Palm's Strategy Essay Example | Topics and Well Written Essays - 1000 words

Palm's Strategy - Essay Example Having clarity regarding the level of performance and the factors affecting the performance helps the organization to comprehend the bottlenecks that exists in the organization. The organization than can utilize the resources in a more effective way. Nadler and Tushman’s Congruence Model: David Nadler and Michael Tushman at Columbia University formulated a simple yet effective approach to assess the organization dynamics based on the systems theory. The efforts taken by Nadler and Tushman to develop a theory to chalk out the flow of productive work in a company created the congruence model. The congruence model systematically breaks each step of the basic systems model to explain the systems model. The congruence model developed by Nadler and Tushman depicts the outcome of strategies applied on the inputs namely Environment, Resources and History. The outcomes are assessed in the level of organizational performance, Group /unit performance and individual performance (Nadler, T ushman&Hatvany, 2007) The entire model aims at assessing the application and strategy applied by the company on their key resources like Human resource, the background or the history they have and the environmental resource available to the company. ... Palm has been able to apply the strategy of generic competitiveness on the inputs to achieve the outcomes that it enjoys. Fig: Nadler and Tushman’s Congruence Model, Source: Cameron and Green (2009) Porter’s Generic Competitive Strategies Applied By Palm: A number of theories have been developed in the area of strategic management. Porter’s Generic competitive strategies define the three standards on which an organization can base their growth strategies. Cost Leadership, Differentiation and Focus. The cost leadership is the strategy applied by the company to be different from their competitors in pricing. Offering products at a lower price than their competitors without compromising with the quality of the product. Differentiation strategy implies strategies applied by organization to differentiate their products in such a way that they stand out in comparison to their competitor’s product. Focus is the area on which the company decides to place more stre ss on to achieve either cost leadership or product differentiation. Cost Leadership: When a company aims at cost leadership, cost reduction becomes a major goal for the company. A low cost strategy applied by Palm Inc. is increasing the scale of production. The company makes provision to cut costs that occurs due to unplanned reasons. One of Palm’s main business strength is the ability of Palm to produce cost effective products. Cost effectiveness allows Palm to generate better revenue. In a competitive market having a technologically sound product does not always guarantee better market share. Even the most high end customers look for cost effective bargain and Palm has been able to recognize this factor. The software technology developed by Palm is produced in such a way that they appeal to