Business strategy Essay Example | Topics and Well Written Essays - 3500 words

Business strategy - Essay Example 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

EGT Essay Example | Topics and Well Written Essays - 750 words

EGT - Essay Example Admittedly, the very first thing that is noticed about Chinese culture is the importance they give to relationships and connections. In other words, there is a term ‘Guanxi’ in Chinese that means ‘relationship’. Evidently, the Chinese give too much stress on having relationships based on trust and cooperation. In other words, for them, business promotion will not merely run on publicity but it will depend on developing trust and cooperation in China. Another sensitive area in business marketing in China is the personal pride. In this nation, humiliation; either private or public, has a seriously negative impact. However, in this nation, praising can do wonders even if done in moderation. It brings respect, loyalty and negotiations. Another important point is the use of ‘Keqi’, which means ‘courteous and refined behavior’. Generally, in China, exaggerated claims are often viewed with suspicion and disdain. On the other hand, modesty and humility always manage to win hearts easily, as they are recognized as the indications of truthfulness. One important point where contradiction can arise is the speed of negotiations. As Zhao (1991) points out, while Americans are known for their fast pace and the eagerness to get immediate result, Chinese believe in long term relationships and they generally dislike hurried transactions. Evidently, the American marketing strategy should aim first at developing trust and then at praising the Chinese culture in a way that does not arouse suspicion. Efforts to exaggerate the company’s credentials in the very beginning may not get the kind of response it can reasonably expect in the West. The second point of consideration is that the marketing and business negotiations should aim at the right person. Often, US marketing people engage in negotiations with people and finally realize that they were