Resource Based and Market Based View of Strategy
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- Date Submitted: 07/27/2016 01:15 PM
- Pages: 11
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Resource based view (RBV) of strategy concentrates in recognising and utilising the organizations resources. It is an important, essential and an inside out management concept that is useful in developing a successful strategy. The company evaluates the environment on the basis of available resources at its expense.
Market based view (MBV) of strategy designs the company policies and strategy based on the trends and the nature of the industry's environment. It helps in selecting the market combination for the product, in which the company utilises its strategy. The strategy helps in designing the structure and strategy of the company based on the market analysis of the industry.
Dell's Strategy
Dell had moved on from its prior resource based view of strategy to market based view of strategy, due to the hurdles faced after recession and from its market competitors like HP. Dell started outsourcing for its product manufacturing like Taiwan's Foxconn Group and sales to stores like PC World, Wal-Mart and many more.
The company started to restructure its strategy just as it lost the position as the worldwide market share leader in computer industry to HP. According to research firm IDC, HP had a worldwide PC market share of 19.3% for the quarter ending June 30 compared to Dell's 16.1%. In 2005, Dell dominated the playing field with 18.2% market share compared to HP's 15.7%. (Can Dell's Turnaround Strategy Keep HP at Bay, 2007).
Dell's success had been its customer approach, "You tell us what you want and we will build it for you". That approach has worked well with corporate [information technology] people and professional users. But that is a cut-throat market since these people have a good knowledge of prices. Dell always had a hard time with the non-expert buyers. (Can Dell's Turnaround Strategy Keep HP at Bay, 2007).
Dell started to refashion the company's strategy to largely compete with its rival HP. With the change in the company's strategy challenges were...
Market based view (MBV) of strategy designs the company policies and strategy based on the trends and the nature of the industry's environment. It helps in selecting the market combination for the product, in which the company utilises its strategy. The strategy helps in designing the structure and strategy of the company based on the market analysis of the industry.
Dell's Strategy
Dell had moved on from its prior resource based view of strategy to market based view of strategy, due to the hurdles faced after recession and from its market competitors like HP. Dell started outsourcing for its product manufacturing like Taiwan's Foxconn Group and sales to stores like PC World, Wal-Mart and many more.
The company started to restructure its strategy just as it lost the position as the worldwide market share leader in computer industry to HP. According to research firm IDC, HP had a worldwide PC market share of 19.3% for the quarter ending June 30 compared to Dell's 16.1%. In 2005, Dell dominated the playing field with 18.2% market share compared to HP's 15.7%. (Can Dell's Turnaround Strategy Keep HP at Bay, 2007).
Dell's success had been its customer approach, "You tell us what you want and we will build it for you". That approach has worked well with corporate [information technology] people and professional users. But that is a cut-throat market since these people have a good knowledge of prices. Dell always had a hard time with the non-expert buyers. (Can Dell's Turnaround Strategy Keep HP at Bay, 2007).
Dell started to refashion the company's strategy to largely compete with its rival HP. With the change in the company's strategy challenges were...