Who got the competitive advantage??

Competition exists everywhere. From the morning rush hour, when you are trying to find a seat(unlikely) or find a pole to grab on so you don't fall when bus/train are moving; or trying to squeeze in the Baruch elevator; to the classroom of BPL, where we are competiting for our grades. As firms competiting over each to win more customers, more revenue, and more profit. One way to win is to have an advantage. Once the firm has an advantage, it is easier for them win over the competitor. The two companies I choose that have competitive advantage are Wal-Mart and Dell.

One of the advantage is cost leadership. Wal-Mart is the world's biggest discount department store. You can find almost anything you need in Wal-Mart. It's slogan is "Save Money, Live Better." The items selling in Wal-Mart might not be the best quality item, but it usually is one of the lowest priced compared to the market. Most items selling in Wal-Mart are like me "Made in China" or like my friend Abdul "Made in India". The labor cost in those developing countries are extremely low. Thus the cost of good sold is going to be low as well. Wal-Mart shows economy of scale to its best definition. Since they are such a big company, their average variable cost per unit is going to be lower than those of small companies.

Dell is the first mover in the computer industry to have customers customized their computer their way. One of the reason behind their success is their idea of letting customer choose how their computer are built. The first three computer I bought was a Sony and two unknown brand. They were all built when I bought it. Their idea of customization let the customers choose/create thousands of models. Dell was once the largest seller of personal computers. But the competitors quickly adapt the same idea and right now Dell is the third biggest computer company in term of sales. However, Dell's first move of customization has made Dell one of the most successful company in the world.