An Exploratory Analysis of Competing Supply Chains in the Personal Computer Industry

Major business trends in supply chain innovations are reviewed. Effects of acceleration principle (also called bullwhip effect) in a manufacturing business environment are explored. The success of three supply chain examples from the personal computer industry are examined with an objective to learn how well they have adapted innovative approaches and mitigated the effects of acceleration principle. The main focus is on Dell Computer, since by the year 2002, its direct-to-customer, build-to-order model had taken the lead in the industry, and was beginning to dominate the market. The analysis provides a brief history of the personal computer industry, and a definition of the narrow focus being examined in this work. The study also explores operations at Dell - its beginnings and a description of its current supply chain model - and then Gateway and the new Hewlett-Packard (HP) shown in comparison and contrast to Dell. A number of research questions arising from the study of three supply chains are addressed. Predictions are made for the future direction of each company (Gateway and HP) versus Dell in market.

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