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
