a company. For tangible resources, it mainly refers to physical assets, such as equipments, raw materials or employees. For intangible resources, it mainly comprises a company’s history, reputation, technology and intellectual resources. Both tangible and intangible resources can be seen as inputs into a company to help it create value and advantages within a company. Within the same industry, all participants can occupy the https://www.51lunwen.org/mba/2012/0221/1101289173.html same resources but when they process the same resources in different ways within its internal environment, all participants will witness different values created by same resources. So the ways to utilize resources can determine a company win or lose.

From capabilities perspective, the ability of utilizing resources to create values for a company can create competitive advantage or capability and we can not separate resource from capabilities as a company’s capability is an integrated result of many complex factors, including resources, values, procedures and activities within a company. According to Johson, Scholes and Whittington (2007), different companies have different capabilities which are difficult to imitate and is the basis of creating competitive advantage over its rivals. In addition, both resources and capabilities have much more relations with internal environment of a firm and those two factors are the most important determinants for a company’s profit and sustainable strategy.

All those above are implications given to me from the perspectives of resources and capabilities within a company. After that, I will discuss how DELL applies those two different perspectives to its internal environment and industry.

DELL was founded in 1984 by Michael Dell and follows a simple philosophy: creating a computer in accordance with customer requirements and direct shipping to customers. DELL can make the most effective and clear understanding of customer needs, and then respond quickly. After more than 25 years developing, DELL has grown into the industry’s fastest growing, most profitable comp本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。