What Advantages Does Dell Derive from Virtual Integration? How Important Are These Advantages in the Auto Business?

1. What advantages does Dell derive from virtual integration? How important are these advantages in the auto business?

Production problems can be resolved through the virtual integration of vertical integration as it duplicates the advantages and deciphers the issues with communications, control and coordination without really assimilating areas of the business. By not vertically integrating, it will inevitably inflate overheads that the company would normally not require in this day and age. Virtual integration would support the decrease of a financial lumber that would otherwise be associated with Vertical integration, yet still reap the benefits without a cost. Organizations can assimilate and expedite their frontline and customer needs more efficiently as it nearly eliminates the confines and responsibilities normally associated and affiliated to the value chain process. Value chains enable the quick adaptation set out by market demands, and virtual integration allows for the timely response to any anomaly or change without forsaking efficiency. Virtual integration is a win-win for companies and their partners as it equally allows for the real-time exchange and involvement from both, giving them - all associated to the process - virtual incorporation they need to keep abreast of their business, and have it run smoothly.

Sharing information in the automotive industry, specifically between the Ford and its suppliers, minimizes any costs associated to resolving issues. The constant sharing of information mitigates any predictable inventory differences as it maintains the accuracy of the supply and demand in real-time of any inventory given the arise of an issue; thus, working seamlessly throughout all portions of the supply chain ensures fewer concerns for the automotive business. Information sharing like this enables improved efficiency and has the entire organization running at full tilt all the time.

2. What challenges does Ford face that are not also faced by Dell? How should Ford deal with these challenges?

Given that the Ford and Dell are in entirely different industries, there are layered challenges that Ford has faced that aren't remotely probable with Dell. Off the cuff, Ford has been around much longer then Dell and is riddled with Legacy Machinery that it has encorporated over the years thus, technological