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«is the manageria pr ess
deve ping and maintaining a strategi
it etween the rganizati n's
etives and res res and its
hanging market pp rtnities.
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misi n and Strategy
Sun Tze n Strategy
Strategi Marketing
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H w d es y r rrent What are the epeted
siness emphasis it & inania retrns y r
with indstry ! strategy?
pp rtnity and
mpetitive )
andsape?
*+, What strategi aternatives
# have y nsidered?
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Framew rk a Sess
Organisati n
Bsiness Panning and Deivery
Strategi
Pan
State Saes
Pans
misi n is a }ritia Driver
0 seed in the ng
term, r siness
needs a visi n h w
we wi hange and
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impr ve in the tre. (.'' '(
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³with t a visi n, the
pe pe perish´
0he visi n the
siness gives its
energy. "($
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ñ It heps m tivate s. '
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ñ It heps set the
direti n rp rate
and marketing
strategy.
maes nderpin a we d
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maes pr vide the stiiati n ehavi r and, there re, eert signiiant inene n
marketing deisi ns.
An eampe is pr vided y B0 Gr p - deining its vaes:
B0's ativities are nderpinned y a set vaes that a B0 pe pe are asked t
respet:
ñ We pt st mers irst
ñ We are pr essi na
ñ We respet eah ther
ñ We w rk as ne team
ñ We are mmitted t ntin s impr vement.
0hese are spp rted y r visi n a mmniati ns-rih w rd - a w rd in whih
every ne an eneit r m the p wer mmniati n skis and tehn gy.
A s iety in whih individas, rganisati ns and mmnities have nimited aess t
ne an ther and t a w rd kn wedge, via a mtipiity mmniati ns
tehn gies inding v ie, data, m ie, internet - regardess nati naity, tre,
ass r edati n.
Or is t aiitate eetive mmniati n, irrespetive ge graphy, distane, time
r mpeity.
S re: B0 Gr p p wesite
s t Co
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It pr vides an tine
h w the marketing pan
sh d seek t i the
missi n 1# #
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± at
It pr vides a means busi ss ar i maag m t
evaating and sreening a o ? b i v s i
the marketing pan; are
marketing deisi ns
nsistent with the
missi n?
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It pr vides an inentive t ± t
ru s tat gui
impement the marketing o o rat
pan
¥Strategy is the Ð and
an rganisati n ver
the
whih ahieves
Ð r the rganisati n
thr gh its nigrati n
within a haenging
, t meet the
needs
and t i
Ð epetati ns¥.
Strategi Adit
- ensring that the } mpany res res and
mpetenies are nderst d and evaated
} re } mpetene Anaysis
P rt i Anaysis
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mae }hain Anaysis
mae }hain Anaysis desries the ativities that take pae in a siness and
reates them t an anaysis the mpetitive strength the siness.
Mihae P rter sggested that the ativities a siness d e gr ped nder
tw headings:
0 $ - th se that are direty nerned with reating and deivering a
pr dt (e.g. mp nent assemy); and
20
!! , whih whist they are n t direty inv ved in pr dti n, may
inrease eetiveness r eiieny (e.g. hman res re management). It is rare r a
siness t ndertake a primary and spp rt ativities.
mae }hain Anaysis is ne way identiying whih ativities are est ndertaken
y r siness and whih are est pr vided y thers (¥ ts red¥).
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Primary Ativities
Primary vae hain ativities inde:
²
½
½
½
Spp rt Ativities
S
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½
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wer st ifferentiati n
Br a
0arget st
ifferentiati n
ea ers i
S e
ifferentiati n
Narr w st F s
0arget F s
Other }harateristis
} mpetitive Advantage
Sstantiaity
ñ Is it sstantia en gh t make a
dierene?
Sstainaiity
ñ }an it e netraized y mpetit rs
qiky?
Aiity t e everaged int visie
siness attrites that wi inene
st mers
nS urce: Strategic Marketing Management, Aakers)
Seeking } mpetitive Advantages
P siti ns advantage
ñ Speri r st mer vae
ñ L wer reative t ta st
Per rmane advantages
ñ }st mer satisati n, L yaty, Market
Share, Pr it
S res advantages
ñ Speri r skis & kn wedge, Speri r
res res, Speri r siness pr ess
WHR 0O }OMP0?
'
Whih st mers are y trying t target r attrat?
Whih are y wiing t serve, t wi n t spend
res res t attrat?
Whih w d y preer n t t serve?
!!
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Ge graphi imits t the
siness? !
L a, regi na, mti- *
Whih distriti n hannes
a, nati na,
wi y se?
internati na, r g a
What st mer segments
payer?
an they reah?
I a, whih aities?
'
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Breadth the pr dt ine?
Qaity the pr dt ine?
Pr dt ndes r a series nreated
pr dts?
}apaiity pat rm: assessment s res
mpetitive advantage (1/2)
- !
Brand/reptati n } a-} a
Physia asset
L ati n/¥spae¥
Privieged
assets Distriti n/saes netw rk
Brand/reptati n
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' Reati nship with ¥iense¥
'$ a at r
Inn vati n
}r ss-nti na
Distintive rdinati n
mpetenies
Market p siti ning
} st/eiieny
management 0aent
deve pment
!2% Assess y r vera p siti n reative t
!% nsre that these are the
the apaiities reqired t seed in the indstry.
apaiities reqired t seed in the
As , determine i these apaiities are reevant t
indstry. Use this ist as a th ght
the segments y serve
starter, add and deete as y see
appr priate
} mpetit r apaiity mparis n
!
Physia asset
L ati n/¥spae¥
Privieged
assets Distriti n/saes netw rk
Brand/reptati n
! Patent
Reati nship with ¥iense¥
a at r
Inn vati n
}r ss-nti na
Distintive rdinati n
mpetenies
Market p siti ning
} st/eiieny
management 0aent
deve pment
!5% } mpare the strengths and weaknesses
y r mpetitive p siti n vs. the neessary skis
²ort r¶s or s o Co titi
²ositio i
r
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P rter 5 F res
P rter¶s 5 F res } mpetitive
P siti n versi n #2
² rter¶s res } mpetitive
² siti n ntry Barriers
c n mies f Scale
Brand dentity
apital Requirements Rivalry Determinants
ndustry Gr th
Fixed sts
New Pr duct Differences
Determinants f Supplier P er ntrants Brand dentity
Sitching sts xit Barriers
Supplier V lume
mpact
F rard ntegrati n
Indstry
} mpetit rs
Sppiers Byers
Intensity
Rivary Determinants f Buyer P er
Buyer ncentrati n
Determinants f Buyer V lume
Substituti n Threat
Backard ntegrati n
Relative Price
Perf rmance Sstittes
Sitching sts
F res at w rk ramew rk
0
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ieretiati iuts mies sae
witi sts suiers a irms i te ²r rietar
r ut ierees
iustr
Bra ietit
²resee substitute iuts witi sts
uier etrati Caita requiremets
Im rtae ume t suier Aess t istributi
C st reatie t t ta urases i te iustr
20
.
Abs ute st aataes
Imat iuts st r ieretiati ²r rietar
eari ure
0reat rwar iterati reatie t treat Aess t eessar
iuts
bakwar iterati b
irms i te iustr
²r rietar
, w- st r ut esi
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Strategi Panning Link with
Marketing Panning
Bsinesses that seed d s y reating and keeping st mers.
0hey d this y pr viding etter vae r the st mer than the mpetiti n.
Marketing management nstanty have t assess whih st mers they are
trying t reah and h w they an design pr dts and servies that pr vide
etter vae (³ mpetitive advantage´).
0he main pr em with this pr ess is that the ³envir nment´ in whih
sinesses perate is nstanty hanging.
S a siness mst adapt t reet hanges in the envir nment and make
deisi ns a t h w t hange the marketing mi in rder t seed.
0his pr ess adapting and deisi n-making is kn wn as marketing
panning.
0
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pp rtnities/threats arising
that s idiy y r 7 9, r m at rs eterna t the
mpetitive p siti n?
siness
hat are y r BU¶s
assets/ mpetenies
that weaken y r
mpetitive p siti n?
, identiy ways that the irm an se its strengths t
rede its vneraiity t eterna threats.
7, estaish a deensive pan t prevent the irm's
weaknesses r m making it highy sseptie t eterna threats.
PS0 anaysis
A san the eterna mar -
envir nment in whih the mpany
wants t perate ( r perates) and
an e epressed in terms the
wing at rs:
ñ itia
ñ n mi
ñ
ia
ñ ehn gia
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BÐ
0ehn gy (' ' "* &
reakthr ghs Avaiaiity sstittes Priing Pr itaiity
}hanges in Dierentiaiity pr dts m me mae reati n
g vernment Rate gr wth Advertising/pr m ti n !
p iy/regati ns m atiity/yiaity New pr dts/R&D !$
D mesti (!!$ Distriti n
Internati na } nentrati n pr ders
!$
Imp rt mpetiti n pansi n/ ntrati n
Diversity pr ders ntry/eit
Fied/variae st strtre Aqisiti n/merger/ divestitre
}apaity tiizati n
ntry/eit arriers F rward/akward integrati n
'$ mertia int ventres
Bargaining p wer inpt L ng-term ntrats
sppiers (($
Bargaining p wer st mers } st ntr
L gistis
Pr ess R&D
Organizati n eetiveness
Deiniti n risks
(
:
ñ Gr p interati n.
ñ 0hr gh tehniqes ike dia ge and ski disssi n,
teams trans rm their etive thinking, earning t
m iize their energies and ati ns t ahieve mm n
g as, and drawing rth an inteigene and aiity greater
than the sm individa memers' taents.
Five disipines Peter Senge
$ *:
ñ Pe pe earn t etter nderstand
interdependeny and hange, and therey t
dea m re eetivey with the res that shape
the nseqenes r ati ns.
ñ Systems thinking is ased p n a gr wing dy
the ry a t the ehavi r eedak and
mpeity - the innate tendenies a system
that ead t gr wth r staiity ver time.
ñ 0 hep pe pe see h w t hange systems m re
eetivey and h w t at m re in tne with the
arger pr esses the natra and e n mi
w rd.
Pr et management - pr esses
Pr et management a pr ess
Pr et management pr ess
hain
Pr et management risk
anaysis
Sess Keys - Dep yment
Dep yment - } mpeting the Pan
Sess Faire
>Assign r es and resp nsiiities >N a ntaiity r dep yment
>}harge mid-eve management with >Make n attempt t ink with day-t -day
aigning wer-eve pans perati ns
>Make are h ies a t the >N t eing th r gh-g ssing ver the
ntents the pan and rm it wi detais
take
Sess Keys - } mmniati n
Impementing - II
Sess Faire
A ate res res r F s ny n sh rt term need r
impementati n res res
Ign re r av id hange
Manage the hange pr ess
N measrement system
vaate rests
Hide mistakes/ay ame;
Share ess ns earned; imited/n mmniati n
akn wedge
sesses thr gh pen and
reqent mmniati n
Sess Keys - Measrement
Strategi Measrement - I
Sess Faire
Assign r es and resp nsiiities N a ntaiity
Strategi Measrement - II
Sess Faire
Use measrement t mmniate Use measrement t ntr
p iy (new strategi direti n)
Re gnize when t pdate the pan P r timing and n t re gnizing
eterna res
Ð
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Beneits R ing F reasts