| When Dell came into the market it was a high threat | | | | helps with competitive advantage because it is very |
| of substitute products or service for Sun | | | | difficult for companies to guarantee a delivery time. |
| Microsystems. Dell on the other hand had a low threat | | | | The manufacturers tap into Sun's order-processing |
| because not many other companies came out with | | | | system and generate a customer invoice and shipping |
| customizable personal computers. It was easy for Dell | | | | order for the customer. They also assemble, configure, |
| to enter the market because it was one of the first | | | | and test your system before sending it directly to you. |
| companies to provide those products. So there was a | | | | The delivery time has made the company become |
| high threat of new entrants, but now that many | | | | much more efficient. This created an information |
| companies are providing customizable computers it will | | | | partnership with its supplier manufacturers. |
| be more difficult for new companies to enter the | | | | Customer relationship management uses information |
| market. There is a high rivalry among existing | | | | about customers to gain insights into their needs, |
| competitors in the computer market because you can | | | | wants, and behaviors in order to serve them better. |
| only sell so many computers. Each company is after | | | | The Principal's efforts are a great example because it |
| the same customer and they need to compete to get | | | | gathers information such as age, marital status and |
| the customer's attention. | | | | family status, salary, and benefits about their |
| I think that Dell had a similar impact on other computer | | | | customers. This information helps the company to |
| vendors in the same server market because Dell was | | | | advice customers on how to control their money. |
| on of the first to come up with customizable | | | | Information technology within Principal is both top and |
| computers so all the other vendors were hit just as | | | | bottom line. The IT support fast turnaround times for |
| hard as Sun Microsystems. Sun's supply chain now | | | | transactions and is used to find information about |
| very closely mirror's that of Dell Computers. Both are | | | | customers. So for top line to reach new customers |
| shorter. I think it is wise to mimic a competitor relatively | | | | and offer new products that will relate those |
| closely, at least in the computer field. If both companies | | | | customers, and bottom like to optimize manufacturing |
| have a shorter supply chain and can lower costs than | | | | processes and successfully process almost 1 million |
| in the eyes of the consumer quality and price are the | | | | online transactions per day. Principal's focus is to grow |
| elements being compared. This makes the | | | | and increase market reach, product and service |
| competitiveness and playing field fairer. Blockbuster is | | | | offerings, and expand market share. Principal's |
| now doing the same with Netflix. A customer is able to | | | | strategy would be focus because it does so much |
| get a movie sent to the house and keep if for as long | | | | research on its customers to offer products and |
| as they want with no late fees. The convenience | | | | services to a particular market segment. Principal |
| appeals to people. Customers feel less rushed and are | | | | focuses on customers in need of financial advice |
| not throwing away hard earned money on late fees. | | | | mostly for retirement and the specific advice to fit |
| Sun's collection of software can be an integrated | | | | those customers. |
| interface. The collection integrates information, provides | | | | Principal could use an ERP system just for software |
| one suite of applications, and cuts the supply chain | | | | to organize and make their award wining information |
| shorter. Organizations have to be very organized in | | | | technology more efficient. I think as service offerings |
| the process of getting different vendors to talk to | | | | become more and more popular, there might be a |
| each other. By knowing which vendors do the best | | | | need for a service version of ERP so the companies |
| work they can order from specific vendors and keep | | | | that do not have physical products can still gain from |
| the chain running smoothly. | | | | resource planning. If I was considering the financial |
| Sun now does customizable personal computers. | | | | services needs of a customer, I would want to know |
| They have increased efficiency in the supply chain so | | | | job history, real estate, education after college, driver |
| that the product is delivered to customers within the | | | | history, and general interests. |
| promised time 95 percent of the time. This greatly | | | | |