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Acquiring the Golden Fleece: A Comparison of Dell and Intel CEOs Successful Strategies to
Increase Market Share and Profit

Foundations for Doctoral Study in Business

BTM7101 -8
M. Voris, Ph.D
August 31, 2014



In the financial world, market share can make or break a corporation. Since the 1990s
two corporations were able to acquire and sustain dominant market share and high profits. The
competitive advantage is because of Chief Executive Officer (CEO), Michael Dell at Dell and
Andy Grove at Intel. The CEOs are transformative leaders able to translate intention into
reality and sustain it (Caldwell et al., 2012, p 176). Both leaders sought ways requiring
employees to reconsider current strategies and not focus on old ways to tackle new issues with
the products or services (Caldwell et al., 2012). The CEOs transformative leadership motivates
employees to embrace new ways to achieve high market shares and profits (Eghdamy, 2013).
One could say the companies found the mythical Golden Fleece. Why? Because both companies
took risk using new strategies or technology to become industrial giants in the global economy.
Both CEOs develop ways to beat the risks and develop a unique competitive advantage and
create value for the corporations. This paper will reveal the CEOs contributions to the companys
industry, the use of strategies to offset resistance to the companys goals, the leaders
professional similarities and differences, and discuss factors impacting the corporations success.


Michael Dell, CEO of Dell

Michael Dell, CEO of Dell, Inc. from a young age understood the importance of building
intimate customer relationships (Krames, J. A., 2003). The leader of Dell has a successful
Internet online business using direct model to sell computer preference to an individual
customer at low prices and provide quality customer service (Krames, J. A., 2003, p 59). Dells
decision to build computers only after a customer places an order, eliminates the middleman
resulting in lower prices, no bottleneck of inventory or problems with cash flow (Krames, J. A.,
2003). According to Riley (1999), Dell has almost reached his goal of 50% of market share on
Dells Web order system. Resistance Michael Dell had to address was within the company.
Employees were not as knowledgeable about the online process to order and distribute
computers and were not understanding customers preference or need (Krames, J.A., 2003) The
CEO develop ways for all employees to understand the online system of the company including
managers to form a more intimate customer relationship (Krames, J. A., 2003). Whereas,
Michael Dell focus was on technology using the Internet to increase market share, Andy Grove
at Intel strategy was focusing on preparing Intels employees to be ready for extreme change.

Andy Grove, CEO of Intel

As the CEO of Intel, Andy Grove, has the ability to strategize and wade through severe
changes that took place with the company. Upon realization Japans takeover of the memory
chip industry was a solid foundation, under the direction of Andy Grove, Intel left the memory
business and because dominant market share holders in the microprocessor chips (Krames, J.A.,
2003). According to Andy Grove ONLY THE PARANOID SURVIVE (Levy 1996, p. 63).
The CEO believes in keeping his employees thinking this way to keep a vigil watch for strategic


inflection points or 10x changes (Krames, J. A., 2003, p. 140). Andy Grover lesson to keep his
employees on their toes comes from the resistance of managers at the company not wanting to
leave the memory chip market or when staff support did not aggressively look at the result end of
the flaw in the microprocessor chip that Grover eventually had the company recalled. According
to Kraemer (2003), Grover learned how to minimize strategic inflection points and turn it around
to create positive goals for Intel. The result is Intel continues to be an influential player in the
microprocessor chip industry gaining market share and at the same time the prices are remaining
inexpensive (Levy, 1996).
Both Dell and Intel CEOs were able to use different strategies but with similar results to
increase market share and keep the product prices low for consumers. The leaders similarities
include being transformative leaders with the ability to convert visionary goals to competitive
advantages and increase the market share (Eghdamy, 2013). The difference in the company
leaders is Michael Dell focus is on customer relationships, quality customer service, low prices,
and elimination of the middleman, Andy Grove focus is on Intel employees being paranoid in
preparation of future strategic inflection points of change (Kraemer, J.A., 2003). The factors
impacting Dells success was the ability of Michael Dell to see the future in using technology,
the Internet to provide online quality products services for customers at lower prices and
elimination of the middleman, bottleneck inventory, and cash flow problems (Kraemer, J. A.,
2003). Factor impacting Intels success has to take into consideration the personal opinion of
Any Grove to keep all employees paranoid and stay alert to identify and minimize drastic
changes and at the same time turn major changes around to positive goals for Intel. The ability to
convert companies into obtaining major market share is because of the transformative leadership
of both CEOs. The result is acquisition of the Golden Fleece and high market shares and profits.



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