Download presentation
Presentation is loading. Please wait.
Published byBeverly Webster Modified over 6 years ago
1
Professor, Marketing and International Business
How Business Intelligence and Outsourcing Build New Product Development Capabilities for Firms in Emerging Markets Dr. Satyendra Singh Professor, Marketing and International Business
3
Why is Business Intelligence (BI) important?
Globalization to compete globally Preferred over competitor Firms must be known for something! Meet customers’ needs Need to build capability 3
4
To build capability Market Orientation (MO) Strategy
Outsourcing (OS) Strategy Combine the two Competition vs. Cooperation 4
5
What is MO strategy? Meets customers’ needs: Current and Future
Develops more desirable products $ Takes long-term perspective MO firms capability But if you do it alone, Expensive and time consuming 5
6
But in Emerging Markets…
Meet customers’ needs price Demand > Supply!? (Not always) purchasing power Not obsessed with change No culture of product return Wal-Mart Please return products It’s business intelligence 6
7
Market Orientated Products…
TATA NANO World’s cheapest car $3,000
8
Market Oriented Products
MO China 8
9
World’s Slimmest Watch
9
10
We need to add value to be market oriented
Commodity Goods Service Experience 1₡-2₡ ₡-25₡ ₡-$ $3 - $4 Experience may be more market oriented than commodity 10
11
different value propositions
Different brands have different value propositions Firms must be known for their distinct capabilities 11
12
Different MBA, Different Value
At our university in Canada, you need to complete any 5 mandatory courses of your choice from: Arts Science Business Humanities Social Science So students could customize their degrees Market Orientation 12
13
Mercedes Customization Value Creation
14
900 vs. 90 parts. 0 in electronic watch
14
15
Franck Muller: Master of Complications
15
16
Lamborghini bicycle: $25,000 -- Lightest
16
17
Beyond Lifetime Value 17
18
What you received What you ordered 18
19
If you cannot do it yourself, Outsource.
But it should be strategic outsourcing 19
20
Quick response to market demand/turbulence
What is Strategic Outsourcing? Outsource activities despite firms’ ability to make in-house, so focus core capability Quick response to market demand/turbulence 20
21
Why Outsource? Costs lead time On time delivery
Fixed costs and wages BE point Competitive, if benefits > costs Business performance 21
22
borrowed capabilities
However, OS may existing capabilities, but borrowed capabilities May mask the declining skills, Because firms may not learn 22
23
So, what can we outsource?
Anything not critical to your mission statement call center, HR, Accounting?? Even luxury brands outsource But strong brand/value/quality offsets negative perception of outsourcing e.g., Made in China… It’s a strategic choice 23
24
Market Orientated Products…
MO through OS Designed in USA, China made
25
Market Orientated Products…
OS ATM, Post office, local suppliers 25
27
Trade-off Between MO and OS
↑ Costs Time Complex Expertise OS Performance MO Costs ↑ Savings Manufacturing Risks Capability 27
28
Strategy: Competition vs. Cooperation
Comp/Coop? Comp/Coop? Create value Capability OS Manage risks Take risks MO Take ↓ risk OS HI MO I II IV III LO Initially OS to be MO MO MO Comp? Coop? LO OS HI
29
Questions? Dr. Satyendra Singh s.singh@uwinnipeg.ca
CANADA
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.