Transcript ch04 Hollensen

Svend Hollensen
GLOBAL MARKETING
4th Edition
4 Development of the firm’s
international competitiveness
Value Innovation
Resources
Competencies
Competitive Benchmarking
Value Innovation
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Figure 4.4 The roots of
performance and
competitive advantage
Performance
Tangible Assets
Competitive advantage
P 110
Core competences
competences
Resources
Intangible Assets
Source: adapted from Jüttner and Wehrli, 1994.
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Figure 4.5 Illustration of
the core competence
P 111
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Competitive Benchmarking
Key Terms
Critical Success Factors:
P 112
Those Value Chain Functions where the
customer demands/expects the supplier to
have a strong Competence
Core Competencies:
Those Value Chain Functions where we as a
firm has a strong competitive position
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Competitive Benchmarking
Value Chain Functions (selected)
Importance to customers
How do customers rate the performance of our
firm?
Hoe do customers rate performance of key
competitor?
Figure 4.6 page 113
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What is this?
What term refers to value chain
activities in which the firm is regarded
as better than its competitors?
Core competences
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What is this?
What term refers to a technique for
assessing relative marketplace
performance compared with main
competitors?
Competitive benchmarking
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Figure 4.7 Model for development
of core competences
Stage 1: Analysis of situation
Stage 2: Scenarios
Stage 3: Objectives
Stage 4: Strategy and implementation
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Figure 4.7 Model for development
of core competences
Stage 1: Analysis of situation
Identification of competitive gaps
Innovation Capabilities
Stage 2: Scenarios
Stage 3: Objectives
Stage 4: Strategy and implementation
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Figure 4.7 Model for development
of core competences
Innovation Camp:
Stage 1: Analysis of situation
Identification of competitive gaps
Innovation Capabilities
Stage 2: Scenarios
Stage 3: Objectives
Stage 4: Strategy and implementation
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Stage 1:
Analysis of situation
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What is this?
What term refers to tough head-to-head
competition in mature industries which
often results in nothing but fighting over
a shrinking profit pool?
Red oceans
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What is this?
What term refers to unserved markets,
where competitors are not yet
structured and the market is relatively
unknown?
Blue oceans
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Value Innovation
The ligic of value innovation starts with an
ambition to dominate the market by offering
a tremendous leap in value.
Value innovation build on the
powerful commonalities in the
features that customers value.
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