Opening the Valve: From Software to Hardware

Situation Analysis
1. Valve has been quite effective due to its one of a kind association structure. It has
been an extremely open, non-hierarchical organization where occupation titles and
specific organisational charts were non-existent, employee time was 100% self-
assigned. It was an organization totally without titles unlike most of the organisations.
The organization was focussed on creating and sustaining new thoughts, as opposed
to duplicating a similar item. Be that as it may, in any event, when individuals at
Valve didn't have a title, they were exceptionally clear with the meaning of their
activity. The association had a Cabal structure which really were project teams. These
cabals were sometimes as basic as set of people rolling their desks together for a
couple of hours to address a client need – or as complicated as a gathering of people
strategizing to bring Valve software into hardware. Workers at Valve were urged to
take up new challenges and there was no dread of failure as failure at Valve was
constantly accepted as a learning opportunity. Valve had a very different hiring model
where T-shaped employee structure was favoured where the employees were
generalists and experts. It had a unique methodology to compute employee
compensation. All of these could be the main reasons of Valve being a successful
organisation.

2. Valve understood that there is only limited development in the market where they had
an edge earlier due to non-accessibility of PCs in living rooms and changing focus in
client inclinations to portable hardware. It expected Valve to move its organisational
way of working and expected it to move to a mechanistic structure for efficiency and
specialization. To sustain in the hardware market, strategic choices must be taken like
identifying core capabilities and competitive edge in this space. Differentiation
system should be utilized by Valve to make a mark in the market. This was mainly
because cost advantage was prevalent amongst its competitors.