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Published by KHA E-Library, 2023-06-11 09:46:49

The REAL_Business Acumen Holistic Approach

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The REAL_Business Acumen Holistic Approach

Gain Creators Pain Relievers Products & Services Gains / Prefers Pain Points Target Markets FIT Profiles To create value for your business, you need to create value for your customer. To sustainably create value for your customer, you need to continuedly create value for your business. Value Map Customer Profile Copyright © 2023 PeerapongAramvareekul 58

62 Strategic Management Tools and Techniques • Brand and trust • Quality • Leaders • Technologies S = Strengths • Centralized decision model • Change resistant by culture • No processes & standards • Unclear direction and goals W = Weaknesses • Industry growth • Market trend and expansion • AEC and geographical advantage • Collaboration (win-win) O = Opportunities • Rapid change to industry/market entry and barrier requirements • Economy and competition • Government policies T = Threats By Harvard Business School & Kenneth R. Andrews Strategic Business Development – FUNDAMENTAL Copyright © 2023 PeerapongAramvareekul

64 Strategic Management Tools and Techniques The five forces framework helps describe how a firm can use these forces to obtain a sustainable competitive advantage, either lower cost or differentiation. Companies can maximize their profitability by competing in industries with favorable structure. Porter’s Five Force Strategy Strategic Business Development – FUNDAMENTAL Copyright © 2023 PeerapongAramvareekul

66 Product Positioning Positioning Right ! A form of marketing practices to present the benefits of the product to a particular target audience. Utilize (apply) market research and focus groups techniques to determine which audiences to target based on favorable responses to the product. Perform different activities from competitors or perform similar activities in different ways to achieve sustainable competitive advantage. Copyright © 2023 PeerapongAramvareekul

67 Positioning Right ! Specific Locations: countries, states, cities, towns, neighborhoods, etc. Specific Identities: gender, age, race, religion, family size, ethnicity, income, education, etc. Psychological Characteristics: subconscious or conscious beliefs, motivations, priorities, etc. Specific Behavioral Patterns: lifestyles, routine reactions, ways of living, etc. MARKET SEGMENTATION TARGETING Markets Customers Products POSITIONING Unique / Differentiate Trade-Offs Fit Activity Mapping Copyright © 2023 PeerapongAramvareekul

68 Uniqueness Perceived by Customers Low Cost Position Industry Wide Specific Segment Only STUCK IN THE MIDDLE Differentiation Overall Cost Leadership Strategic Target Strategic Advantage Focus Porter’s Generic Competitive Strategy The above figure is known as Porter's three generic strategies. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources. Porter's generic strategies detail the interaction between cost minimization strategies, product differentiation strategies, and market focus strategies. Positioning Right ! Copyright © 2023 PeerapongAramvareekul

69 Uniqueness Perceived by Customers Low Cost Position Industry Wide Specific Segment Only Broad Differentiation Overall Cost Provider Strategic Target Strategic Advantage Five (5) Generic Competitive Strategy Focused Low-Cost Focused Differentiation Best-Cost Provider Strategy Positioning Right ! Copyright © 2023 PeerapongAramvareekul

71 Three (3) Key Principles: 1. Strategy is the creation of a unique and valuable position, involving a different set of activities. • Example: Jiffy Lube, Carmike Cinema 2. Strategy requires you to make trade-offs in competing – to choose what not to do. • Example: Neutrogena 3. Strategy involves creating “fit” among a company’s activities. “Fit” drives both competitive advantage and sustainability; when activities mutually reinforce each other, competitors cannot really imitate them. • Example: Southwest Airline vs Continental Lite Positioning Right ! Activity Mapping Strategic Positioning Copyright © 2023 PeerapongAramvareekul

72 Strategic Positioning: Low cost Offers short-haul Point-to-point service between midsize cities and secondary airports in large cities Targeted customers = “to serve price- and convenience- sensitive travelers” Choose to perform activities differently or to perform different activities from competitors • Fast turnarounds at the gate of only 15 minutes • Able to keep planes flying longer hours than competitors • Provide frequent departures with fewer aircraft • Using a standardized fleet of 737 aircraft boosts the efficiency of maintenance • Does NOT offer the followings: o meals, assigned seats, interline baggage checking, premium classes of service Positioning Right ! Copyright © 2023 PeerapongAramvareekul

74 Strategic Positioning: Low cost & Ready-to-assemble products Offer trade off service for cost Targeted customers = “young furniture buyers who want style at low cost” Choose to perform activities differently or to perform different activities from competitors • Self-service store walk-through model based on clear, in-store displays • Products displayed in room-like settings • “Do it themselves”; next to showrooms is a warehouse section with products in boxes on pallets. Customers are expected to do their own pickup and delivery. • Offers extra services: o In-store child care o Extended hours Positioning Right ! Copyright © 2023 PeerapongAramvareekul

79 Blue Ocean Strategy Blue Ocean Strategy Blue Ocean Strategy was developed by W. Chan Kim and Renée Mauborgne who are professors at INSEAD and co-directors of the INSEAD Blue Ocean Strategy Institute. Copyright © 2023 PeerapongAramvareekul Key Idea: Unlock new demand Create Uncontested market space Make the competition irrelevant Sustain profitable growth Strategic Business Development – Blue Ocean Strategy

80 Blue Ocean Strategy: PRODUCTS & SERVICES MARKETS & CUSTOMERS Blue Ocean (uncontested) Red Ocean Blue Ocean (uncontested) Blue Ocean (uncontested & undefined) Existing New Existing New Copyright © 2023 PeerapongAramvareekul Strategic Business Development – Blue Ocean Strategy

81 Blue Ocean Strategy: Blue Oceans; Critical is opportunity. Identify unknown market space, untainted by competition. Create uncontested space that makes competition irrelevant. Invent and capture new demand, look into new groups of customers. Offer customers a leap in value while also streamlining costs. Results = nice profits, speedy growth, and brand equity. Red Oceans; The known market space. Industry boundaries are defined and accepted. Competitive rules of game are well understood. As the space gets more and more crowded, profits and growth are reduced. Products turn into commodities, competition increases. Companies try to outperform their rivals in order to grab a greater share of existing demand. Copyright © 2023 PeerapongAramvareekul Strategic Business Development – Blue Ocean Strategy

83 Blue Ocean Strategy: CASE STUDY - Cirque du Soleil Cirque du Soleil (Canadian Entertainment Company) 1 st Tagline: “We reinvent the circus”. Traditional circus business has been hit by: - Alternative kinds of entertainment; sport events, TV, video games, internet, etc. - Rising sentiment; by the animal rights groups, against the use of animals. - Rising of the control and cost on key supplies; star performers who can draw in the crowds. Three (3) Attracted Traditional Circus Factors : - Clowns - Tent - Classic Acrobatic Acts “Dramatic Mix of Circus Arts & Street Entertainment” Copyright © 2023 PeerapongAramvareekul Strategic Business Development – Blue Ocean Strategy

87 - cost + value + value - cost The use of real animals Cost of the animal care High cost of key performers Cost to move around from place to place Blue Ocean Strategy: CASE STUDY - Cirque du Soleil Combination of circus and opera business New customerbase (adult) Sophistication to stage-design Technology integrated to the story Copyright © 2023 PeerapongAramvareekul Strategic Business Development – Blue Ocean Strategy

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