Transcript Atlas-Copco I

How H-P Reclaimed Its PC Lead Over Dell
I. Hiring Todd Bradley from PalmOne
II. “HP is fighting on the wrong battlefield”
 Shift of Channel Focus (ex: Store-exclusive notebook)
III. Migration of PC demand: Desktops  Notebooks
(different buying/using behavior)
IV. H-P needed to convince shoppers that retailer was
the better channel choice  Shift of H-P PC Positioning:
Product Focus  User Focus
(“The Computer is Personal Again”)
V. Promotion Shift: More Pull  More Push*
Two Promotional Strategies**
Pull Strategy
Push Strategy
Manufacturer
Manufacturer
1*
3
Channel members
2
Final users
(consumer or industrial)
*Numbers indicate sequence
of flows
1
Channel members
2
3
Final users
(consumer or industrial)
Promotion flow
Negotiation flow
Product flow
12
Think Outside the Redbox
• Different Channels for Movie viewing
• Why is Redbox so popular?
• The idea of self-service retailing:
– When does it work?
– New venture for Coinstar
• Future of video rental
• Redbox vs. Netflix
• Any good item for self-service retailing?
Dell’s Strategy for Growth*
1. Current Market Portfolio
* Business Model
2. Advantages of Dell Model
1. Cost efficiency of direct model
2. Customization & Responsiveness
3. Focus on detail
3. Three-Step Growth Strategy*
4. New Frontier for Dell: Consumer Electronics
Dell’s Strategy for Growth
5. Three Main Challenges for CE Market
1. No Customization and Less Responsiveness
2. Will People Buy CE Direct?
3. Dell’s Brand Equity for CE Product
Mike George’s two comments
6. Playing the OEM game (back page)
- Who are customers?
- Upside & Downside
- Response from resellers and small
manufacturers
Dell’s Strategy for Growth
7. Recent Performance (FT article in 2005)
1. Slowing growth
2. “Now Dell is the market.”
3. Heavy Reliance on PC segment
4. Slipping Price Advantage and Built-to-Order
System
5. Competitors have caught up
6. Dilemma for Dell
- Shoot low?
- Shoot high?
- Is Dell Model Obsolete for Now?
Dell To Rely Less on Direct Sales
(WSJ article in 2007)
• Dell’s Broad, Global Retail Push
– Selling Dell PC through Wal-Mart
• Why Go to Retail?
• What is happening to Its Direct business
model?
• “The Direct model has been a
revolution, but it is not a religion.”
- Michael Dell
Discounting Continues to Haunt Dell
(WSJ article in 2010)
• Revenue is up, but profit is down. Why?
– HP: Revenue is up and profit is also up
• Now no. 3 behind HP and Acer
• Share of total revenue from consumer
market: 2003 (???)  2010 (???)
• Compete against “white box”
Move Over, Coke
1. Key Challenges for small guys
2. Describe Bikoff’s Product Strategy
3. Describe Bikoff’s Marketing Strategy
* Positioning of vitaminwater
4. Describe Bikoff’s Marketing Channel
Strategy
1. Structure: types of stores, intensity, level
2. Management: support & relationship
After the Sale is Over
1. Brand Ownership Change
2. What happened to existing distribution
network of Vitaminwater?
3. What is the problem here?
4. How would you solve the problem?
5. Learning from the past: Snapple
Ping Golf Club
1. Through what type of channel intermediary are
Ping Clubs being sold?
2. What are key factors that drive Ping’s channel
choice?
3. What is the intensity of their distribution?
4. How would you describe Ping’s channel
Relationship management?
The Monster that Ate
Hollywood
• Key Word: Channel Evolution
– Supply side factor, demand side factor,
technology
• Changes in Movie Studios
• Changes in Studios’ Competitive Strategy*
– Movie Making Side
– Revenue Model (Distribution and Exhibition)
• Changes due to alternative movie distribution
channels:
– Marketing Channels:
– Products:
Video Case: The Monster that
Ate Hollywood
• Changes in Movie Studios
– cottage industry  global industry
• Changes in Studios’ Competitive Strategy*
– Movie Making:
• Changing Importance of Marketing vs. Movie Quality
• Create Buzz
• Opening Weekend
– Movie Production: Make a Safe Bet
Earnings Management and Relying on Big
Movie Stars
Video Case: The Monster that
Ate Hollywood
– Movie Distribution and Exhibition
– Movie Distributors: Part of Multinational Movie Studios 
Show only “Big Money” movies
– Movie Exhibition: Wide Release and Short-term
• Changes due to alternative movie distribution
channels:
– Channels: more vertical integration
– Products: build a franchise around a movie
– Markets: domestic  go International
• Topics for thoughts
– An example of another industry for this kind of business
model?
– Future of Movie Marketing Channel