Svend Hollensen GLOBAL MARKETING 4 th Edition 4 Development of the firm’s international competitiveness

Hollensen, Global Marketing 4e, © Pearson Education Value Innovation  Resources  Competencies  Competitive Benchmarking  Value Innovation

Hollensen, Global Marketing 4e, © Pearson Education Figure 4.4 The roots of performance and competitive advantage Resources Core competences competences Competitive advantage Performance Intangible Assets Tangible Assets Source: adapted from Jüttner and Wehrli, P 110

Hollensen, Global Marketing 4e, © Pearson Education Figure 4.5 Illustration of the core competence P 111

Hollensen, Global Marketing 4e, © Pearson Education Competitive Benchmarking Key Terms  Critical Success Factors:  Those Value Chain Functions where the customer demands/expects the supplier to have a strong Competence  Core Competencies:  Those Value Chain Functions where we as a firm has a strong competitive position P 112

Hollensen, Global Marketing 4e, © Pearson Education Competitive Benchmarking  Value Chain Functions (selected)  Importance to customers  How do customers rate the performance of our firm?  Hoe do customers rate performance of key competitor?  Figure 4.6 page 113

Hollensen, Global Marketing 4e, © Pearson Education What is this? What term refers to value chain activities in which the firm is regarded as better than its competitors? Core competences

Hollensen, Global Marketing 4e, © Pearson Education What is this? What term refers to a technique for assessing relative marketplace performance compared with main competitors? Competitive benchmarking

Hollensen, Global Marketing 4e, © Pearson Education Figure 4.7 Model for development of core competences Stage 1: Analysis of situation Stage 2: Scenarios Stage 3: Objectives Stage 4: Strategy and implementation

Hollensen, Global Marketing 4e, © Pearson Education Figure 4.7 Model for development of core competences Stage 1: Analysis of situation Identification of competitive gaps Innovation Capabilities Stage 2: Scenarios Stage 3: Objectives Stage 4: Strategy and implementation

Hollensen, Global Marketing 4e, © Pearson Education Figure 4.7 Model for development of core competences Stage 1: Analysis of situation Identification of competitive gaps Innovation Capabilities Stage 2: Scenarios Stage 3: Objectives Stage 4: Strategy and implementation Innovation Camp:

Hollensen, Global Marketing 4e, © Pearson Education Stage 1: Analysis of situation

Hollensen, Global Marketing 4e, © Pearson Education What is this? What term refers to tough head-to-head competition in mature industries which often results in nothing but fighting over a shrinking profit pool? Red oceans

Hollensen, Global Marketing 4e, © Pearson Education What is this? What term refers to unserved markets, where competitors are not yet structured and the market is relatively unknown? Blue oceans

Hollensen, Global Marketing 4e, © Pearson Education Value Innovation  The ligic of value innovation starts with an ambition to dominate the market by offering a tremendous leap in value.  Value innovation build on the powerful commonalities in the features that customers value.