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Kultur Dokumente
Faisal K. Qureishi
Agenda
Strategic Planning
Operational Planning
Marketing
Planning
Short Range or
Tactical
Planning
Long Range
Planning
Marketing Strategy
3. Formulating product-market
strategies
an organization is appropriately
viewed as:
a customer satisfying endeavor
not
a goods-producing or service delivery
enterprise.
Products and services are transient, as is often
the technologies or means used to produce and
deliver them. Basic customer needs are more
enduring. (Encyclopedia Britannica)
What business are we in?
COST
VALUE TO SUPPLIERS
WILLINGNESS
TO SUPPLY
The Value Chain
The value chain provides a map of firms capabilities
and allows systematic search for core competencies
Infrastructure
Activities
Support
Human Resources
Research and Development (Innovation)
Materials Procurement
Operations
Outbound
Marketing
Logistics
Inbound
Logistics
& Sales
Service
Primary Activities
Strategy and Coherence
Strategy
(Positioning)
Resources
Organization
and
Design
Capabilities
Tools for Building Competitive Advantage
COMPETITIVE
RARENESS
VALUE ADVANTAGE
NON-SUBSTITUTABLE INIMITABILITY
Core Competencies Require VRIS-O
Value do a firms resources and capabilities allow a firm
to respond to its environment?
Rare how many rival firms already possess this
resource/capability?
Inimitable do firms face a cost disadvantage in
obtaining this resource/capability compared to firms that
already have it?
Non-substitutable are there strategic alternatives?
Organization is the firm organized to exploit the full
potential of its resources/capabilities?
A Competitive Advantage enables a firm to:
Outperform competitors
Grow despite competitors
Competitive Advantage is found in:
Products that are different than competitors
Alternative distribution channels
Selective pricing and different cost structures
A Competitive Advantage should be:
Sustainable
Unique
Market responsive
Superior
Imitation
Too often firms make the mistake of imitating
other firms resource strengths and
capabilities to develop a competitive
advantage
Disadvantages of Imitation
Firms trying to imitate another firms core
competence are at a cost disadvantage
relative to rivals due to:
Unique Organizational Design
Human Capital
Cultural Differences
Building Blocks of Competitive
Advantage
Efficiency
Lower Costs
Innovation Quality
Higher Prices
Customer
Responsiveness
Competitive Advantage via Efficiency
Manufacturing Economies of scale/Learning
curve; Reducing variability
Infrastructure Multi-purpose
facilities/equipment/cutting-edge technology
R&D Manufacturing OR
Process innovation
Materials management
(Supply Chain) JIT, Strategic Alliance, etc.
Competitive Advantage via Quality
Manufacturing Trace and eliminate defects
Input from employees
Infrastructure State-of-the-art
R&D Manufacturing
Process & product innovation
Materials management
(supply Chain ). TQM, 6-Sigma etc.
Competitive Advantage via Innovation
Manufacturing Flexible
Responsive
Marketing Micro-marketing/Personalization