Organisational Strategy Case Study Example | Topics and Well Written Essays - 2500 words

Organisational Strategy - Case Study ExamplePorter (1980) explained the importance of counselling on cost leadership and product differentiation to gain competitive advantage - producing an excellent product which is a complete solution to a perceive need. It will then use system lock-in to sustain its competitive edge - locking in complementary products, maintaining a proprietary standard whilst locking let out potential competitors.Between 1996 and 2006 the PC industry underwent two major revolutions. Firstly the way in which PCs were ordered changed with the commencement of e-commerce and secondly the methodology for manufacturing PCs altered radically with the introduction of lean manufacturing and supply chain management.1996 dingle began selling on-line in 1996 recognizing the importance of having an encompassing e-commerce strategy. By 2000 its on-line sales were $50m/day. Dell became the largest manufacturer of personal computers in the world in 2001.Many have argued tha t the Internet renders strategy obsolete. In reality the opposite is trueit is more(prenominal) important than ever for companies to call themselves through strategy. The winners will be those that view the internet as a complement to, not a cannibal of, traditional ways of competing.The great conundrum of the Internet is that its very benefits - making information widely available reducing the difficulty of purchasing, marketing, and distribution allowing buyers and sellers to find and transact business with one another more easily - also make it more difficult for companies to capture those benefits as profits. (Porter, 2001)Figure 3 The Five ForcesSource Porter(2001)Being online increases competition. However there atomic number 18 opportunities there - particularly the removal or reduction of barriers to entry, and potentially equal access to consumers. Dell has no research and design costs thus change magnitude its advantage. IBM had already shown that marketing and distri bution skills were more important than the latest technological innovation as the market for low cost PCs matured faster than anticipated. Dell simply adopted IBMs strategy Advanced design Open source software Multi-channel distribution Low-cost manufacturingAggressive pricing Supply Chain trouble StrategyTaylor