An organization’s suppliers can have an important impact on the success of the
organization. Discuss the various types of suppliers for Dell Computers and explain why
these suppliers are important to success.
Dell’s suppliers include microprocessors (Intel, AMD), disk drives (Quantum, Seagate
Technologies), preinstalled software (Microsoft and Google), capital (banks and financial
institutions), and labor (educational institutions, trade unions).
Changes in the nature, number, or type of suppliers result in forces that produce
opportunities and threats to which managers must respond if their organizations are to
prosper. A supplier’s bargaining position is especially strong when (1) the supplier is the
sole source of an input and (2) the input is vital to the organization.
In contrast, when an organization has many suppliers for a particular input, it is in a
relatively strong bargaining position with those suppliers and can demand low–cost, high-
quality inputs from them.
AACSB: Reflective Thinking
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 04-03 Identify the main forces in the global task and general environments, and describe the
challenges that each force presents to managers.
Topic: Competitive Environment