OBJECTIVES
As a person with knowledge of advanced marketing strategy, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this topic and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it.
By delving into this project paper, the author intends to have better insights into how advanced marketing strategy is thought up, formulated and then imparted down into the subsidiaries of the company or organization. The author hopes to have an in-depth understanding as to how the advanced marketing strategy enables companies and organizations to compete effectively and profitably in this era of internationalization where competition is extremely intense.
In order to reinforce the learning objectives, two key focal issues were focused upon, i.e. innovation and diversity. Innovation was discussed with regard to advanced marketing strategy where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.
EXECUTIVE BRIEF
This essay utilized Palm, Inc. as the model organization to review its present advanced marketing strategy and how they dealt with critical situations. From the analysis, key trends in the advanced marketing strategy were then identified, how it worked and its effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess these advanced marketing strategies with regard to their suitability to critical situations, during which the internal capabilities of these advanced marketing strategies in relation to the strategy being followed by Palm, Inc. was determined also. An overall analysis of the performance and effectiveness of the advanced marketing strategy of Palm, Inc. was also conducted to assess and compare the capabilities of these advanced marketing strategies with those of others. Gaps in the advanced marketing strategy capabilities and environment were then identified.
Finally, several choices of strategies to improve the advanced marketing strategy of Palm, Inc. as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.
OVERVIEW OF PALM, INC.
Palm, Inc. aims for sustainable growth as a broad market leader in mobile computing as well as for segment leadership. In both cases, the Palm, Inc. brands will play a crucial part. Palm, Inc. is able to establish its broad leadership usually by acquiring other strong mobile computing companies and their products, which are then combined into a new, larger company. Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various Palm products. This practically results in economies of scale that is able to create a distribution network for both the local and international Palm products. If a market is already in the control of other mobile computing companies, Palm, Inc. devotes its attention towards the development of a premium segment with its various Palm products.
The mission of Palm, Inc. is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements:
A) How successful do you think this organization is in terms of ensuring that factors in its external (macro) environment and the various market actors with which it relates are accommodated within its marketing strategies?
The marketing strategies of Palm, Inc. are geared towards making sure that the following macro-environment factors are taken into consideration:
A. Product-Service Market
Palm products include smart-phones and handheld computers. These are equipped with a Personal Information Management (PIM) software and other note-taking applications (2001). A range of additional features including high resolution coloured screens and wireless capabilities ensure that there's a Palm product designed to meet the needs of clients anywhere in the world.
B. Design Philosophy
Hand-held computers are different from a laptop. Palm products focus more on the management and access of information rather the creation and editing of documents. For this reason, Palm, Inc. has developed a unique set of guiding principles - simplicity, wearability and mobility. Total commitment to these principles makes Palm products very user-friendly to its customers (1995).
C. Customers
A majority of Palm customers are professionals who rely on mobile gadgets and expect seamless handoffs every time they make calls. For instance, a customer phones in a service request from the New York airport while boarding a plane bound to Paris the same day. The technical people of Palm, Inc. in New York will immediately work on the service ticket of the client. And when that client arrives in Paris, he / she would be able to call the New York service center and pick up exactly where he / she left off ( 1999).
D. Competitors
Palm, Inc. is the world's leading producer of hand-held computers. Interestingly enough, Palm, Inc. has an even larger share in the market for hand-held computer operating systems. Around eighty (80) percent of hand-held computers in the United States operate on a Palm operating system. Microsoft is the only major competitor with a share of sixteen (16) percent. The hardware market gives Palm, Inc. a market share of sixty (60) % (2002). Of the major competitors, Sony Corporation and Handspring are both using Palm's operating system, and hold about 7% and 14% market shares respectively. Other competitors, such as Compaq and H-P, use Microsoft's operating system, but both companies have below 10% market share. Palm, Inc. has had so much success in the consumer market, but the future goals include selling more products to corporations (2002).
E. Internationalization Issues
It is a common knowledge that the mobile devices industry is still a relatively new industry and is still in its early stages of development. However, it has shown signs of rapid growth and it is being estimated that there will be more than a million mobile devices that will be shipped within the year. And it is further being expected that within the next years the tremendous growth and technological advancements will continue in the mobile world. Mobile commerce and multimedia terminals are just some of the technological advancements already being expected. Therefore, the continued growth and development will also make it imperative for localization to occur in the mobile industry in the years to come (1993).
The software development for mobile devices of Palm, Inc. certainly will become the target for localization because of its dynamism. There are still plenty of operating systems for mobile devices that software developers can use. But since development cycles are much shorter than computer software development cycles, Palm, Inc. may need to rush the release of its localized versions of softwares. By doing this measure, they will be the first to launch softwares in various markets, thus putting more pressure on the localization process. Also, the redesigning and streamlining of both software development and the localization process will become imperative if this scenario happens (1997).
A majority of the localization projects of Palm, Inc. for mobile devices are part of OEM deals. Palm, Inc. often partners with smaller companies to ship products with devices. Hence the huge customer influence on localization projects and product design is undeniable. Changes are also frequently made to the documentations and the overall look of the applications. Therefore, this will require the localization process to be a lot more flexible than in other situations localizers are used to dealing with (2001).
There is also an issue of the lack of experience in dealing with mobile devices in both the software and localization industries. Thus, there is still no knowledge base from where to get the troubleshooting tips. Since most projects require both the software and localization industries to sign non- disclosure agreements, software developers who are working on a project and encounter problems won’t be able to go outside their organization to ask for assistance. Thus, they would have to find answers and solutions to their problems by themselves. Their solutions also may never be shared with others. Clearly, there is an immediate need for a knowledge base that will guide all those in this field ( 2001).
The points discussed so far bring out the necessity of having cooperation between Palm, Inc. and localization vendors. Both should strive hard in order to establish streamlined processes for localization. Close collaboration will help guarantee successful localization for mobile devices.
B) How successful does the organization seem to be in ensuring cross-functional responsibility for marketing operations within / across its own sub-units or departments?
Palm, Inc. has been able to maintain its reputation as one of the world's leading mobile computing companies for more than 130 years now. It is able to face the challenges in many of its markets directly. This is made possible by the effective promotional and positional strategies aimed to deliver not only profit growth, but also on building down the foundation of its brands and business.
The promotional campaigns and strategies of Palm, Inc. are focused mainly on driving the growth of its brands and improving the company’s financial performance. These campaigns have also helped secure significant acquisitions and partnerships. And more importantly, these campaigns have led to the release of the potentials of the company’s employees, thus building a quality performance- based culture.
The promotional strategies of Palm, Inc.’s local products are practically reinforced by the local employees themselves. These moves certainly allow the company to improve even more without the costs of introducing new technologies. These efforts have resulted in increased financial gains for the company and have allowed the establishment of distribution networks for both the local and international Palm products.
C) What future market-driven strategies would you recommend to the management team of your chosen organization?
Deriving from the analysis between the environment, strategy and capabilities of Palm Inc., many strategic options would become imperative. It is therefore essential to evaluate these strategic options as to whether they are appropriate to the issues addressed, whether they are feasible enough to be implemented and their acceptability to key stakeholders.
A. Business Level StrategyThere is definitely a need to reconcile both the inside-out and outside-in capabilities. While Palm, Inc.’s business strategy involves focusing on its core competencies with market position following its resource base, the company will be put into a disadvantageous position should it choose to neglect both the macro as well as industry environment. Therefore, Palm, Inc. has to be aware of the latest technological changes, as well as changes in political, economic, legal and even demographic trends in order to develop the outside-in capabilities, such as market sensing, customer linking, channel bonding and technology monitoring (2000).
The advantages enjoyed by the company may come in the form of increased revenues. Knowing what the market demands and the latest trends could help Palm, Inc. fully exploit its research and development capabilities to come out with product designs which are cost-effective but high in quality and performance. The strategic option can even be used as marketing tool where the focus is on staying close to your customers and listening to their feedbacks. On the flip side of the coin, there will be huge mobilization of resources involved, and the associated risks bestowed on the company.
Nevertheless, the mentioned strategic option seems the most practical in the wake of globalization, since there is a sudden shift towards a more integrated and independent world economy. The key stakeholders too should not have any objections so long the company’s core business is not threatened. By virtue of Palm, Inc.’s centralized control of its subsidiaries, it is being expected that major barriers should not exist in carrying out such an option except additional time may be required given the scope and span of Palm, Inc.’s operations.
B. Corporate Level StrategyUnderstanding the strategic importance of its subsidiaries is something Palm, Inc. has to be familiar with. Palm, Inc. normally practices a centralized and globally scaled configuration of assets and capabilities among its subsidiaries. This allows information dissemination to be retained at the corporate headquarters of Palm, Inc.
C. Network Level Strategy
There are various strategic options available for Palm, Inc. These are enumerated as follows:
· Tie up with various local telecommunications company
· Collaborate with either Microsoft or Compaq
· Alliances with leading players in technology such as suppliers
A tie-up or merger with various local telecommunications company offers tremendous benefits in terms of access to the company’s subscribers, infrastructure and even its resources. However, Palm, Inc. must not lose sight of its core competencies while pursuing these tie-ups. Otherwise, the image of Palm, Inc. might be put in jeopardy.
Meanwhile, the collaboration of Palm, Inc. with its major competitors can be seen as a ridiculous move at first. However, upon close examination, this move could pave the way for Palm, Inc. to increase even more its market shares and revenues. The bottom line is both sides would be able significantly gain financially in such an alliance. Palm, Inc.’s strengths in product development combined with the financial capabilities of either Compaq or Microsoft can transform them suddenly into an unbeatable force to reckon with. One possible setback, however, is the differences in the cultures of the companies involved. Another possible setback could be whether any of Palm, Inc.’s competitors has the need to form alliances.
The third option also focuses on alliances, but this time with either one of the suppliers specializing in manufacturing of mobile products or the product’s operating system. The benefits of these alliances should outweigh the costs in the long run.
In terms of appropriateness, all three options are able to directly address the current issues mentioned. However, the question remains whether Palm, Inc. could be able to implement any of these options, and whether these options can be acceptable to the key stakeholders. Any merger or alliances may also involve the sharing of expertise. Palm, Inc. has traditionally relied on the inside-out approach. It is important to note that any merger transactions would have many implications on the company’s values and culture as well as the resources. The key stakeholders definitely would be concerned with such options and need to be convinced of the positive aspects. Somehow, Palm, Inc. will be able to overcome this barrier in managing strategic changes in the process of implementing any of the above mentioned strategic options.
CONCLUSION
Palm, Inc. has been able to remain one of the world's leading mobile computing companies for more than a century now primarily because of the execution of the company’s advanced marketing strategies to perfection. Add to the mix the company’s dedication to high quality of service and the formula for success is at hand.
Moreover, the utilization of the appropriate advanced marketing strategies is necessary for their products to reach out to people even in different cultures. In this case, it is being recommended that a combination of advertising, branding and personal selling be implemented by Palm, Inc. due to its high level of effectiveness.
However, certain points have to be taken into consideration by Palm, Inc. regarding advanced marketing strategies. Since their income is relatively higher than most mobile computing companies, the time for implementation of their chosen advanced marketing strategies would take longer than usual, aside from being expensive. But since the goal of Palm, Inc. is towards a long-term dominance and stability in the mobile computing industry, then the pursuit of these promotional campaigns will be beneficial for the company in the long run.
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