Marketing Strategy Chapter 6 Dell 6-1

Business Marketing Topics Key Elements of Business Strategy SWOT Analysis The Five Forces of Competition Sustainable Competitive Advantage Firm Characteristics that enable Learning and Creation of Dynamic Strategies

Why A Strategy? Elements of Business Strategy Product Markets –Growth Options in the Marketplace [Ex. 6-1, p. 159] Market Penetration Product Development Market Development Diversification Resources Objectives and Plans

Elements of Business Strategy (cont.) –Additional Facets of a Stable of Businesses Resource Allocation Synergy Final Words on Business Strategy –Elements of a Strategic Plan »Product markets served »Resource commitments »Objectives and plans for each functional area

Developing Strategy The Process for Strategies [Ex. 6-2, pp ] Situation Analysis –SWOT Analysis Must be –Honest and objective –Broad in focus –Multiple time horizons –Perceptions from several individuals –Example of SWOT Analysis [Ex. 6-3, pp ] –SWOT Recap - Thorough look at organ.

Continued Model Two Ex. 6-2, p. 164

Continued Model Three Ex. 6-2, p. 165

Developing Strategy (cont.) The Mission –Mission Statement [Sample statements, Ex. 6-4, p. 168] Strategic Spectroscopy –Wants/Gets Grid [Ex. 6-5, p. 170] –Conceptual map [Ex. 6-6, p. 171] –Supply Chain Analysis [Ex. 6-7, p. 171]

Wants – Gets Grid Ex. 6-5, p. 170

Conceptual Map Ex. 6-6, p. 171

Value Chain Analysis Ex. 6-7, p. 171

Understanding Competitive Pressures Five Forces of Competition [Ex. 6-8, p. 173] –Rivalry among firms in the industry –Powerful customers –Powerful suppliers –Threat of substitutes –Threat of potential entrants Barriers to Entry [Ex.6-9, p. 175] Barriers in Flux Spotting and Defending against Potential Entrants

Five Forces of Competition Ex. 6-8, p. 173

Strategic Implications of the Five Competitive Forces Cautions and Limitations –Sustainable Advantage? [Ex. 6-10, p. 177] Organizational Strengths –Superior stakeholder satisfaction –Strategic soothsaying –Positioning for speed –Positioning of surprise –Shifting the rules of competition –Signaling strategic intent –Simultaneous and sequential strategic thrusts

The Ability to Disrupt Markets Ex. 6-10, p. 178

Komatsu v. Caterpillar Exhibit 6-1, p. 179

The Organizational Context for Competing Organizational Types [Ex. 6-11, p. 180] –Prospector –Defender –Analyzer –Reactor Market Orientation Systematic gathering of information customers and competitors, present and potential Systematic analysis of the information for the purpose of developing market knowledge Systematic use of such knowledge to guide strategy recognition, understanding, creation, selection, implementation, and modification –Unique Character –Market Orientation Payoffs Product vs. Service Orientation, Ex. 6-12, p. 182

Organizational Learning and Memory What is Learning? Managing Organizational Learning Multiplicative learning model [Ex. 6-13, p. 183] –Visionary Leadership –Target and Trajectory –Information and Value Systems –Creating and Striving –Execution

Requisites for the Learning Organization Ex. 6-13, p. 183