COMPANY ANALYSIS

1. MISSION STATEMENT:

1) what company will do

2) what customers will serve

3) what benefits you offer to customers

(use correct language and talk about why)

2. BCG MATRIX PROBLEM:

1) market share has no relation to do with ROI

2) external focus is static, not dynamic : 

it indicates that structure leads to competition leads to best practice

3. CORE COMPETENCY MODEL:

more current way of assessing a firm’s resources, especially how to use and coordinate different production skills and technologies

1) provide potential access to a wide variety of markets

2) make a significant contribution to the perceived customer benefits of the end product

3) difficult to intimate

advantage: include SWOT, human element and competition

disadvantage: vague/ too broad,  and there're still other source of a competitive advantage

4. HOW TO ACCESS CORE COMPETENCIES:

1) swot

2) area of assessment

5. HOW TO LEVERAGE CORE COMPETENCIES:

evaluate Product/Company fit

6. PROCESS OF CHANGING 

analyze----think----change

change not through educating, but through the use of feelings

7. THE RESOURCE BASED VIEW OF FIRM

-physical assets

-intangible assets

-capabilities

-human capital

8. RESOURCES TO PASS EXTERNAL MARKET TEST OF VALUE

1) inimitability

2) durability

3) appropriability

4) substitutability

5) competitive superiority

9. WHAT MAKES A RESOURCE COMPETITIVE VALUABLE

10. OBJECTIVE OF STRATEGY

fit between: resources, goals and market opportunities

11. ECONOMIC MOAT:

how likely a company is to keep competitors at bay for an extended period

COMPETITIVE ANALYSIS

1. IDENTIFY COMPETITORS: both direct and indirect ones

• levels: using product features

-form 

-category

-generic

-budget

• customer judgement: using consumer research

-similarity (perceptual map)

-consideration set

• customer behavior: using purchase records

2.  PORTER'S 5 FORCES MODEL

1) shows major threats

2) identify and enter market where competition is less severe

3) develop strategy to mitigate effect of 5 forces

--cost advantage

--brand equity

--create customer value through product differentiation

3. GAME THEORY

anticipate competitive response

4. OUTCOME OF PRICE-COMPETITION:

 price=marginal cost

no profit

solution: differentiation 

-horizontal (feature)

-vertical (quality)

5. HOW TO OBTAIN COMPETITIVE ADVANTAGE

1) monitor changes in the game

-customer research

-industry research

2) create loyalty (consumer switch cost)

-customer satisfaction

-brand loyalty

3) make outside entry unattractive

-cost advantage through economies of scales & learning curve

-advertising, invest in brand

-invest in R&D, capacity

-establish distribution network

6. COMPETITION ANALYSIS

1) identify competitors

2) understand industry

3) change outcome of the game

4) sustain competitive advantage