Export Planning Institute _II_BPM Joris Leeman©, 2010 Export Planning How to write an international...

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export PlanningHow to write an international marketing plan

Internationalisation of the firm

Chapter 3: Business Strategy and Internationalisation


Export PlanningLearning objectives (learning tasks) Ch. 3

At the end of the chapter you are able to:

1. understand how business strategy and export policy are linked together;

2. describe the competitive environment of a company with Porter’s 5 forces model;

3. outline a company’s growth strategy in terms of Ansoff and Hamel & Prahaled;

4. explain a company’s product assortment in terms of its product life cycle and BCG matrix;

5. describe the three competitive strategies of Treacy & Wiersema and its accompanying value proposition; review the ways towards a competitive advantage based on Ohmae.

Export Planning Institute _II_BPM Joris Leeman© , 2010Slide 11

• How does the organisation wants to grow in future?

• How do you react to your competitors?

• What are your core competences and how do you create a competitive advantage?

• How do you manage the different product lines?

Export PlanningStrategic questions for a company


ExistingStrategy

FutureStrategic

Positioning

Trends

Product /ServicePortfolio

Analysis

DESTEP

StrategicModels

Export PlanningDevelopment of a strategy


Rising health awareness and therefore

risk of low switching behaviour Low product differentiation

High bargaining power Few large wholesale and retail businesses PepsiCo is fully dependent on providing products that meet customer demands and trends

Global raw material sourcing possible Suppliers are replacable PepsiCo = big customer with high bargaining power

Strong rivalry in all markets

Global average market shares - Coca Cola: 43,7% - PepsiCo: 31,6% - Cadburry: 15,8%

Suppliers Buyers

Rivalry

Threats of substitutes

PepsiCo has to face huge rivalry between its competitors as well as threads on the demand-side.

New entrants

Current economical crisis little incentive to invest in new markets

Export PlanningExample of Porter‘s 5-forces for PepsiCo


Product / Market – combinations for growth

Penetration

ProductInnovation

MarketDevelopment

Diversification

Market

Product

NewCurrent

Current

New

Organisation?

ReactionCompetition?

Capabilityorganisation?

ProcessInnovation (ICT)

Export PlanningAnsoff – Growth model


The battle to ‘master‘ four core competences

Open spaces

The best in10 year’s time

White spaces

Super chance

Market

CoreCompetences

NewCurrent

Current

New

Four battles to ‘master‘:• Resources• Capabilities• Competitive advantage• Strategy

Export PlanningCore competences – model of Hamel & Prahaled


?Questionmarks

Sleeping dogs

Stars

Relative market share

Large Small

Market growth

High

Low Cows

Boston Consultancy Group - matrix

Export PlanningBCG – matrix for product portfolio management


Fresh dairy water

Baby nutrition

Medical Nutrition

Sales by product line

Medical Nutrition shows highest potential in the future

Export PlanningExampe of a BCG – matrix for Danone


Export PlanningGE / McKinsey – matrix for product portfolio mgt

Competitive strength of SBU

Marketattractiveness

H

H

M

M

L

L

SELECT / REVIEW

INVEST / GROW

HARVEST / DIVEST

- Market size- Market share- Growth direction- Positioning PLC


Cost focus

Costleadership

Differentiationfocus

Differentiation

Competitive advantage

Competitivescope

DifferentiationLowercost

Broadtarget

Narrowtarget

Export PlanningPorter‘s generic competitive strategies


Standardized product or service * Limited, everybody is treated same - service

Relative low price * Easy to get by the customer

State-of-the-art product or service * New type of product or service

Premium price * Can be acquired fast by the customer

Total solution for customer * Tailor made set up for customer

Premium price * Provide data to the supplier

(Operational Excellence)

(Best Product)

(Customer Intimacy)

Export PlanningTreacy & Wiersema‘s competitive strategies


Export PlanningChapter review questions (10 min.)

1. What model can you use to describe the competitive environment? What three competitive strategies have been derived from that?

2. What model can you use to define how a company can grow?

3. Name two product portfolio management models. Explain both models.

4. Explain the BCG matrix. Explain the GE matrix. Do you think the GE matrix is better than the BCG? If yes, why? Motivate your answer.

5. What is meant with a value proposition? Explain the four elements of the value proposition and present its three value disciplines or competitive strategies. Give an example of each competitive strategy.

6. What is customer based strategies and corporate based strategies? How does this relate to the strategic ways Ohmae developed to create a competitive advantage?

Export Planning Institute _II_BPM Joris Leeman©, 2010 Export Planning How to write an international...

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