market supremacy
DESCRIPTION
This ppt will give an overview of how to attain market supremacy through any of the three ways - operational excellence, innovation or customer intimacy. Illustrations of J&J, Sears etc are also given to validate it.TRANSCRIPT
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Three Paths to Market Supremacy
TEAM:Bharathi Swetha M (29010)Chandramouli (29011)Harini Audisekar (29015)Jyotsna (29018)Rachel Priyanka J (29038)Sathish Aravind (29047)
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Value Redefined…
In the past: Value = Quality + PriceAt present:Value = Quality + Price + Convenience +
Dependability + After Sales services + …..
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Core Values
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Operational Excellence Specific strategic approach to production and delivery of goods Competitive price, Minimal inconvenience Classic case – Success of Dell Some pioneers – Dell, Wal-Mart, American Airlines, FedEx
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Been there, Done that ! Success of GE – General Electric Loaded Dealer ~ Loyal Dealer Direct Connect Program Virtual Inventory System
Typical Characteristics:
High integration Low cost transaction processing Lean and Efficient
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Customer Intimacy
Customer intimacy describes the ability of a supplier to become accepted by the customer Customer Loyalty
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Customer Intimacy (Contd..)
• Long term vs. Short term customers• Customization• Responding to Individual customer needs• Training the employees based on their
strengths• Better Service• Solutions to problems• Examples: Home Depot, Kraft
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The three routes
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Examples
• Kraft and Home Depot • Kraft studied the customer’s interest by
maintaining 3 databases.• Information from Individual stores• Demographic• Geo Demographic
Achieved better results
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Product Leadership
• State-of-the-art products and services • Challenge themselves with:
Creativity Commercialization Be their own fiercest competitor
• They’d rather render their own product obsolete than let anyone else do it
• Continual search for new product or service possibilities
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J&J’s Viskaton, Inc.
• Embracing innovative realizable ideas• Willingness to incur high manufacturing and inventory costs• Fast reactions to situations
Managing marketing strategies Challenges placed by competitors
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J&J’s Vistakon, Inc. (Contd..)
• Vested interest in protecting the entrepreneurial environment created – hire, recruit and train employees• Maintain product leadership edge• Risk management
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Masters of Two
COMPANY OPERATIONAL EXCELLENCE
CUSTOMER INTIMACY
PRODUCT LEADERSHIP
TOYOTA
USSA
STAPLES
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Sustaining the Lead
• Successful Industry leader-Choose Value Discipline based on
Capabilities Culture
of the company as well as its competitor• Greater Challenge-to sustain that focus
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Value Discipline/Customer?
• Focus on Value Discipline = Focus on selecting category of customers
• Same Customer-can contribute in all 3 categories
VALUE DISCIPLINES CUSTOMEROperational Excellence Look for cheap price and
high convenience.
Customer Intimacy More concerned with obtaining precisely what they want.
Product Leadership Who values state-of-the-art products.
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What went wrong with Sears ?
•Operational Excellence•Fa
iled to restructure E2E distribution costs
•Customer Intimacy•Br
and Central : lack of clarity
•Product Leadership
•Ineffective promotion of fashion
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What went right for JCPenny ?
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Focus on the value discipline
• Focus on & excel in either
– Operational Excellence– Customer Intimacy– Product leadership
&Meet expected industry standards in the remaining two
SUCCESS WILL FOLLOW
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Queries