Strategic Marketing Management - Case Study Example

However, road to foray into such diversified markets was not that easy and needed an innovation from Dell’s management and policy makers. This innovation was not restricted only to new strategies or tactics, but to a complete revamping of its culture and the way employer-employee relationship exists. Question 1 Dell had been operating as the Numero Uno player in the computer industry, leaving behind IBM and Compaq. All credit to its innovative direct-to-sell model. However, Michael Dell (CEO and Founder of Dell Corporation) felt the need to innovate further and extend the targets because according to him, golden sales figures are not always real and most of the times, they carry hidden threats.

Even though Dell had been posting mammoth profits in its computer sales, yet innovation was required because of spreading discontent among Dell employees and diminishing influence of leaders. The innovation at Dell was the precursor to its expansion and diversification spree and as such, required a total revamping of the prevailing culture and norms. Every strategy comes attached with strengths and also some defects. Innovation strategy at Dell was strong in its inception and planning aspects because the leaders had smelled the nuances of employee detachments with the Corporation.

As such, the innovation strategy was marked by a transformation in the personality and attitude of the leaders itself- Michael Dell and Kevin Rollins. This sparked new zeal, influence and respect amongst the employees that even the senior managers and company owners are so committed to innovate the company that they are ready to change the way they behave. Infusing cultural compatibility was the stepping stone and indeed one of the strengths of the innovation strategy pursued at Dell (Interaction Associates n.d). Two-in-a-box approach was another inspiring and influencing feature as well as strength of the innovation strategy (Park 2003).

It fostered team spirit, shared working and synergistic attainment of goals when two managers or employees worked in tandem. Another strong feature of Dell’s innovation strategy was judiciously planned and analyzed options. The motto behind innovation strategy was ‘efficient and not profitable operations’. This is why Dell even let go of many of new ventures and entry options which seemed lucrative but did not hold much scope of future promise. Innovation should not be at the cost of current positioning and secured market standing.

Dell could have proceeded with the options, but what matters is the value which should be delivered to the customers in terms of efficiency, reliability and value (Dell 2002). This is what the biggest strength of innovation strategy was. However, being too rigid on pursuing strategic options and not developing the research and development abilities of the company counts as one of the weaknesses of its innovation strategy. Dell embarked upon many ventures but discontinued them in midway because of cost or feasibility options.

This is something which is not expected out of an experienced and leadership position holding giant. Innovation is a risk-return tradeoff which was not understood and recognized by Dell. Some sort of employee induction problem is also apparent from the case which unveils concerns like absence of bottom-up management approach, lack of empowerment and creativity in employees and decisions flowing in from the top management cadre of the company. Question 2 Whatever market Dell enters or