Business strategy - Essay Example

Only on StudentShare

Extract of sample
Business strategy

It s using pricing as its strategy while it has failed to look at improve itself and its products. Price cannot be used as a competitive edge any longer as consumers are becoming less price sensitive and more product and feature-conscious. HP has been able to improve itself and is using its efficiency as its competitive edge.
The strategy of the firm to supply customized products to customers has worked in the US as it was a controllable area but as a global strategy this does not seem to be working as their revenue in the US is increasing at a decreasing rate in exhibit 8, where in 2004 it decreased by 2%, in 2005 it decreased by 2 % and in 2006 it decreased by 2% again. Revenues in the Asian market remained the same in 2003 and 2004; in 2005 it increased by 1% and in 2006 it increased by 1% showing that the market has more growth potential than the US. Dell customizes the products and handles mass customization. This puts a strain on the supply chain as the specific demands have to be met and quality has to be maintained along with timeliness. This is easier on a small scale but on a larger scale maintaining the same quality and precision becomes difficult and demanding.
The strategy of Dell to play safe and not concentrate on R&D of products is making them loose out. Dell spent 0.8% of its revenue on R&D in 2006 which is 3.1% lower than HP and 2.9% lower than Apple. Innovation is essential for a technological based industry as products are replaced by better technology and Dell would eventually lag behind if it does not keep pace with the changing needs of the consumers. Dell should change its strategy from attacking the product giving the highest profit to inventing a product that will give them highest profit. Then they could have a better market share for longer and retain a competitive edge.
Dell has applied the same strategy in all the countries and has not tried to understand the market in some cases. For instance, Dell sells ...Show more


a) I agree with the statement that something is wrong with the company strategies as the revenues have been increasing at a decreasing rate as shown in exhibit 8. If we see the revenue growth, we see that in the early 90’s the revenue increasing at higher rate than in the…
Author : vspencer
Business strategy essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Business strategy"
with a personal 20% discount.
Grab the best paper

Related Essays

Business Strategy
It therefore represents the best attempt that the management can make at de?ning and securing the future of that business” (Oxford University Press, n.d., p.1). Each of the businesses should have their own business strategies to survive the competition and compete over its competitors.
12 pages (3000 words) Essay
Business Strategy
For example, globalization has produced revolutionary changes in the domestic and cross border business activities. The importance of business processing and customer processing has been understood by the organizations more than ever under the current globalized business environment.
8 pages (2000 words) Essay
Business Strategy
A well thought about and precisely considered business strategy gives guidance to a firm’s commercial success, but on the other hand, one that has not be fully understood and weak strategy is likely to result into a company’s demise or fall. (Kourdi, 2009 p3) A business should always have the right resources and the capability to be in the best position to exploit opportunities and to respond to the threats in a business environment.
7 pages (1750 words) Essay
Business Strategy
It is the second largest public university with a dynamic academic community consisting of more than 8000 staffs, 30000 students and more than 300, 000 lakh graduates (“About”). The university has been one of the major players in providing qualitative education in United Kingdom.
14 pages (3500 words) Essay
The internal and external, the micro and macro-environment of a firm need to be assessed. It is like a SWOT analysis of the environment.
4 pages (1000 words) Essay
Business strategy
Founded in 1996, Entropy International was a pioneer in the field of Environmental and information management. It was the first company to provide a web-based portal for compliance, performance, information and risk management. Its seamless integration
10 pages (2500 words) Essay
Business Strategy
Keeping our business rival close is the strategy that Sharpe considers in doing so we ensure communication with the barley and be sure not to leak our business secrets to our competitors. When communicating with the
2 pages (500 words) Essay
Business Strategy
The strength of the value chain supports the strategy of the company. For example, the market ratio of the company is considerable stronger than the competitors. Examining the total
1 pages (250 words) Essay
Business strategy
In July 2014, Anglo American consented to offer its stake to Lafarge, to help Lafarge in its merger with Holcim and alleviate rivalry concerns. Lafarge declared in February 2015 that the business would be sold out to CRH plc, once Anglo American had sold its
6 pages (1500 words) Essay
Business strategy
The study says that Mulberry aims to operate in two sectors the design business and the retail business (Robinson, Sherwood and DePaolo, 2010). The retail business deals with the sale of
16 pages (4000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email