bpsm core compe. dist. channel

Download Bpsm Core Compe. Dist. Channel

Post on 14-Apr-2018

221 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    1/22

    Copyright 2004 South-Western. All rights reserved.

    31

    Resources, Capabilities and Core Competencies

    Resources Are a firms assets,

    including people and thevalue of its brand name

    Represent inputs into afirms production process,

    such as:

    Capital equipment

    Skills of employees Brand names

    Financial resources

    Talented managers

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    2/22

    Copyright 2004 South-Western. All rights reserved.

    32

    Resources, Capabilities and Core Competencies

    Capabilities The foundation of many

    capabilities lies in:

    The unique skills and

    knowledge of a firmsemployees

    The functional expertise ofthose employees

    Capabilities are often

    developed in specificfunctional areas or as partof a functional area

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    3/22

    Copyright 2004 South-Western. All rights reserved.

    33

    Examples of

    Firms

    Capabilities

    Table 3.3

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    4/22

    Copyright 2004 South-Western. All rights reserved.

    34

    Resources, Capabilities and Core Competencies

    Core Competencies Resources and capabilities that

    serve as a source of a firms

    competitive advantage:

    Distinguish a companycompetitively and reflect itspersonality

    Emerge over time through anorganizational process ofaccumulating and learning how todeploy different resources andcapabilities

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    5/22

    Copyright 2004 South-Western. All rights reserved.

    35

    Resources, Capabilities and Core Competencies

    Core Competencies

    Activities that a firm

    performs especially well

    compared to competitors

    Activities through which the

    firm adds unique value to its

    goods or services over a long

    period of time

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    6/22

    Copyright 2004 South-Western. All rights reserved.

    36

    Building Sustainable Competitive

    Advantage Four Criteria of

    Sustainable

    Competitive Advantage

    Valuable

    Rare

    Costly to imitate

    Nonsubstituable

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    7/22

    Copyright 2004 South-Western. All rights reserved.

    37

    The Four Criteria of Sustainable Competitive Advantage

    Valuable Capabilities Help a firm neutralize threats or

    exploit opportunities

    Rare Capabilities Are not possessed by many others

    Costly-to-Imitate Capabilities Historical: A unique and a valuableorganizational culture or brand name

    Ambiguous cause: The causes and

    uses of a competence are unclear

    Social complexity: Interpersonal

    relationships, trust, and friendship

    among managers, suppliers, andcustomers

    Nonsubstitutable Capabilities No strategic equivalentTable 3.4

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    8/22

    Copyright 2004 South-Western. All rights reserved.

    38

    Building Sustainable Competitive

    Advantage Valuable capabilities

    Help a firm neutralize

    threats or exploit

    opportunities Rare capabilities

    Are not possessed by

    many others

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    9/22

    Copyright 2004 South-Western. All rights reserved.

    39

    Building Sustainable Competitive

    Advantage Costly-to-Imitate

    Capabilities Historical

    A unique and a valuableorganizational culture or

    brand name Ambiguous cause

    The causes and uses of acompetence are unclear

    Social complexity

    Interpersonal relationships,trust, and friendship amongmanagers, suppliers, andcustomers

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    10/22

    Copyright 2004 South-Western. All rights reserved.

    310

    Building Sustainable Competitive

    Advantage Nonsubstitutable

    Capabilities

    No strategic equivalent

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    11/22

    Copyright 2004 South-Western. All rights reserved.

    311

    Outcomes from Combinations of the Criteria for Sustainable

    Competitive Advantage

    Table 3.5

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    12/22

    Channel and Distribution Tactics

    Bucklins definition of distribution

    Todays system of exchange

    Channel intermediaries

    Six basic channel decisions

    Selection consideration

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    13/22

    A channel of distribution

    comprises a set of institutionswhich perform all of the

    activities utilised to move a

    product and its title from

    production to consumption

    Bucklin - Theory of Distribution Channel Structure (1966)

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    14/22

    Negotiation

    Promotion

    Contact

    Transporting and storing

    Financing

    Packaging

    Money

    Goods

    Todays system of exchange

    Producers

    Users

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    15/22

    Channel intermediaries - Wholesalers

    Break down bulk

    buys from producers and sell small quantities to

    retailers

    Provides storage facilities

    reduces contact cost between producer and

    consumer

    Wholesaler takes some of the marketingresponsibility e.g sales force, promotions

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    16/22

    Channel intermediaries - Agents

    Mainly used in international markets

    Commission agent - does not take title of the

    goods. Secures orders.

    Stockist agent - hold consignment stock

    Control is difficult due to cultural differences

    Training, motivation, etc are expensive

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    17/22

    Channel intermediaries - Retailer

    Much stronger personal relationship with the

    consumer

    Hold a variety of products

    Offer consumers credit

    Promote and merchandise products

    Price the final product Build retailer brand in the high street

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    18/22

    Channel intermediaries - Internet

    Sell to a geographically disperse market

    Able to target and focus on specific segments

    Relatively low set-up costs

    Use of e-commerce technology (for payment,

    shopping software, etc)

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    19/22

    Six basic channel decisions

    Direct or indirect channels

    Single or multiple channels

    Length of channel Types of intermediaries

    Number of intermediaries at each level

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    20/22

    Selection consideration

    Market segment - must know the specificsegment and target customer

    Changes during plc(product life cycle) - differentchannels are exploited at various stages of plc

    Producer-distributor fit - their policies, strategiesand image

    Qualification assessment - experience and track

    record must be established Distributor training and support

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    21/22

  • 7/30/2019 Bpsm Core Compe. Dist. Channel

    22/22