Michael Dell and Andy Grove: A Comparison

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Table of Contents

Introduction
Michael Dell and His Contribution in the Field
The resistance that Dell Faced
Andy Grove and His Contribution in the Field
The resistance that Grove Faced
Similarities and Differences
Factors that Influenced their Success
Reference List

Introduction

Krames’ book What the Best CEOs Know: 7 Exceptional Leaders and Their Lessons for Transforming Any Business gives some of the most successful individuals who incorporate organizations (2003). This essay focuses on some of these individuals in chapters 2 and 5 of the book. It compares and contrasts the experience of Michael Dell who is the founder of Dell computers with those of Andy Grove who represents Intel Inc.

Michael Dell and His Contribution in the Field

The professional under discussion in chapter 2 is Michael Dell who the former CEO who saw the organization become a multibillion firm. His contribution was in the field of domestic consumer products. Some of the initial products produced were air purifiers that are used in homes and offices. His strategy involved direct interaction with consumers at a time that he was involved in the sale of personal computers in college (Dell & Fredman, 1999). His strategy also involved making consumers the center of his business. With this policy, he ensured that product development, design, and the final production processes were informed by customers’ requirements.

The supply chain that he created in the company was also dependent on the customer. The chain continued to be the main strategy for the company. The company adopted the bottom-up approach in the production process. This option was informed by the mass customization that the company had adopted (Dell & Fredman, 1999). As Krames states, “Dell’s direct model of mass customization was not born of any desire to revolutionize an industry. Instead, it was founded on a “bottom-up” strategy based on customers’ needs and preferences” (2003, p.59). Most companies at the time would guess what customers need and use the final products to assess such clients’ preferences. Dell on the other hand used a non-implosive customer approach (Krames, 2003, p. 59). One of the products that were developed because of this strategy is the Olympic computer (Krames, 2003, p. 67).

The resistance that Dell Faced

One of the challenges and resistance that Dell faced was in the application of the customer-based strategy in the organization since some of the managers who opposed this approach forced their views on the customer (Krames, 2003, p. 59).

Andy Grove and His Contribution in the Field

In Chapter 5 of the book, Krames focuses on Andy Grove as the professional who is credited with the establishment of one of the most successful companies that are currently listed as public companies (2003). Grove is one of the pioneers in the Silicon Chip industry. He is also credited with the establishment of Intel Corporation, which was at the forefront during the development of Silicon Valley and the world’s leader in the development of semiconductors (Jackson, 1997).

Grove’s contribution in the industry was mainly in acting as a leadership figure through his immense knowledge and leadership skills. Such skills were especially necessary for the organization in times when drastic changes and decision-making were needed (Krames, 2003). He is one of the professionals who followed Moore’s law in the provision of chips from Silicon Valley. At the organizational level, he ensured that the most effective methods of manufacturing and marketing were utilized.

The resistance that Grove Faced

The challenge that Grove faced, which turned to be a source of resistance during his reign, was the evident lateness in engaging the market. The challenge was in terms of product development, which contributed to losses for the organization. He states that the company was late in the change to newer technology and movement to newer installations and factories.

Similarities and Differences

Dell is discussed as being focused on consumer satisfaction, with this strategy being the main driver for its success. On the other hand, Grove ensured that effective marketing was applied at Intel (Krames, 2003). Both were leaders in their respective capacities, thus leading to the development of a new way of doing things in organizations and industries where they operated. Dell computers followed the strategies developed by Dell. These strategies were focused on the development of products that consumers could relate to. In a contrast, Grove considered developing revolutionary products in the industry, thus setting the pace for the other market and industry participants (Jackson, 1997).

Factors that Influenced their Success

Intel can attribute its success to the qualities that were displayed by Grove, especially self-confidence and the belief that he held in his products. The institution adopted the same, thus applying outsiders’ perspectives and a belief in their undoing. Dell, however, believed in the power that consumers possess, thus developing strong links with them and doing away with the existing tradition of having middlemen in any process and supply chain. Some of the factors that led to the success that the two enjoyed are also similar. Both had a personal love for the industries in which they operated. They also had proficiency in the electronics industry. They also demonstrated strong leadership skills, with the environment in which they were in also facilitating the development of the skills. Both also demonstrated entrepreneurial skills at a young age with the driving slogan of never giving up in their ventures.

Reference List

Dell, M., & Fredman, C. (1999). Direct from Dell: strategies that revolutionized an industry. New York, NY: Harper Business.

Jackson, T. (1997). Inside Intel: Andy Grove and the rise of the world’s most powerful chip company. New York, N.Y.: Dutton.

Krames, A. (2003). What the best CEOs know 7 exceptional leaders and their lessons for transforming any business. New York, NY: McGraw-Hill.

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