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Industrial Marketing Strategies. MBA-ProMa Industrial Marketing Staffan Brege, Professor. A. Dynamic Effectiveness. Porter: Five Forces Framework. New entrants. Customers. Suppliers. Competitive rivalry. Substitutes. New Industrial Structures and Dynamic Effectiveness. - PowerPoint PPT Presentation
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Industrial Marketing Strategies
MBA-ProMa Industrial Marketing
Staffan Brege, Professor
A. Dynamic Effectiveness
Porter: Five Forces Framework
Competitive rivalry
Suppliers Customers
New entrants
Substitutes
New Industrial Structures and Dynamic Effectiveness
New industrial structures
Dynamic effectiveness
Increased operative effectiveness
New strategic positions
Operative plattforms- effecient sales org.- effecient marketing channel- CRM-systems- global logistics- purchasing portals
Strategic positions- markets/segments- market shares- product assortments- value chain position- competitive advantage
Mats Abrahamsson & Staffan Brege, 2000
Dynamic Effectiveness = Strategic Positions + Operative Plattforms
To Overcome Strategic and Operational Barriers
OperativeEffectiveness
StrategicEffectiveness
DynamicEffectiveness
Atlas CopcoExpansion from an efficient logistical plattform
ElectroluxTries to exploit operational synergies from acquisitions
EricssonAdapts logistical structures to new industry and new tehnology
DELLAffärsmodell som bygger på
- Direktförsäljning- Kundorderstyrd produktion
- Skalfördelar- Stark positionering
New companiesGoes directly into the dynamic position
Quick expansion based on efficient logistics - no old-fashioned infra-structure
Dynamic corner
1. Flexible production
2. New products in the same production system
3. Global logistics platform
4. Expansion to new markets
5. Administrative center
6. Internet strategy
Operational platformsStrategic opportunities
B. The Business Model Concept
The Business Model Concept
Market Positions
The Offering
Operational Platforms
What does the customer want?
What do we offer – value proposition?
What are our resources?
Market channel
Par
tner
s
Supply
How are we selling/ marketing?
Three cornerstones for success
Customer intimacy Innovation Operational excellence
C. Porter M: What is Strategy?
Definitions
Activities, then, are the basic units of competitive advantage. Overall advantage or disadvantage results from all a company´s acitivities, not only a few.
Operational effectiveness means performing similar activities better than rivals perform them. Operational effectiveness includes but is not limited to efficiency.
In contrast strategic positioning means performing different activities from rivals or performing similar activities in different ways.
Productivity Frontier
Relative cost position Nonprice byuer value delivered
Three Strategies
Strategic positions – can be based on customers´needs, customers´accessibility, or a variety of a company´s products or services
D. Prahalad and Hamel: Core Competence
Definition
Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technology
Unlike physical assets, competencies do not deteriorate as they are applied and shared. They grow.
Few companies are likely to build world leadership in more than five or six fundamental competencies.
The Tree Metaphor
Core competences are the root system Core products are the trunk and the major limbs SBUs are the smaler branches Products are the flowers and the leaves
Core Competence vs SBU Organisation
The tyranny of the SBU
Core competence
Unique Used in many markets Value to customers
Treshold capabilities and competences
Unique resources and core competences
Central vs Decentral
Corporate Country Local
Marketing X X
Sales X X
Service (X) X X
Development X
Production X
Logistics X (X)
IT-Systems X
Education X X
E. Stalk et al: Competing on Capabilities
Four principles of capability-based competition The building blocks of corporate strategy are not products
and markets but business processes Competitive success depends on transforming a company´s
key processes into strategic capabilities that consistently provide superior value to the customer
Companies crate these capabilities by making strategic investments in a support infrastructure that links together and transcends traditional SBU´s and functions.
Because capabilities necessarily cross functions, the champion of a capabilities-based strategy is the CEO.