1 / 22

Industrial Marketing Strategies

Industrial Marketing Strategies. MBA-ProMa Industrial Marketing Staffan Brege, Professor. A. Dynamic Effectiveness. Porter: Five Forces Framework. New entrants. Customers. Suppliers. Competitive rivalry. Substitutes. New Industrial Structures and Dynamic Effectiveness.

fredericka-gaines
Download Presentation

Industrial Marketing Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Industrial Marketing Strategies MBA-ProMa Industrial Marketing Staffan Brege, Professor

  2. A. Dynamic Effectiveness

  3. Porter: Five Forces Framework New entrants Customers Suppliers Competitive rivalry Substitutes

  4. New Industrial Structures and Dynamic Effectiveness New industrial structures Dynamic effectiveness

  5. Dynamic Effectiveness = Strategic Positions + Operative Plattforms Increased operative effectiveness Strategic positions - markets/segments - market shares - product assortments - value chain position - competitive advantage Operative plattforms - effecient sales org. - effecient marketing channel - CRM-systems - global logistics - purchasing portals New strategic positions Mats Abrahamsson & Staffan Brege, 2000

  6. Electrolux Tries to exploit operational synergies from acquisitions Atlas Copco Expansion from an efficient logistical plattform Ericsson Adapts logistical structures to new industry and new tehnology New companies Goes directly into the dynamic position Quick expansion based on efficient logistics - no old-fashioned infra-structure DELL Affärsmodell som bygger på - Direktförsäljning - Kundorderstyrd produktion - Skalfördelar - Stark positionering To Overcome Strategic and Operational Barriers Dynamic Effectiveness Strategic Effectiveness Operative Effectiveness

  7. Dynamic corner Operational platforms Strategic opportunities 6. Internet strategy 5. Administrative center 4. Expansion to new markets 3. Global logistics platform 2. New products in the same production system 1. Flexible production

  8. B. The Business Model Concept

  9. The Business Model Concept What do we offer – value proposition? What are our resources? What does the customer want? The Offering Operational Platforms Market Positions Market channel Supply Partners How are we selling/ marketing?

  10. Three cornerstones for success • Customer intimacy • Innovation • Operational excellence

  11. C. Porter M: What is Strategy?

  12. Definitions • Activities, then, are the basic units of competitive advantage. Overall advantage or disadvantage results from all a company´s acitivities, not only a few. • Operational effectiveness means performing similar activities better than rivals perform them. Operational effectiveness includes but is not limited to efficiency. • In contrast strategic positioning means performing different activities from rivals or performing similar activities in different ways.

  13. Productivity Frontier • Relative cost position • Nonprice byuer value delivered

  14. Three Strategies • Strategic positions – can be based on customers´needs, customers´accessibility, or a variety of a company´s products or services

  15. D. Prahalad and Hamel: Core Competence

  16. Definition • Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technology • Unlike physical assets, competencies do not deteriorate as they are applied and shared. They grow. • Few companies are likely to build world leadership in more than five or six fundamental competencies.

  17. The Tree Metaphor • Core competences are the root system • Core products are the trunk and the major limbs • SBUs are the smaler branches • Products are the flowers and the leaves

  18. Core Competence vs SBU Organisation • The tyranny of the SBU

  19. Core competence • Unique • Used in many markets • Value to customers Treshold capabilities and competences Unique resources and core competences

  20. Central vs Decentral Corporate Country Local Marketing X X Sales X X Service (X) X X Development X Production X Logistics X (X) IT-Systems X Education X X

  21. E. Stalk et al: Competing on Capabilities

  22. Four principles of capability-based competition • The building blocks of corporate strategy are not products and markets but business processes • Competitive success depends on transforming a company´s key processes into strategic capabilities that consistently provide superior value to the customer • Companies crate these capabilities by making strategic investments in a support infrastructure that links together and transcends traditional SBU´s and functions. • Because capabilities necessarily cross functions, the champion of a capabilities-based strategy is the CEO.

More Related