Final answer:
Dell Computer's use of information systems for efficiency and mass customization aligns with a cost leadership strategy, focusing on delivering products at lower costs than competitors. Cost leadership is distinguished from product differentiation, which aims to make products seem unique. Dell's methodology resembles Amazon's approach to maintaining competitive pricing.
Step-by-step explanation:
Dell Computer's strategy of using information systems to improve efficiency and implement mass customization techniques to maintain consistent profitability and an industry lead is a classic example of cost leadership. This business objective focuses on producing goods or services at a lower cost than competitors, often by achieving economies of scale or through technological advantages. Dell's approach allows them to offer products at competitive prices while still maintaining a solid profit margin, which is fundamental to their industry position. Notably, firms like Amazon have also successfully pursued cost leadership by optimizing their production model and cost structure, enabling them to offer lower prices even when including additional factors like shipping costs.
In contrast to strategies such as product differentiation, which rely on making a product appear distinct from those of competitors, cost leadership emphasizes reducing production and operational costs to offer goods or services at the most competitive prices. An effective cost leadership strategy can deter new entrants into the market that may be unable to compete on price, thereby protecting the company's market share and contributing to its long-term surviva