© 2007 John Wiley & Sons Chapter 8 - Alternative Value Propositions PPT 8-1 Alternative Value...
-
Upload
quintin-knapp -
Category
Documents
-
view
220 -
download
1
Transcript of © 2007 John Wiley & Sons Chapter 8 - Alternative Value Propositions PPT 8-1 Alternative Value...
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-1
Alternative Value Propositions
Chapter Eight
Copyright © 2007 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-2
Business Strategy Challenges
• A real customer value proposition?• A perceived customer value proposition?• Is the value proposition feasible?• Is the value proposition relevant to customers?• Does it represent a sustainable point of
difference?
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-3
Strategic Options
Value Propositions
Figure 8.3
BeingGlobalBeingGlobal
Emotional/Self-Expressive
Benefits
Emotional/Self-Expressive
Benefits
BrandFamiliarity
BrandFamiliarity
QualityQuality
ValueValue
NicheSpecialist
NicheSpecialist
CustomerIntimacy
CustomerIntimacy
CorporateSocial
Programs
CorporateSocial
Programs
SystemsSolutions
SystemsSolutions
Attribute/Benefit
Attribute/Benefit
DesignDesign
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-4
Niche Specialist
ConcentratingResourcesand Energy
ConcentratingResourcesand Energy
CompetingWith LimitedResources
CompetingWith LimitedResources
Support aStrategicPosition
Support aStrategicPosition
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-5
Product Quality Dimensions
1. Performance
2. Conformance to specifications
3. Features
4. Customer support
5. Process quality
6. Aesthetic design
Figure 8.2
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-6
Signals of High Quality
• High quality needs to be communicated• Communication by signals• Signals:
– Tomato Juice—thickness– Cars—sound of door closing– Banking—professional attitude of people– Supermarkets—produce
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions
Stock Market Reaction to Brand Equity (BE) & ROI
-20%
-10%
0%
10%
20%
30%
40%
Large Loss Loss Gain Large Gain
ROI Change
BE Change
Sto
ck R
etu
rn
Figure 8.3
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-8Figure 8.4
The Value Option
No-Frills Scale ExperienceProducts/ Operations Economies CurveServices Effect
No-Frills Scale ExperienceProducts/ Operations Economies CurveServices Effect
ValuePerceptions
ValuePerceptions
CostAdvantage
CostAdvantage
Low-CostCultureLow-CostCulture
The ValueOption
Imperatives
The ValueOption
Imperatives
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-9
Creating a Cost Advantage(or Avoiding a Cost Disadvantage)
• No-Frills Product/Service
• Operations
• Scale Economies
• The Experience Curve
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-10
Key Learnings
• Business strategies usually cluster around a limited number of value propositions, such as superior attribute, appealing design, offering complete system solutions, social responsibility, a familiar brand, a superior customer relationship, a specialist niche, superior quality, and superior value.
• A value proposition needs to be communicated effectively and supported by a cost advantage, which can be based on a no-frills offering, operations, scale economies, and/or the experience curve.
• Superior quality, which has been shown to drive stock return, has to be continuously addressed through processes and programs and transferred into quality perceptions.
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-12
Ancillary Slides
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-13
“Ever since Morton’s put a little girl in a yellow slicker and declared, “When
it rains, it pours,” no advertising person worth his or her salt has had any excuse to think of a product as
having parity with anything.”-Malcolm MacDougal,Jordan Case McGrath
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-14
“If you don’t have a competitive advantage, don’t compete.”
-Jack Welch, GE
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-15
“You can’t depend on your eyes when your imagination is out of focus.”
-Mark Twain
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-16
“Be willing to make decisions. That’s the most important quality in a good leader. Don’t fall victim to what I call the ‘ready-aim-aim-aim syndrome.’
You must be willing to fire.”
-T. Boone Pickens
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-17
“The first man gets the oyster, the second man gets the shell.”
- Andrew Carnegie
© 2
007
Joh
n W
iley
& S
on
s
Chapter 8 - Alternative Value Propositions PPT 8-18
“Never follow the crowd.”
- Bernard M. Baruch