Harvard Business Review was the first publisher in 1957 for Ansoff Product/ Matrix Grid, which is very well know tool for marketing growth tool. This article name was Strategic for Diversification whereby it was publicized. The tool shows that new product in old market or old product in new market is the strategy where in fact the growth technique for any business will depend.
The Ansoff Matrix tools suggested that the main strategy is the marketplace penetration strategy where need to improve the market show by protecting dominance in growth market. Secondly, strategy is product development into new and old market. Finally, market development is company aims to sell existing products in existing market. Finally, Diversification is the strategy where corporation wants sell new products in the new market.
In order to adopt these strategies Google and Dell must look at market penetration, Market development, diversification and product development, as a results Yahoo and Dell has to look after different methods such as proper allicances and collaboration, etc. The methods are mentioned below:
A tactical Alliances can be described the tow or more companies talk about their activities and talk about resources to practise strategy (Johnson et al. , 2007). SA can be called also partnerships, that happen to be combo of resources such as managerial, financial and technical and also competitive advantages. Moreover, Strategic Alliances tend to be called cooperative strategies, these cooperative strategies towards cooperation between two firms for writing of marketing and creation facilities of each other. Furthermore, the tactical alliances and Joint endeavors are participating in critical role to increase and diversifying the merchandise of the business. When strong competition is in the market the Yahoo and Dell have decided to expand the business enterprise to create suffered channel in the business. Both the companies possessed made amount of Joint Ventures and Strategic Alliances that happen to be as follows:
The following is the set of main Joint Ventures and Strategic Alliances for Google:
Google has partnered with NASA Ames Research Centre in 2005.
Partnership with Sun Microsystems in 2005 for posting technologies each other.
Strategic Alliances with AOL of Time Warner to enhance the video serach engine motor.
Mobi top-level area for device of mobile such as Nokia, Microsoft and Ericsson.
Google has joined partnership with News Corp for $900 million, this agreement provide to gain access to popular social networking site Myspace.
The pursuing is the list of main Joint Endeavors and Strategic Alliances for Dell:
The one of significant partnership happened for the Dell with EMC Firm. The main goal for this relationship was jointly design the products.
Dell made tactical Alliances with world best know technology brand and Indias leading software company Tally. This SA provides potential income benefits and Dell computer will powerd by Tally ERP9. these Vostro systems will bring new invention technology in Dells computer(http://www1. ap. dell. com/content/topics/topic. aspx/ap/corporate)
Develop the technology with the contribution of both companies can helped bring new technology beyond their functionality. For Example, Google and yahoo partnership brought visual and technical improvement to personalized queries.
Strategic Alliances provides both companys existing making facilities, whereby blended facilities can reducing manufacturing costs. For instance, Dells proper alliances with Indian software company Tally will reducing creation cost because Vostro systems will be making by Tally.
In order to enter into a new market, Strategic Alliances is the ultimate way to enter a fresh market. When any company very keen to enter a fresh market with their successful products, but insufficient marketing competence or lack of understanding local people want and needs could prevent those to entering market. Moreover, will not learn how to promote products and service or lack of knowledge of usage of the distribution stations or trying to founded research centre in the new market which frequently proven didn't provide positives results. However, all the problems can solve through proper alliance with another local company which includes same ambition and potential to create same marketing skills. Furthermore, these methods of development may helps to reduce culture variations that could develop during or after the agreement. For example, Google made proper alliance with AOL, Time Warner and Dell with Tally in India.
Strategic Alliances and Joint Ventures provide augmentation of supply chain management, this is another reason for SA and JV. FOR INSTANCE, Google has got into partnership with Information Corp for $900 million, this agreement provide to access popular public networking site Myspace.
The joint ventures and Proper alliances can affect for the organizations in best possible positive way but these are not as beneficial as once thought. But nonetheless you can find and potential benefits for both companies can get if it is proper research and examine before made these procedures. According to Arnold, (2005) even there exists quantity of negative pitfall, still Joint Ventures and Strategic Alliances creates good relationship between your two firm, consequently by these methods can achieve competitive advantages, diversify the merchandise portfolio.
When any firm is going for Joint Ventures and Strategic Alliances, they must have properly evaluation of selecting spouse. It has been established that without the proper partner, a company never be successes through these approach to developments. Thus, both companies should have brought their strength close to each other, whereby it can accessible to any partner. Moreover, both the firms should contribute evenly in their contribution, win-to-win situation for both. Furthermore, they should have trust the other person and
The company must deal with additional obstacles such as countrywide culture, language, rules and regulations, foreign exchange considerations and not usage of foreign products by the local community when the company penetrates into new market. So therefore, it could be suggested that incrassating the show for the number firm and try to encourage motivation to be able to keep in higher level relationship with local government and local community. For Example, Google could take more cautious initiatives to prevent such incident took place in China.
Continuous of Merges, acquisitions, Strategic Alliances and Joint Endeavors are very difficult process if there is no trust on their tactical decision making. Each company has their own plan and goals to attain but almost all of the time management processes are creating further issues such as corporate culture of both firms. Then, it can suggest that both Yahoo and Dell need adhere to key key points:
Strategy and responsibilities have to be clearly identified.
Take imitative for overcome with culture barriers.
Building the trust each other within the management procedures.