Professional Documents
Culture Documents
Marketing
Internationalization theories and developing of the
firms
international competitiveness
Suhard Amit
MBA RMIT ( Aus )
Dip Business Management ( Aus )
ternational And Global Marketing Content outline
The worst error in strategy is to compete with Competitor on the same dimensions
Efficiency
(ROI,
Cash flow)
Performance advantage
Price advantage
High
[yellow tail]
offering level
Budget Wines
Eliminat
e/
Reduce
low
Use of enological Above-the- Aging Vineyard Wine Wine Easy Ease of Fun &
Price terminology line prestige
and distinctions marketing
quality
and legacy
complexity range drinking selection Adventure
in wine
communication
In 2010 McDonalds
Reduced operational cost and corporate expenses
was setting new
Renegotiating advertising contracts with media and
sales records
Affordable Pricing Press
despite a global
Replaced company owned vehicles with more fuel
economic slowdown
efficient models
and declining
Dollar menu pricing US / 100 Yen Menu Japan
consumer
confidence in the
United States. Grilled chicken salads, Chicken snack wraps,
Wide Menu
variety and Sandwiches, Lemon Shrimp burgers, Premium range
More than 60 of coffee Espressos, Cappuccino's and lattes good
beverage choices
Million customers as Star bucks
visited one of the
MC 32,000
restaurants in 117
countries each day 24 Hours drive through, Double drive through lanes,
which recorded Convenience 25,000 new locations
$22.7 Billion
revenue
Primary activities
Directly involved in delivery of a product or service
Economies of scale
Learning
Capacity utilization
Linkage among activities
Inter-relationships among business units
Firms policy of cost or differentiation
Geographical location
Institutional factors (regulation, union activity,
taxes)
Core competencies
Discuss the value chain for Srilankan Airlines. What are the
key elements in the value chain ?
Discuss the value chain for Air Asia budget air line. What
are the key elements in the value chain ?
Competitive advantage begins with..
Is it unique to us ?
Step 2. Easy or difficult to copy ?
Barriers to Imitation Does the competition have the
same thing ?
The competitive advantage cycle
Operational Excellence
Step 3. Product Leadership
Value proposition Customer Intimacy
of competitive Innovations
advantage Product Performance
Value marketing
Step 4. Focus on core competition
Establishment of Features, Advantages and
competitive
Benefits
advantage
Competitive Advantage Model
Resources
Cost
advantage Value
Distinctive
Competencies Or Creatio
n
Differentiation
advantage
Capabilities
Critical success factors
Expansion strategies
Vertical / backward
Integration
Market segments
A B C D E F
Product offering
Product Development
1 Market Development
Business Horizontal Horizontal Business
outside Diversificatio 2 Integratio
industry n within
n
3 industry
5
Forward /
6 Vertical
integratio
n
Buyers
business Suhard Amit@ Next BS MB
Expansion strategies; (3) diversification
strategies
Specific advantage
owned by the
organisation over its COMPETITIVE ADVANTAGE
competitors that help
them maximise Lower Cost Differentiation
business results (Industry-wide)
Uniliver Apple
Walmart Samsung
Johnson & Johnsons baby
Body Shop
(Segment specific)
Focused
Cost Focus
Differentiation
Narrow
Mont Blanc
E bay
Victoria Secrets
Amazon
Rolex
BMW
(Industry-
Cost leadership
(Industry-
Differentiation
(Segment specific)
Aspirations
Fast Delivery
Actual Product:
Credit
Actual Product Also called the tangible or formal product
Features Eg. The car, brand name / Quality /
Packaging / Design / Features
Design
Core product /
Benefit Warranty Augmented product
Service
The add ons or extras / Value additions
Quality
Brand Name
COMPETITIVE ADVANTAGE
Geographic segmentation
Lower Cost Differentiation
COMPETITIVE SCOPE
(Industry-
COMPETITIVE ADVANTAGE
Geographic segmentation
Lower Cost Differentiation
COMPETITIVE SCOPE
(Industry-
competitiveness
(Segment specific)
Narrow
"Improving ourselves
by learning from
others."
Competitor Benchmarking
Technique for assessing relative market
place performance compared to another
competitor or a set of competitors
Benchmarking is the
practice of being
humble enough to
admit that someone
else is better at
something and wise
enough
American to try
Productivity and and
Quality
Center-1988
learn how to match
and even surpass them
Why Benchmarking ?
Performance
Improvement
Meeting Creative
Quality Thinking
Standards
Benchmarking
Innovation Keep Pace with
In Science and
Management Technology
Methods Changes
Cost Competitive
Reduction Strategy
Benchmarking Methodology
Look for Benchmarking Opportunities
Everywhere
Best Practice
Overlap Competitive
Industry leaders
Top performers with
similar operating
characteristics
Functional Internal
Top performers Top performers
regardless of industry within company
Aggressive innovators Top facilities
utilizing new within company
technology