Part I: Google’s Product Strategies
Google was started by two Stanford Graduates. At first the idea was conceived insane at the time they developed this search engine for the internet as a university project, but later on this became the success of the century and now the world can’t imagine using the internet without Google. The question of sustainability then comes, as argued consistently by management analysts as to how long can the existing chaos model being followed by Google survive coupled with its existing product strategies, despite of having soaring shares that are reaching heights (Burrows and MacMilan, 2011).
The greatest challenge that the technology industry faces comes in the form of the short life cycle of products and ideas that are replicated very quickly by competitors. Innovations introduced timely in the market are the only sources of survival in the market. Consumers seek the latest gadgets and software available in the market and it forces the IT brands to continually engage in bringing new innovations (Burrows and MacMilan, 2011).
Google’s competitors include Apple and HP that hold market leadership in the IT industry at present and are continuously engaged in the development of new software and applications for both, low-end and high-end customer markets (Burrows, 2010).
Two of Google’s product strategies that are highly crucial are mobile applications that are developed as a co-branding initiative with famous smart phone brands and social networking online website applications (Bloomberg Business Week, 2005).
- Google’s profitability is reaching soaring heights with a 26 per cent increase from last year alone.
- Google is proactive in its strategic orientation and approach.
- Google has been an innovative engine where its employees are extensively involved in researching and building on ideas relating to new applications, software and websites.
- Google’s fame is not only related to its search engine and advertising services, but also to how it treats its employees. The culture being followed in Google is highly innovation centered. Such high unrestricted level of innovation results in many of its employees leaving to start their own ventures, such as in the case of Twitter which was started by the company’s former employee (Burrows and MacMilan, 2011).
- Chaos management style is often criticized by analysts in terms of its sustainability for the organization in future.
- The premium pricing structure
- Entering into the smart phone market directly is an opportunity as the industry is currently growing.
- Google can also enter the online retail industry via setting up e-store websites (Burrows and MacMilan, 2011).
- Rapid pace of technological change
- The industry has become challenging owing to the rapid pace of technological change. Google is itself its biggest threat, whereby its business model faces the threat of obsolesce, based on its own standards of change and transformation to introduce latest and the newest product in the market before any rival even thinks of such idea (Burrows and MacMilan, 2011).
Google is an industry leader in terms of innovation. The Googley way of working has attracted in the past and still continues to attract almost every individual who is passionate about innovation and computer technology. The speed of innovation that Google expects from its organization to stay in shape and ahead in the game, challenges its capabilities to the fullest (Burrows and MacMilan, 2011). Using the existing product strategies, Google has expanded its opportunities for further expansion. These are viable considering the existing market conditions.
Part II: Dell’s Restructuring Strategy
Dell plans to bring a radical change in the organization through restructuring the organization based on customer focus. This has been the response of the falling market share and profitability over the years prior to 2007 (Edwards, 2009). Since 2007, Dell’s management is focused on the revival of the company. The structural changes brought into the company are discussed below.
Restructuring Based on Customers
The company has moved its organizational focus towards customers. This calls for a customer-centered management style and approach, as well as a customer based departmentalization system to organize resources, activities and people within the organization.
Newly Hired Executive Team
The newly hired executive team comprises of employees who hold previous experience in leading IT companies such as General Electric, Motorola and IBM. This will allow insights of these companies to flow into the organization, based on which effective marketing and management strategies can be developed to recapture the lost market share in the IT industry (Edwards, 2009).
New Strategies to Reach Consumers and Implications for Organisational Structure
Dell has changed its supply chain strategy, whereby its profound direct channel of distribution to the customers and direct marketing strategy has been altered to incorporate distribution via wholesale retailers such as Wal-Mart. This has been done to allow Dell to reach the end-consumers more effectively with product displays. Because of this shift, Dell has had to reshape its supply chain model and organizational structure. A more vertical value chain is created (Edwards, 2009).
Summary of Main Points
Google is an industry leader in terms of innovation. Using the existing product strategies, Google has expanded its opportunities for further expansion. These are viable considering the existing market conditions.
In the case of Dell, considering the attempts and the outcomes of the change strategy that are to be witnessed in the short run, Dell’s strategy raises questions of survival for the company rather than a strategic shift towards the global expansion and growth.