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Strengths and Limitations of Innovative Strategy of Dell Essay Example

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Strengths and Limitations of Innovative Strategy of Dell

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Strengths and Limitations of Innovative Strategy of Dell. Such expansion however, was done with very less known players in the market thus restricting the ability of Dell to actually exploit its core competencies. Dell has probably failed to fully exploit its core competencies by achieving the synergy between itself and its core partners in the different lines of business. This has therefore restricted Dell from achieving the same level of market recognition in other segments of the business.Apart from this, Dell has also rejected some proposed expansions on the grounds that the market may not be ready for such products at that time. This line of thinking however may have proved wrong because the market for smart phones and mobile phones is booming and with the introduction of products like Apple Iphone and Apple IPAD, the overall competitive landscape has changed.

Intense focus on the personal computer segment of the business coupled with reluctance to expand into unknown and riskier markets therefore has restricted the ability of Dell to expand into other markets.Dell’s expansion strategy is based upon forming strategic alliances with firms like Lexmark International and EMC to expand into other segments of the business. Some of the key issues which can be evaluated by Dell in its co-branding efforts with the above companies should include an assessment of whether Dell would be able to generate the kind of synergy it requires to blend its core strengths with the core competencies of its partners. A logical and rational assessment of how the synergy will be achieved therefore should serve as one of the key strategic issues to be dealt with before engaging into any kind of co-branding activity.The merging of culture is also another important issue which Dell has to consider because companies often fail to take advantage of each other’s strengths due to inherent differences between the cultures of both the companies. If there are strong cultural differences between what is practiced at Dell and what is practiced at other firms therefore could result into serious impediments for Dell and its partners to reconcile such differences in order to take advantage of the available market opportunities.Finally, Dell must have to evaluate whether it will be successful in this segment of the business or not. Its traditional focus has always remained on the personal computer business. Thus considering its core competencies, Dell should evaluate as to whether it can utilize its. Strengths and Limitations of Innovative Strategy of Dell.

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Bibliography

Burrows, P. (2010, January 14). Apple vs. Google. Retrieved March 21, 2011, from Business Week: http://www.businessweek.com/magazine/content/10_04/b4164028483414.htm

Dell, M. (1994). Making the Right Choices for the New Consumer. Managing Service Quality , 4 (2), 21-24.

Lee, L. (2008, Feb 13). Innovation at Risk. Retrieved March 21, 2011, from Bloomberg Business Week: http://www.businessweek.com/innovate/content/feb2008/id20080213_687864.htm

Pettinger, R. (2004). Contemporary Strategic Management. New York: Palgrave Macmillan.

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