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CHAPTER 4

CHAPTER 4. The Microenvironment in an Era of Global Competition. Objectives. Understand microenvironmental four C’s Discuss customer economic utility Understanding various competitive strategies Describe the value chain Understand importance of global competition

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CHAPTER 4

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  1. CHAPTER 4 The Microenvironment in an Era of Global Competition

  2. Objectives • Understand microenvironmental four C’s • Discuss customer economic utility • Understanding various competitive strategies • Describe the value chain • Understand importance of global competition • Discuss global impact on the four C’s • Identify global cultural differences • Discuss structuring management for international marketing

  3. Competitors Collaborators Customers THE FOUR Cs Company

  4. The Four Cs: Company • Total organization • Interactive • Flexibility • Entrepreneurial approach • Intrapreneurial approach

  5. The Four Cs: Customers - Economic Utility • Form Utility • Place Utility • Time Utility • Possession Utility

  6. Form Utility Created by conversion of raw materials into finished goods or services.

  7. Convenience store Place Utility Created by making goods and services available where consumers want them.

  8. Time Utility Created by making goods and services available when consumers want them.

  9. Retailer Consumer Possession Utility Created by transfer of physical possession and ownership of a product to a consumer

  10. The Four Cs: Competitors • Levels • Product class • Product category • Brands • Type • Price • Form • Time • Location

  11. Four Types of Competition Price-based Quality-based Location-based Time-based

  12. The Four Cs:Collaborators • Alliances • Networks • Informal partnerships • Suppliers • Virtual corporations

  13. Raw Materials Supplier Transportation company Components Supplier Wholesaler Retailer Service Supplier The Value Chain DOWNSTREAM UPSTREAM PRIMARY ACTIVITIES C u s t o m e r s Company

  14. Core Competency “…is a proficiency in a critical functional activity that helps provide a company’s unique competitive advantage.” • Resource Concentration • Unique Value • Executed in-house • Competitive superiority

  15. Global Economy Imports Exports

  16. Price of beans in Columbia ? Wine production in France? Oil supply from Middle East & The Russian Federation? The Four Cs in a Global Economy: Company • Go/No Go • Competition is global

  17. Cultural values Religious beliefs Trends Government “policy” Four Cs in a Global Economy: Customers

  18. Four Cs in a Global Economy: Competitors • Intensified • “Home field” advantages • Japanese keiretsu • Tariffs and import quotas

  19. Direct Investment Exporting Joint Venturing High Capital Outlay/Risks Low Four Cs in a Global Economy: Collaborators

  20. The Four Cs in a Global Economy: Collaborators Central role of technology

  21. Review • Understand microenvironmental four C’s • Discuss customer economic utility • Understanding various competitive strategies • Describe the value chain • Understand importance of global competition • Discuss global impact on the four C’s • Identify global cultural differences • Discuss structuring management for international marketing

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