market strategy (pdf)
Post on 29-Mar-2016
247 Views
Preview:
DESCRIPTION
TRANSCRIPT
Presented to you by Study Group A
RBV & Positioning School
HQWalls.com.ua (n.a.)
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
The Resource Based ViewStrengths
• Understanding the importance of ‘firm
resources’ (Barney, 1991, p. 101)
• Internal audit for resource value: VRIN
(Carter et al, 2010, p. 56)/ VRIO and
value chain (Barney and Hesterly, 2005)
• Resource allocation and reallocation
The Resource Based ViewStrengths
• Sources of competitive advantage and
ways to sustain them
• The impor tance o f knowledge
management (Carter et al, 2010, p. 61)
The Resource Based ViewWeaknesses
According to Dierickx and Cool (1989):
• time compression diseconomies
• asset mass efficiencies
• interconnectedness of asset stocks.
• asset erosion.
• causal ambiguity.
The Resource Based ViewWeaknesses
• tautological (Priem and Butler, 2001 a,b)
• difficulty in finding resources for
satisfying VRIN criteria
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
The Resource Based ViewApplication to Apple Inc.
Fernandes (2011), Oldcomputers (no date),
Loeb (2011),AppleMuseum (no date),
Moore (2008),Kochmanski (2011),
Atkins (2010),JoBrad (2010).
The Resource Based ViewApplication to Apple Inc.
• Steve Jobs
Fernandes (2011), Oldcomputers (no date),
Loeb (2011),AppleMuseum (no date),
Moore (2008),Kochmanski (2011),
Atkins (2010),JoBrad (2010).
The Resource Based ViewApplication to Apple Inc.
• Steve Jobs
• Product line consolidation
Fernandes (2011), Oldcomputers (no date),
Loeb (2011),AppleMuseum (no date),
Moore (2008),Kochmanski (2011),
Atkins (2010),JoBrad (2010).
The Resource Based ViewApplication to Apple Inc.
• Steve Jobs
• Product line consolidation
• Redesign and Reposition
Fernandes (2011), Oldcomputers (no date),
Loeb (2011),AppleMuseum (no date),
Moore (2008),Kochmanski (2011),
Atkins (2010),JoBrad (2010).
The Resource Based ViewApplication to Apple Inc.
• Steve Jobs
• Product line consolidation
• Redesign and Reposition
• Retain on earnings and Investment
Fernandes (2011), Oldcomputers (no date),
Loeb (2011),AppleMuseum (no date),
Moore (2008),Kochmanski (2011),
Atkins (2010),JoBrad (2010).
The Resource Based ViewApplication to Apple Inc.
• Steve Jobs
• Product line consolidation
• Redesign and Reposition
• Retain on earnings and Investment
• Creation of New MarketFernandes (2011),
Oldcomputers (no date),Loeb (2011),
AppleMuseum (no date),Moore (2008),
Kochmanski (2011),Atkins (2010),JoBrad (2010).
The Resource Based ViewApplication to Apple Inc.
• Steve Jobs
• Product line consolidation
• Redesign and Reposition
• Retain on earnings and Investment
• Creation of New Market
• Product DifferentiationFernandes (2011),
Oldcomputers (no date),Loeb (2011),
AppleMuseum (no date),Moore (2008),
Kochmanski (2011),Atkins (2010),JoBrad (2010).
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
The Positioning School• An outside–in model
• Porter (1998) explains the model with his 5 forces framework together with generic strategies.
• He also uses factors to understand the industry such as:– industry growth rate– technology and innovation– government– complementary products/services
(Porter, 1987), (Porter, 1998)
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
The Positioning SchoolStrengths
• Considers the macro environment with all its indicators
• ‘A framework for anticipating and influencing competition (and profitability) over time.’ (Porter, 2008)
• Applicable to all industries and helps investors to predict shifting’s in the industry structure (Porter, 1980)
• Understanding customer needs and implementing them on strategy (Ketels, 2005)
The Positioning SchoolWeaknesses
• Can end up being too broad of a view
• May lead to not analysing the most important force
deeply enough
• Not considering the company’s inner strengths
• Only analyses the macro environment
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
PC Market
The Positioning SchoolApplication to Apple Inc.
Rivalry among existing competitors
15wkc-italy (no date),MobileFone (no date),
Dell (no date),Selasa (2011),
Gohring (2010),Price (2011).
PC Market
• Main rivals: HP, Dell, Acer, Lenovo
The Positioning SchoolApplication to Apple Inc.
Rivalry among existing competitors
15wkc-italy (no date),MobileFone (no date),
Dell (no date),Selasa (2011),
Gohring (2010),Price (2011).
PC Market
• Main rivals: HP, Dell, Acer, Lenovo
• Market is fragmented – No leader
The Positioning SchoolApplication to Apple Inc.
LEADER
Rivalry among existing competitors
15wkc-italy (no date),MobileFone (no date),
Dell (no date),Selasa (2011),
Gohring (2010),Price (2011).
PC Market
• Main rivals: HP, Dell, Acer, Lenovo
• Market is fragmented – No leader
• Consolidation (Compaq ➠ HP, IBM ➠ Lenovo)
The Positioning SchoolApplication to Apple Inc.
Rivalry among existing competitors
15wkc-italy (no date),MobileFone (no date),
Dell (no date),Selasa (2011),
Gohring (2010),Price (2011).
PC Market
• Main rivals: HP, Dell, Acer, Lenovo
• Market is fragmented – No leader
• Consolidation (Compaq ➠ HP, IBM ➠ Lenovo)
• Growth in sales volume driven by lower prices
(economies of scale)
The Positioning SchoolApplication to Apple Inc.
⇪Sales Volume
Rivalry among existing competitors
15wkc-italy (no date),MobileFone (no date),
Dell (no date),Selasa (2011),
Gohring (2010),Price (2011).
Threat of substitutes
• Tablets, netbooks, smar tphones, sony
playstation
• Apple offers a variety of products that
often have overlapping utilisation
• ‘Easier product accessibility’ (Porter, 2008)
The Positioning SchoolApplication to Apple Inc. PC
Market
Apple (2011b)
Threat of new entrants
• Eastern Countr ies – new entrants
competing on price
• New entrants are not a significant threat
for Apple since it is a ‘Premium Brand’
The Positioning SchoolApplication to Apple Inc. PC
Market
Apple (2011b)
Bargaining power of suppliers
• Low bargaining power of suppliers
against Apple
• Apple is being their own supplier for
almost every part of their products
• Intel is the only supplier that Apple
depends on
The Positioning SchoolApplication to Apple Inc. PC
Market
Apple (2011b)
Bargaining power of buyers
• ‘The digital hub strategy’ – Apple is creating
products that supports the new technology
lifestyle
• ‘Brand image’ – Apple minimises the
bargaining power of buyers. They believe
customers will pay certain amount for
‘perceived value’ (exhibit 1-c)
The Positioning SchoolApplication to Apple Inc. PC
Market
Apple (2011b)
• SanDisk, Creative and Samsung – cheaper
products
• Apple gets the competitive advantage with
iTunes
• Apple differentiates iPod with cool design
The Positioning SchoolApplication to Apple Inc.
MP3 Market
Rivalry among existing competitors
Apple (2011d),Apple (2011e)
• This is the biggest threat for iPod from
Porter’s five forces
• Smartphones
The Positioning SchoolApplication to Apple Inc.
MP3 Market
Threat of substitutes
Apple (2011d),Apple (2011e)
• Very low
The Positioning SchoolApplication to Apple Inc.
MP3 Market
Threat of new entrants
Apple (2011d),Apple (2011e)
• Apple decreased the power of suppliers by
up-front deal with Intel and Micron, Apple
insured the best price for their main cost
component (flash memory)
The Positioning SchoolApplication to Apple Inc.
MP3 Market
Bargaining power of suppliers
Apple (2011d),Apple (2011e)
• Lowers the bargaining power of buyers by
creating an eco-system around their
products (iTunes, dockstations, cases etc.)
The Positioning SchoolApplication to Apple Inc.
MP3 Market
Bargaining power of buyers
Apple (2011d),Apple (2011e)
Rivalry among existing competitors
• New market – no existing rivalry
The Positioning SchoolApplication to Apple Inc.
Smartphone Market
Apple (2011a)
Threat of substitutes
• Kindle, e-book, netbook
The Positioning SchoolApplication to Apple Inc.
Smartphone Market
Apple (2011a)
Threat of new entrants
• Future penetration of rivals (HP, Dell)
The Positioning SchoolApplication to Apple Inc.
Smartphone Market
Apple (2011a)
Bargaining power of suppliers
• There is low bargaining power of suppliers
against Apple
The Positioning SchoolApplication to Apple Inc.
Smartphone Market
Apple (2011a)
• Eco-system (App Store)
The Positioning SchoolApplication to Apple Inc.
Bargaining power of buyersSmartphone Market
Apple (2011a)
• New market - no existing rivalry
The Positioning SchoolApplication to Apple Inc.
Tablet Market
Rivalry among existing competitors
Apple (2011c)
• Kindle, e-book, netbook
The Positioning SchoolApplication to Apple Inc.
Tablet Market
Threat of substitutes
Apple (2011c)
• Future penetration of rivals (HP, Dell)
The Positioning SchoolApplication to Apple Inc.
Tablet Market
Threat of new entrants
Apple (2011c)
• Apple replaced its microprocessor
supplier – Intel by producing their own
improved microprocessor A4
The Positioning SchoolApplication to Apple Inc.
Tablet Market
Bargaining power of suppliers
Apple (2011c)
• Currently there is low bargaining power of
buyer because there is no existing
competition
The Positioning SchoolApplication to Apple Inc.
Bargaining power of buyersTablet Market
Apple (2011c)
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
The Position school is the most appropriate strategy perspective for
marketing!
The Position school is the most appropriate strategy perspective for
marketing!
is it?
• In the light of the current market situation and the five forces explained above, the ‘positioning school’ is applicable to Apple in the way that it uses Porter’s suggestions to position themselves in the market as differentiators
• On the other hand, the strategy does not fit very well with Apple in terms of core competencies (innovation) ➠ RBV
Implications of the RBV on Apple Inc.
Conclusion
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Implications of the RBV on Apple Inc.
Conclusion
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Conclusion• Steve Jobs responded to the outside factors
(positioning school) and restructured the company using internal resources (RBV)
• Brand is bigger than its products – symbols, logo. It is no longer a computer company. It is a lifestyle company
• Apple found a good balance between the two strategies and it is taking the most applicable parts of both to create its own strong, successful strategy
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
Introduction&
the RBV
Implications of the RBV on Apple Inc.
Discussion
IntroductionStrengths &
Weaknesses of the RBV
Application of the RBV on Apple Inc.
the Positioning School
Strengths & Weaknesses of
the PS
Application of the PS on Apple Inc.
Discussion Conclusion References
References15wkc-italy (no date) ‘Acer-New logo’, 15wkc-italy [Online], Available at: http://liten.be//Gjt7T (Accessed 23 October 2011).
Apple (2011a) ‘Compare iPhone models.’, Apple [Online], Available at: http://liten.be//Vf1IA (Accessed 24 October 2011).
Apple (2011b) ‘iMac’, Apple [Online], Available at: http://liten.be//Lfj7T (Accessed 24 October 2011).
Apple (2011c) ‘iPad’, Apple [Online], Available at: http://liten.be//vaEbf (Accessed 24 October 2011).
Apple (2011d) ‘iPod classic’, Apple [Online], Available at: http://liten.be//2E7vE (Accessed 24 October 2011).
Apple (2011e) ‘iPod touch’, Apple [Online], Available at: http://liten.be//U79Tu (Accessed 24 October 2011).
AppleMuseum (no date) ‘Macintosh PowerBook 100’, AppleMuseum [Online]. Available at: http://liten.be//rTxU7 (Accessed 23 October 2011).
ReferencesAtkins, M. E. (2010) ‘Today’s R&D Charter : New Markets, Differentiated Products’, InventionMachine [Online], Available at: http://liten.be//VEa63 (Accessed 23 October 2011).
Barney, J. (1991) ‘Firm resources and sustained competitive advantage’, Journal of Management, 17 (1), pp.99-120 ProQuest [Online]. Available at: http://proquest.umi.com/ (Accessed: 20 October 2011).
Barney, J.B. and Hesterly, W. (2005) Strategic management and competitive advantage: concepts, Pearson Education.
Carter, C., Clegg, S.R. and Kornberger, M. (2010) A very short, fairly interesting and reasonably cheap book about studying strategy. London: SAGE.
Dell (no date) Logostage [Online], Available at: http://liten.be//0CX2d (Accessed 23 October 2011).
Dierickx, I. and Cool, K. (1989) ‘Asset stock accumulation and sustainability of competitive advantage’, Management Science, 35, pp.1504-1511.
ReferencesFahy, J. (2000) ‘The resource-based view of the firm: some stumbling-blocks on the road to understanding sustainable competitive advantage’, Journal of European Industrial Training, 24 (2/3/4), pp.94-103
Fernandes, J. (2011) ‘Steve Jobs – Timeline of One of the Greatest Entrepreneur in the World’, theTechLabs [Online]. Available at: http://liten.be//hmlt4 (Accessed 23 October 2011).
Gohring, N. (2010) ‘IBM to help telcos become cloud suppliers’, ComputerWorldUK [Online], Available at: http://liten.be//RN7Xk (Accessed 23 October 2011).
Graham, H., Gordon, G. (2005) ‘The resource underpinnings of competitive positions’, Journal of Strategic Marketing 13 (2), pp.93-116.
HQWalls.com.ua (no date) HQ WALLPAPERS [Online]. Available at: http://liten.be//WFhOf (Accessed 23 October 2011).
JoBrad (2010) ‘Three Circular Interlocking Arrows’, OpenClipart [Online], Available at: http://liten.be//0w8xG (Accessed 23 October 2011).
Journal of Strategic Marketing, 13 (2), pp.93-116 ProQuest [Online]. Available at: http://proquest.umi.com/ (Accessed: 19 October 2011).
Ketels, C. H. M. (2005), ‘Michael Porter’s Competitiveness Framework-Recent Learnings and New Research Priorities’, J Ind Compet Trade 2006, 6, pp.115-136.
ReferencesKochmanski, D. (2011) ‘Child of the Nineties, pt. 2’, DougKochmanski [Online], Available at: http://liten.be//mA224 (Accessed 23 October 2011).
Loeb, P. (2011) ‘My First Apple Product’, Paulloebmusic [Online]. Available at: http://liten.be//rZ0eL (Accessed 23 October 2011).
MobileFone (no date) ‘COMPAQ PRESSARIO ** 320GB Hard Drive, 2GB Ram, Windows 7 **’, bidorbuy [Online], Available at: http://liten.be//0JfPN (Accessed 27 October 2011).
Moore, C. (2008) ‘$19,800 Bentley Ego Laptop Remarkably Similar to 1990 Clamshell iBook’, Lowendmac [Online], Available at: http://liten.be//8ABXk (Accessed 23 October 2011).
Oldcomputers (no date) ‘Apple II’, OldComputers [Online]. Available at: http://liten.be//iN3w8 (Accessed 23 October 2011).
Porter, M. E. (1980). ‘Competitive Strategy: Techniques for Analyzing Industries and Competitors’, New York: Free Press.
Porter, M. E. (1987), ‘From competitive advantage to corporate strategy’, Harvard Business Review, 65 (3), pp.45-59.
ReferencesPorter, M. E. (1998), ‘The competitive advantage of nations’, New York: Free Press.
Porter, M. E. (2008). ‘The Five Competitive Forces That Shape Strategy’, Harvard Business Review, January [Online]. Available at: http://liten.be//52eVZ (Accessed 19.10.2011).
Price, E. (2011) ‘Lenovo’s 23-Inch Tablet: Useful or Useless? (UPDATED)’, TechnoBuffalo [Online], Available at: http://liten.be//u3nLp (Accessed 23 October 2011).
Priem, R. L. and Butler, J. E. (2001a) ‘Is the Resource-Based Theory a Useful Perspective for Strategic Management Research?’, Academy of Management Review, 26 (1), pp.22-40.
Priem, R. L., and Butler, J. E. (2001b) ‘Tautology in the Resource-Based View and Implications of Externally Determined Resource Value: Further Comments’, Academy of Management Review, 26 (1), pp.57-66.
Selasa (2011) ‘Hp Logo’, HP-logo-info [Online], Available at: http://liten.be//08dJs (Accessed 23 October 2011).
Thank you!
Thank you!Any questions?
top related