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The Microenvironment in an Era of Global Competition
CHAPTER 4 The Microenvironment in an Era of Global Competition 1
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Objectives Understand microenvironmental four C’s
Discuss customer economic utility Understanding various competitive strategies Describe the value chain Understand importance of global competition Discuss global impact on the four C’s Identify global cultural differences Discuss structuring management for international marketing
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THE FOUR Cs Competitors Collaborators Company Customers 2
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The Four Cs: Company Total organization Interactive Flexibility
Entrepreneurial approach Intrapreneurial approach 3
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The Four Cs: Customers - Economic Utility
Form Utility Place Utility Time Utility Possession Utility 4
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Form Utility Created by conversion of raw materials into finished goods or services.
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Place Utility Created by making goods and services available where consumers want them. Convenience store
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Time Utility Created by making goods and services available when consumers want them.
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Possession Utility Retailer Created by transfer of physical possession and ownership of a product to a consumer Consumer
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The Four Cs: Competitors
Levels Product class Product category Brands Type Price Form Time Location 5
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Four Types of Competition
Price-based Quality-based Location-based Time-based
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The Four Cs:Collaborators
Alliances Networks Informal partnerships Suppliers Virtual corporations 8
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The Value Chain DOWNSTREAM UPSTREAM PRIMARY ACTIVITIES C u s t o m e r
Transportation company Wholesaler Retailer Raw Materials Supplier Components Service Company 10
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Core Competency “…is a proficiency in a critical functional activity that helps provide a company’s unique competitive advantage.” Resource Concentration Unique Value Executed in-house Competitive superiority 12
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Global Economy Imports Exports 15
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The Four Cs in a Global Economy: Company
Go/No Go Competition is global Price of beans in Columbia ? Wine production in France? Oil supply from Middle East & The Russian Federation? 23
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Four Cs in a Global Economy: Customers
Cultural values Religious beliefs Trends Government “policy” 16
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Four Cs in a Global Economy: Competitors
Intensified “Home field” advantages Japanese keiretsu Tariffs and import quotas 21
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Four Cs in a Global Economy: Collaborators
Direct Investment Exporting Joint Venturing Capital Outlay/Risks High Low 21
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The Four Cs in a Global Economy: Collaborators
Central role of technology 25
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Review Understand microenvironmental four C’s
Discuss customer economic utility Understanding various competitive strategies Describe the value chain Understand importance of global competition Discuss global impact on the four C’s Identify global cultural differences Discuss structuring management for international marketing
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