Dell's fall in market share due to rivals copying its value chain is cited as a precedent for Zara. However, which of the following factors suggests that Zara's value chain might be more difficult to copy? Zara is backward vertically integrated while Dell has tended to be more forward vertically integrated. Zara's scale advantage ensures its market share is more than that of all its rivals' put together.

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Zara's costs are pegged to the stronger euro as compared to Dell, which was dollar-based. Clothing is more complex than computing, in terms of number of new models offered. The computer industry, unlike clothing, is influenced by several extrinsic factors, such as economic recession. Many telecom firms began digging up the ground and laying webs of fiberglass to meet the growing demand for Internet connectivity. However, rivals and startups began to imitate these firms and soon these new assets were not so rare and each day they seemed to be less valuable. It can be inferred from this example that: a.

The telecommunications market is only big enough to support one or two major players. Resource-based thinking can help avoid the trap of carelessly entering markets simply because growth is spotted.

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Technology assets that require high investment and maintenance are liable to becoming obsolete much quicker than others. The immense scale advantages enjoyed by major firms can help them fight off competition from newer entrants. The scale of technology investment required to run a business is not a huge enough factor to act as a barrier to entry for new, smaller competitors. Vm ware workstation for mac. Dell, previously the world's number one PC manufacturer, has seen its market share shrink because of rivals copying its value chain and reducing the price advantage it enjoyed over rivals. Dell's present struggles: a. What program to use for graphic design on mac. Highlight the fact that scale advantages of an established firm are a huge factor in discouraging newer entrants to a market. Underscore the importance of continually assessing a firm's strategic position among changing market conditions.