The industry I have chosen is Information Technology and the company is the Dell. Dell is the leading company in the computers software's, data storage devices along with network switches to the customers. They deal in everything related to the Information Technology and capture an enormous market share not only in United States, but all over the world. Dell is placed over 44th rank in Fortune 500 list. The general model of change of this market is that they provide customization, which no one else does. Dell uses to tailor the demands of the customer and assembled it on the site being efficient and perfect. The unparalleled customer desired product as soon as loaded with the specifications is delivered to the customer. Thus, the swiftness and the efficiency of the manufacturing process add the value in the Dell production system. This whole process added value to the Dell as the incorporation, making it one of the best investments (Holzner, 2005, Pp. 134-178).
Short Run and the Long Run Behavior
Market economy is a type of the economy in which the basis of decision is supply and demand. The decisions are such as the investment criteria, production and the distribution of the products. The short run behavior according to the market economy might be that, if some new product or software is launched, the demand of the existing product might get slow. However, another short term behavior is if some remarkable software is launched, then the demand of it will be higher, because of its popularity. The opposite will be seen in the long run behavior. If there is not a demand of the some software, then the technology and the software will remain in stock for long, and it will get out dated. The demand in this industry is however, intense volatile because of the changing nature and the regular technology updates in the IT industry by the competitors. In addition, the other long run behavior can be the high price and the premium payments of the technology. The updated, and the latest technology is never available in the low prices, and the values of these products always remain high.
Degree of Competition
The degree of competitiveness drives by many factors in the Dell. The Dell's business structure of implicit integration gives it an incredible competitive advantage over its competitors in the industry. The business model of the Dell gives it opportunity to maintain an edge over its competitors by not compromising in the quality and sought out every opportunity to be more productive and efficient. However, the efficiency in the production department makes them achieve economies of scale which in turn increase their margin of profits.
Price
According to the Porter's five forces of change, when the buyer has many options and the industry is highly competitive then the bargaining power of the buyer increases relatively at the intense pace. However, the Dell combats this price bargaining power of customers, by valuing customers and respecting their ...