HP and Palm Competitive Strategies Using Porter's and Nadler Tushman Congruence
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Analysis of HP and Palm, Inc merger last year 2010 using the Nadler Tushman Congruence Model to analyze the overall congruence of the company. You first need to review the strategy and then classify it as one of Porter's competitive strategies. Then identify the Key Input factors in the first three categories. Explain why these are the critical input factors. Then determine how congruent the three input factors are with the strategy.
1. First discuss the organization's strategy and classify it according to Porter's three generic competitive strategies.
2. Then identify the most critical inputs in each of the first three categories and justify WHY they are critical. Also explain what effect the inputs from one category have on inputs from the other categories. How well does the strategy fit with the environmental, resource and historical inputs you identified?
3. Make a Case for your propostion as to how the Key Inputs support (are congruent with) the Strategy. Specifically make a claim: "The inputs at Palm, Inc., consisting of Organizational Environment factors, Internal Resource factors, and Historical Tradition factors are, [highly, partially, or minimally] congruent with the company's strategy."
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Solution Summary
The solution gives a 616-word discussion including an analysis of HP and Palm's strategies according to Porter's 3 generic competitive strategies, an identification of critical inputs and a how to support that claim that environmental factors, internal resources and historical tradition are highly congruent with company strategy.
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Question 1
Hp Company makes use of differentiation strategy to compete in the market place. This involves differentiating their products or services through the creation of a unique product in the industry such as the HP laser printer which is unique from the printers available in the market from the different competitors. Consumers consider the unique features desirable since they are not available in the competitors' products. Consumers should however be price- insensitive since availing a differentiated product in the market means higher distribution or production costs as this ensures that the distribution strategy succeeds. Differentiation does not allow HP Company to ignore costs since consumers will be willing to pay an extra cost for the unique product due to its desirable features.
In addition, differentiation results to reduced price elasticity as a result of customer brand loyalty therefore leading to higher profit margins and at the same time a reduction ...
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