Blue Ocean Strategy at Henkel
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Transcript of Blue Ocean Strategy at Henkel
PAST PRESENT FUTURE SYNDICATE
Heber ManurungEdhita Paradevi
Erik SentosaLea Kusumawati
La Ode M Arief Akbar
Pitra Adhi Pamungkas
291093222910932429109326291093422910936729109380
BLUE OCEAN STRATEGY AT
HENKEL
Case Question
• What are the competitive advantages of Henkel?
• How can Henkel build its competitive advantage?
• Explain why the products of Henkel can be considered as having sustainable competitive advantage?
• What are the intangible resources of Henkel?
Case Background
Henkel market has slowed down
Raw material price has increase
Pressure to Henkel margins
One of competitor in adhesive business just about enter with very low price
Henkel should develop a long-term strategy
Company History
1876• Founde
d by Fritz Henkel
1878• Relocated
the company to Dusseldorf
1907• Persil became
the pillar for the company growth
1922• The product
range was extended to adhesive
1950• Henkel
entered the cosmetics market with acquisition of TheraChemie
On 2008, Henkel took over the Adhesives and electronic Materials business from Akzo Nobel, previously owned by National Strach.
Vision
A GLOBAL LEADERIN BRANDS ANDTECHNOLOGIES
Company Value
1. We put our CUSTOMERS at the center of what we do.
2. We value, challenge and reward our PEOPLE.3. We drive excellent sustainable FINANCIAL
performance.4. We are committed to leadership in
SUSTAINABILITY.5. We build our future on our FAMILY business
foundation.
Three Strategic Priorities
Achieve our full
business potential
Focus more on our
customers
WINNINGCULTURE
Strengthen our global
team
Resources
Tangible Resources
Intangible Resources
Tangible Resources
Financial• No data available
Organizational• Each product managers built
on sub-brands with their own marketing strategy
• Sales channel: do it yourself stores, specialist shops, drugstore and food retailing shops
Technological• External Thermal Insulation
Composite System
Physical• Relocated the company to
Dusseldorf to take advantage of logistics & better sales opportunities.
• Took over Adhesive and Electronic Material Business from Akzo Nobel.
Intangible Resources
Human• Preserve the tradition of
an open family company.
Innovation• Produced ‘low dust’ and
‘light weight’ tile adhesive.• Adding new features to
improve the product.
Reputation• Direct contact between
the producer and client for support product enhancement, technical advice, addressing complaint and warranty support.
• Brand Image
Capabilities Resources Rare Valuable Inimitable Nonsubstitua
bleTangible
- Financial ~ ~ ~ ~
- Organizational
√ √ √ √
- Physical √ √ x x
- Technological
~ ~ ~ ~
Intangible
- Innovation √ √ x x
- Human x √ x x
- Reputation √ √ √ √
Core Competencies
Organizational Resources
Reputational Resources
Weakness
Henkel’s Research and Development was laboratory-driven rather than customer-driven.Most women avoided DIY stores completely because the brand image and product description were very technical.
Red Ocean vs. Blue OceanRed Ocean Strategy Blue Ocean Strategy
• Compete in existing market space
• Create uncontested market space
• Beat the competition • Make the competition irrelevant
• Exploit existing demand • Create and capture untapped demand
• Make the value-cost trade-off • Break the value-cost trade-off
• Align the whole system of a firm’s activities with its strategic choices of differentiation of low cost
• Align the whole system of a firm’s activities in pursuit of differentiation and low cost
• Focuses on adapting to external trends as they occur
• Participate in shaping external trends over time