Thinking outside the square: Innovation in business

Ellie Trobe

Dell’s business model through innovation

Dell established themselves successfully in the 1990s by making PCs available for Ansoff-matrixpurchase online. This grew their revenue triumphantly through to the millennium and they have acted creatively to ensure they continue to hold a competitive advantage.

One of the easiest ways to understand a company’s growth strategy is to look at each initiative in terms of Ansoff’s Matrix.

Three main initiatives were implemented by Dell 

1. IT consulting service | In addition to hardware and software, Dell looked into the customer service and consulting arena to further their reach to customers. The program was successful and has moved into data storage and management, communications and mobility for flexible IT solutions.

Where does it sit with Ansoff? Market penetration

2. B2B Marketplace | A business to business marketplace where discounted goods could be sold. Although the initiative did not succeed in being a sustainable source…

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