András BauerMarketing1 The Big Picture Marketing does not work in a vacuum and it is important to know, what is going on elswhere. Historically, Industrial.

Slides:



Advertisements
Similar presentations
Industry Analysis - Porter's Five Forces
Advertisements

External Analysis: The Identification of Industry Opportunities and Threats Porter, Five Forces and Industry Cycles.
Presented By:- Dharm Jeeta Singh
Chapter 2 The External Environment:
Lecture 2 External Environment Analysis & Globalisation.
Portor’s Five-Forces Analysis
Managing the Marketing Effort. Nov 20 th, This section covers: Marketing organisation/management Marketing implementation – drawing up a marketing.
Marketing and corporate strategies
MANAGEMENT RICHARD L. DAFT.
Strategic Management Searching for strengths & weaknesses 1 Session 5 Internal Scanning: Organizational Analysis A search for strengths & weaknesses 
Strategy Arc STRATEGY Environment Firm
Essentials of Management Chapter 4
Strategic Management Process
Chapter Objectives Strategic Planning and the Marketing Process CHAPTER Distinguish between strategic planning and tactical planning. Explain.
Strategic Management Strategic management requires an understanding of: Strategic management process How to develop an overall strategy Intended targets.
Strategy and Information Systems 11/02/2002. What is Strategy? Merriam Webster Dictionary –The science and art of military command exercised to meet the.
Chapter 2Copyright © 2010 by Nelson Education Ltd. Start-up and the Need for Competitive Advantage 2 PowerPoint Presentation by Ian Anderson, Algonquin.
Chapter 9 Designing Strategies Management 1e 9- 2 Management 1e 9- 2 Management 1e Learning Objectives  Explain how businesses use planning to.
SWOT ANALYSIS.
LMU Graduate School MBAH 673—New Product Design Spring 2014 Customer Needs Analysis & Multiple Strategic Demand Matrix.
Chapter 2 --Market Imperfections and Value: Strategy Matters u Wealth creation is impossible in a perfect market u Porter’s five forces can be used to.
3. Competitive Forces Model Companies must contend with five competitive forces which you need to analyse (Figure 4-6) : 1Threat of new entrants 2Bargaining.
Strategic ManagementEnvironmental Scanning, Corporate & Business Strategy 1 Assignment for Session 4  Dell articles. Link will be posted on web.
Ch2-1 Chapter 4: Competitor Analysis “What are they going to do?”
Business Driven Technology Unit 1
STRATEGIC CAPABILITY By: Vedika Saraf Swagata Giri Yukti Agarwal Vikram Pesswani Vivek Sood Srishti Seth Sumalya.
1 Business and Marketing Strategies
Preparing a business plan Workshop APL Leading a business Drives and values Context Actions Leadership styles.
© 2003 Pearson Education Canada Inc.
PESTLE vs. SWOT In contrast to a SWOT, PESTLE encourages you to think about the wider environment and what might be happening now and in the.
Business Strategy and Policy
External Analysis Industry Structure The Porter 5-Forces Model Success Factors.
“Business has only two basic functions - marketing and innovation.” - Peter Drucker.
Strategic analysis: searching for opportunities and threats Focus: Daisytek  Assignment: Study H&W Ch 3 Environmental scanning and industry analysis and.
Copyright © 2008 by Robert B. Carton Value Systems, Value Chains and Value-Based Management The Essence of Organizational Performance Is the Creation of.
©2003 Southwestern Publishing Company 1 The External Environment: Opportunities, Threats, and Industry Competition, and Competitor Analysis Michael A.
CH 2 STRATEGY ANALYSIS. Strategy Analysis Strategy analysis is an important starting point for the analysis of financial statements –Allows the analyst.
Strategic Management.
STRATEGIC MANAGEMENT ACCOUNTING The Balanced Scoreboard Companies must mobilize and deploy intangible assets to create and sustain competitive advantage.
Strategy Arc STRATEGY Environment Firm Search for resources and capabilities that provide the firm with sustainable competitive advantage.
The Entrepreneurial Process: Model of Competitive Forces Patterns of Entrepreneurship Analytical Tools.
The Marketing Environment and Competitor Analysis
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
C3 Information Systems, Organizations, and Strategy.
Strategic ManagementEnvironmental Scanning, Corporate & Business Strategy 1 Session 4: Today’s agenda  Put directional and business strategy in context.
Theories on Strategy IT & Business Models Chp. 3.
STRATEGIC MANAGEMENT II Porter’s five forces module.
Strategic Management Chapter 6. Every organization needs to have a “big picture” about where it is going and how it will get there. Strategy Strategic.
Strategy and applications Digital business strategy
Marketing II Chapter 2: Company and Marketing Strategy Partnering to Build Customer relationships
BUSINESS LEVEL STRATEGY ANALYSIS
Porter’s Five Forces Model
Strategic Management Review of the Basics
The Organisation in context
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
MANAGEMENT RICHARD L. DAFT.
Strategy, Organization Design, and Effectiveness
Strategy Formulation and Implementation
Strategic Marketing, 3rd edition
Policies and Planning Premises: Strategic Management
The Entrepreneurial Process: Model of Competitive Forces
The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis 1.
Introduction to Strategy
Strategy formulation and implementation
YOUR LOGO YOUR COMPANY NAME COMPETITIVE ANALYSIS.
Strategic Management B O S.
Chapter 8 STRATEGIC MANAGEMENT © Prentice Hall,
5: Competitive Advantage
What affects our business from the outside?
Strategic Marketing Planning
Presentation transcript:

András BauerMarketing1 The Big Picture Marketing does not work in a vacuum and it is important to know, what is going on elswhere. Historically, Industrial Organization looked at industry performance

András BauerMarketing2 STRUCTURE CONDUCT PERFORMANCE NATURE: SUPPLY AND DEMAND

András BauerMarketing3 Structure-Conduct-Performance In this logic the market structure (plus add culture to international) defines how firms « behave », i.e. compete extremely in an oligopoly. This behavior will have an impact on company performance, i.e. profits are usually higher in a monopoly or marketing is more intensive in an oligopoly.

András BauerMarketing4 Value Chain Analysis As an extension to aggregate industry analysis, one can look inside the firm and determine, what is a contribution of different activities. The Value Chain Model is usually still aggregate

András BauerMarketing5 PRIMARY ACTIVITIES MARGINMARGIN OPE RATI ONS IN- LOG ISTI CS OUT- LOG ISTI CS MAR KET ING/ SALES SER VICE FIRM INFRASTRUCTURE HUMAN RESOURCES MANAGEMENT TECHNOLOGY DEVELOPMENT PROCUREMENT SUPPORT ACTIVITIES THE MODEL OF A VALUE CHAIN

András BauerMarketing6 The Value Chain Is a good construct, but is clearly based on the old economy with more emphasis on physical creation of products and services « Supporting functions » may become the core of the value chain

András BauerMarketing7 An extended version of SCP: The Five Forces Model Based on empirical research on firm and industry cases several researcers worked on this concept. (e.g. Bain) Michael Porter (Harvard) made an industry competitive framework famous:

András BauerMarketing8 Rivalry within the industry New entrants Firms exiting Bargaining power of buyers Bargaining power of suppliers FIVE FORCES

András BauerMarketing9 The Five Forces Model Helps you to think strategically Looks at power, as moving force of economic competition Does not tell you, why firms provide more value to their owners

András BauerMarketing10 SWOT Analysis SWOT analysis is based on logic. Looks at the firm and its environment from the inside Strenghs and Weaknesses and from outside: Opportunities and Threats

András BauerMarketing11 SWOT Analysis What is important in the SWOT analysis is not the analysis only by itself, but the action plan as a consequence. Example: Higher prices than competitors, as a weakness. What can you do about it? What action is required? Or: A growing market, as an opportunity. What should be done to capture it?

András BauerMarketing12 Benchmarking Benchmarking helps to establish our comparative position and study the best practice. Benchmarking is an important exercise, since it will clarify, where we are. It can be used as an input to a SWOT analysis

András BauerMarketing13 Putting it together: The Balanced Scorecard The Balanced Scorecard is an ambitious tool or,method of organizing, to link performance to strategy and firm activities. Though it is very analytical, the journey could be more important than the destination, i.e. the firm experiences learning and synergy

András BauerMarketing14 Vision and Strategy Customer Financial Internal Business Processes Learning and Growth THE BALANCED SCORECARD

András BauerMarketing15 The Balanced Scorecard Philosophy It is more than a combination of financial and non-financial measures, it includes outcomes and outcome drivers. For all firms or business units the BC is unique and can be created from its own variables.

András BauerMarketing16 FINANCIAL MEASURES Revenue Growth and Mix Cost Reduction/Productivity Asset Utilization/Investment CUSTOMER MEASURES Product/Service Attributes Customer Relationship Image and Reputation INTERNAL MEASURES Quality and time-based metrics of performance LEARNING AND GROWTH MEASURES People, systems and organizational processes

András BauerMarketing17 Customer satisfaction Customer retention Customer profitability Customer acquisition Market share Account share Core outcome drivers and Internal Business Process Measures Financial Objectives Customer Outcomes

András BauerMarketing18 Customer Acquisition Customer Satisfaction Customer Retention Product Service Attributes Image Relationship Value = + + CUSTOMER OUTCOMES AND DRIVERS

András BauerMarketing19

András BauerMarketing20 THE ANSOFF MATRIX DEVELOP NEW SEGMENTS FOCUS ON COMPETITORS ’ CUSTOMERS FOCUS ON EXISTING CUSTOMERS FOCUS ON NEW CUSTOMERS IN EXISTING SEGMENTS

András BauerMarketing21 CUSTOMER TARGET CORE STRATEGY MARKETING MIX THE LOGIC OF SEGMENT FOCUSED STRATEGY

András BauerMarketing22 Specific to marketing analysis Market segmentation, the capability to identify, describe and analyze segments Product positioning, the understanding of how the value proposition works on customers Consumer behaviour analysis Customer analysis

András BauerMarketing23 LOOK AT THE BIG PICTURE FIND OUT HOW VALUE IS CREATED LOOK AT THE FIRM ANALYZE THE MARKET ANALYZE COMPETI TORS FIGURE OUT THE BEST VALUE PRO POSITION DEFINE THE SPECIFIC MARKETING MIX IMPLEMENT: TIME AND BUDGET EVALUATE FUTURE ACTIONS A ROAD-MAP FOR ANALYSIS