Karteikarten
Module 3
Karten in diesem Stapel (32)
- 1Business Strategies and Their Marketing Implications-Strategic Decisions at the Business-Unit Level
-How Do Businesses Compete?
- How Do Competitive Strategies Differ from One Another?
- Deciding When a Strategy Is Appropriate: The Fit between Business Strategies and the Environment
-How Different Business Strategies Influence Marketing Decisions
- What If the Best Marketing Programme for a Product Does Not Fit the Business’s Competitive Strategy? - 2strategic business units, or SBUs.The components of a firm engaged in multiple industries or businesses
- 3SBU Manager rolesSBU-level managers, particularly those in marketing and sales, bear the primary responsibility for collecting and analysing relevant information and generating appropriate strategies for their businesses.
- 4Creating SBUsfirm to decide how to divide itself into SBUs.
The managers in each SBU must then make recommendations about
(a) the unit’s objectives, (b) the scope of its target customers and offerings, (c) which broad competitive strategy to pursue to build a competitive advantage in its product-markets, and (d) how resources should be allocated across its
product-market entries and functional departments. - 5How Should Strategic Business Units Be Designed? (characteristics:)1. A homogeneous set of markets to serve with a limited number of related technologies.
2. A unique set of product-markets, so that no other SBU within the firm competes for the same customers with similar products.
3. Control over production, R&D and engineering, marketing and distribution
4. Responsibility for their own profitability. - 6three dimensions that define SBUsTechnical compatibility,
customer needs
personal characteristics or behaviour patterns - 7Business-Unit ObjectivesCompanies break corporate objectives into sub-objectives for each SBU. sub-objectives vary across SBUs according to the attractiveness of their industries, the strength of their competitive positions within those industries and resource allocation decisions. A similar process of breaking down overall SBU objectives into a set of sub-objectives should occur for each product-market entry within the unit
- 8Allocating Resources within the Business Unitthis allocation process is quite similar to allocating corporate resources across SBUs, many firms use similar economic value, value-based planning, or portfolio analysis tools for both.
- 9How Do Businesses Compete?business strategies are primarily concerned with allocating resources across functional activities and product-markets to give the unit a sustainable advantage over its competitors
- 10Generic Business-Level Competitive Strategies (Michael Porter)Michael Porter distinguishes three strategies – or competitive positions,
(1) overall cost leadership;
(2) differentiation
(3) focus, - 11Generic Business-Level Competitive Strategies (Robert Miles and Charles Snow)- prospector (focus on growth through developing of new products & markets.)
-Defender(concentrate on maintaining positions in established product-markets while paying less attention to new product development),
- analyser (maintain a strong position in its core product-market(s) but seeks to expand into new –related markets.)
-reactors (no clearly defined strategy.) - 12Prospector• Operates within a broad product-market • Values being a ‘first mover’ in new product and market areas • Responds rapidly to early signals of opportunity • Competes by stimulating and meeting new market opportunities, but may not maintain strength over time in all markets it enters.
- 13DefenderAttempts to locate and maintain a secure position in relatively stable product or
service areas. • Offers relatively limited range of products or services compared to competitors. • Tries to protect its domain by offering lower prices, higher quality or better service than competitors. • Usually not at the front of technological/new product development in its industry; tends to ignore industry changes not directly related to its area of operation. - 14Analyser• An intermediate type; makes fewer and slower product-market changes than prospectors, but is less committed to stability and efficiency than defenders. • Attempts to maintain a stable, limited line of products or services, but carefully
follows a selected set of promising new developments in its industry. • Seldom a first mover, but often a second or third entrant in product-markets related
to its existing market base – often with a lower-cost or higher-quality product or
service offering. - 15ReactorLacks any well-defined competitive strategy.
• Does not have as consistent a product-market orientation as its competitors. • Not as willing to assume the risks of new-product or market development as its
competitors. • Not as aggressive in marketing established products as some competitors.
• Responds primarily when it is forced to by environmental pressures. - 16Do the Same Competitive Strategies Work for Single-Business Firms and Start-ups?their competitive strategies should be
tailored to their unique resources & competencies & aimed at securing a
sustainable advantage over existing or potential competitors. Most start-ups do not have the resources to succeed by competing as a ‘me-too’ competitor. They compete primarily by developing a unique product or service for a customer segment not well served by competitors - 17Do the Same Competitive Strategies Work for Global Competitors?a single SBU may need to engage in different functional activities (including different strategic marketing programmes) – and perhaps even adopt
different organisational structures to implement those activities – across the various countries in which it competes. - 18Will the Internet Change Everything?the Internet will make it easier for firms to customise their offerings and personalise their relationships with their customers. Such personalisation should differentiate the firm from its competitors in the customer’s eyes and improve customer loyalty and retention.
- 19How Do Competitive Strategies Differ from One Another?Differences in Scope
Differences in Goals and Objectives
(Effectiveness, Efficiency, Adaptability)
Differences in Resource Deployment
Differences in Sources of Synergy - 20Appropriate Conditions for a Prospector StrategyA prospector strategy is particularly well suited to unstable, rapidly changing environments resulting from new technology, shifting customer needs, or both.
- 21Prospector StrengthsR&D, product engineering and other functional areas that identify new technology and convert it into innovative products; second,
marketing research, marketing and sales – functions necessary for the identification and development of new market opportunities. - 22Appropriate Conditions for an Analyser StrategyThe dual focus on New Product Dev and defending via low cost makes the
analyser strategy appropriate for well-developed industries that are still experiencing some growth and change as a consequence of evolving customer needs and desires or continuing technological improvements. - 23Appropriate Conditions for a Defender Strategyfor units with a profitable share of one or more major segments in a relatively mature, stable industry. initiate process improvements, product improvements, or line extensions to help protect and strengthen their established positions. But devote few resources to basic R&D this works best in industries where the basic technology is not complex or where it is well developed and unlikely to change dramatically over the short term.
- 24Types of Defender Strategies- Differentiated Defenders: business must be strong in those functional areas critical for maintaining its particular competitive advantages over time.
-Low-Cost Defenders :the business is more efficient than its competitors. The groundwork must be established early in the growth stage of the industry. - 25How Different Business Strategies Influence Marketing Decisionsstrategy influences the amount of resources committed to marketing and ultimately the budget available to an individual marketing manager within the business unit & influences both the kind of market and competitive situation that individual product-market entries
are likely to face and the objectives they are asked to attain. - 26Policies that will be different based on strategyProduct policies
Price policies
Distribution policies
Promotion policies - 27Product policies• Product-line breadth relative to
competitors
• Technical sophistication of products
relative to competitors
• Product quality relative to competitors
• Service quality relative to competitors - 28Price policies• Price levels relative to competitors
- 29Distribution policies• Degree of forward vertical integration
relative to competitors
• Trade promotion expenses as
percentage of sales relative to competitors - 30Promotion policies• Advertising expenses as percentage of
sales relative to competitors
• Sales promotion expenses as % of sales relative to competitors
• Salesforce expenses as percentage of
sales relative to competitors - 31What If the Best Marketing Programme for a Product Does Not Fit the Business’s Competitive Strategy?the ideal solution might be for the
whole SBU to change its strategy in response to shifting circumstances. As the product category matures BUT ransitioning the current org* structure and policies from what it has been to the new one may not be done quickly enough. - 32Solutions to structure adaptation limitations in case there is a need to change strategyform new prospector SBUs to pursue emerging technologies and industries.
Similarly, as individual product-market entries gain successful positions in grow-
ing markets, some firms move them from the prospector unit that developed them to an existing analyser or defender unit, or to a newly formed SBU, suited to reaping profits as their markets mature.
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- Karteikarten am Module 3, erstellt von Nicolette Kirsty am 01/03/2016.
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- Nicolette Kirsty
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