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It has been said that the advantage that leading-edge retailers such as Dell and Wal-Mart have
over their competition isnt technology, its their management. Do you agree? Why or why not?
Solution
I absolutely agree. It is true that certain technology, such as Wal-Mart's continuous inventory
replenishment system, can give certain firms a competitive edge to start. Over time however,
other firms in the industry will be able copy and adopt similar technologies. What really sets
firms like Wal-Mart and Dell is the business models they have created, for example Dell's
direct-sales approach to the marketing of their products, and specifically their ability to adopt
radically different business processes which leverage the technology at their disposal. The
creation of business models and the shaping of business processes are management
responsibilites, and thus management should receive credit for the successes of both Wal-Mart
and Dell. (D.B)

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  • 1. It has been said that the advantage that leading-edge retailers such as Dell and Wal-Mart have over their competition isnt technology, its their management. Do you agree? Why or why not? Solution I absolutely agree. It is true that certain technology, such as Wal-Mart's continuous inventory replenishment system, can give certain firms a competitive edge to start. Over time however, other firms in the industry will be able copy and adopt similar technologies. What really sets firms like Wal-Mart and Dell is the business models they have created, for example Dell's direct-sales approach to the marketing of their products, and specifically their ability to adopt radically different business processes which leverage the technology at their disposal. The creation of business models and the shaping of business processes are management responsibilites, and thus management should receive credit for the successes of both Wal-Mart and Dell. (D.B)