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They are simply being outcompeted by other individuals in other organizations.
The Nadler-Tushman Congruence Model implies that when there is a high level of congruence between the activities at the individual, group and organizational levels, the company should succeed. Palm is an interesting case study because it counters the Nadler-Tushman model somewhat. The members of the firm are working with a high level of congruence, but they are simply not successful in their endeavors. Consider the distribution question. If the company wants to dominate the industry, it should have a national carrier. It does. But the choice of national carrier was suspect, and the types of distribution deals with Verizon and at&T left something to be desired. Likewise, Palm advertising connotes a high quality product. They are sending the right message to the market, but they are not doing it in a way that resonates with the market.
There is an element of execution that is failing at Palm, rather than a lack of congruence, but all told the result is that Palm has not been successful. Nadler-Tushman explains this more in terms of congruence between the inputs, outputs and the external environment than between...
Thus, the output level is insufficient to explain the failure of Palm; the full Nadler-Tushman model however does explain why what Palm is doing simply is not working for the company. It also may shed light on what HP needs to do in order to turn Palm around, should it want to.
Works Cited:
Gonsalves, a. (2010). Palm sales lower than expected. Information Week. Retrieved March 1, 2011 from http://www.informationweek.com/news/hardware/handheld/showArticle.jhtml?articleID=223100743
Hewlett-Packard 2010 Annual Report. Retrieved March 1, 2011 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NzkyMjF8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
MindTools. (2011). Congruence model. MindTools.org. Retrieved March 1, 2011 from http://www.mindtools.com/pages/article/newSTR_95.htm
Palm 2009 Form 10-K. Retrieved March 1, 2011 from http://apps.shareholder.com/sec/viewerContent.aspx?companyid=PALM&docid=6710915
Virzi, a. (2011). Smartphone market share: Android bypasses Apple. ClickZ. Retrieved March 1, 2011 from http://www.clickz.com/clickz/stats/1935425/smartphone-market-share-android-bypasses-apple
Works Cited:
Gonsalves, a. (2010). Palm sales lower than expected. Information Week. Retrieved March 1, 2011 from http://www.informationweek.com/news/hardware/handheld/showArticle.jhtml?articleID=223100743
Hewlett-Packard 2010 Annual Report. Retrieved March 1, 2011 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NzkyMjF8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
MindTools. (2011). Congruence model. MindTools.org. Retrieved March 1, 2011 from http://www.mindtools.com/pages/article/newSTR_95.htm
Palm 2009 Form 10-K. Retrieved March 1, 2011 from http://apps.shareholder.com/sec/viewerContent.aspx?companyid=PALM&docid=6710915
Virzi, a. (2011). Smartphone market share: Android bypasses Apple. ClickZ. Retrieved March 1, 2011 from http://www.clickz.com/clickz/stats/1935425/smartphone-market-share-android-bypasses-apple
This benefits both the company and its customers. The sales and marketing department has a great responsibility in reaching the company's objectives. This department is in charge of establishing the pricing strategy that influences the company's general strategy. The department's employees must ensure that the price is sufficiently high in order to reach the financial targets of the company, but affordable for the company's customers. Also, the success of this
The third important environmental input that Palm will need to analyze and consider is the technological elements. Other than being a consumer-driven industry, this is also a technology-driven market and achieving the declared corporate strategy depends a significant deal on whether Palm can deliver new technological solutions for its users, solutions that will allow the clients to benefit more efficiently from the products that Palm offers. Other important environmental inputs that
HP Palm Generic Strategy Porter's generic strategy typology highlights that firms succeed either by being a cost leader, a differentiated producer or by being a niche player, again with either a cost or differentiated focus (QuickMBA, 2010). Palm's approach is mass market, and the company is essentially competing as a differentiated player. With its proprietary operating system and lack of ultra-low price points, Palm is clearly adopting the same differentiated strategy with
In the short run, the company has an uphill battle to establish itself in a tough market -- Palm's past successes in the industry are almost irrelevant at this point -- but in the long run the potential exists for HP/Palm to develop game-changing technology. The overall strategic fit therefore is only partially congruent. Internally, the three factors are congruent with each other. The resources, environments and histories of these