Marketing Strategy

Chapter 6

Dell

6-1

Business MarketingTopics

• 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. 163-165]

• 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. 166-167]– 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 GridEx. 6-5, p. 170

Conceptual MapEx. 6-6, p. 171

Value Chain AnalysisEx. 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 CompetitionEx. 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 MarketsEx. 6-10, p. 178

Komatsu v. CaterpillarExhibit 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 OrganizationEx. 6-13, p. 183