PPT1

1

• Chapter 10-13 Growth Strategies
• There are 4 ways to grow a business
• Energizing the current business existing
  product markets with existing assets
  competencies
• Leveraging the current business
• - taking the existing products into new market
• - finding new products/services for the existing
  customer base
• - leveraging assets or competencies
• Creating a new business
• - finding a white space in the market
• - creating transformational innovation
• Going global
• - leveraging the business into new countries
• - creating new or improved assets competencies
  that will lead to SCA in a global marketplace

2

• Chapter 10 Energizing the business
• Increasing Market Share
• Three ways to energize the brand
• Increase product usage among existing customers
• - frequency of use
• - the quantity used
• Create differentiation through branded
  differentiators
• - branded feature (meaningful impactful)
  Westin Heavenly Bed
• - branded technology Toyota VVT-I
• - branded program Harley-Davidson ride
  planner, photo center
• - co-branded differentiator WestinWORKOUT
  powered by Reebok, Ford Explorer Eddie Bauer
  Edition
• Create energy through branded energizers
• - branded program (Avon Breast Cancer Crusade)
• - branded sponsorships (Adidas Streetball
  Challenge)
• - endorsers (Tiger Woods vs. Buick)
• Difference between a branded differentiator and a
  branded energizer?

3

• Chapter 11 Leveraging the business
• Which Assets Competencies can be leveraged?
• Brand Extensions
• Expanding the Scope of the Offering (Product
  Expansion)
• New Markets (Market Expansion)
• Evaluating Business Leveraging Options
• The Mirage of Synergy

4

• Chapter 12 Creating New Businesses- where is the
  white space?
• The new business
• - What is the definition of a truly new
  business?
• - Difference between blue ocean businesses red
  ocean businesses
• - Barriers to long-term success in existing
  product markets
• The innovators advantage
• - What is an innovators advantage
• - Successful early market leaders share some
  commonality
• Guides in managing category perception focus on
  what product category or subcategory to buy
• Routes to a new business identify some examples
  of new businesses that were based on
  transformational innovation
• From Ideas to Market Making new business will
  require people, system, culture structure that
  must adapt quickly to an emerging market area
  very different from the core

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Chapter 12 Creating New Businesses- Some examples
of new businesses that were based on
transformational innovations Starbucks Starbucks
was different in that - they created an inviting
ambiance - the specialty coffee was the reason to
go into Starbucks, and customers could choose
from over 100s of different variations on
coffee - The price was also different from
regular mom-and-pop coffee shops - Starbucks was
limited in what food you could buy and you
certainly could not order fresh cooked foods,
i.e., bacon eggs, and hash browns with
toast What was similar was that like a regular
coffee shop people could come in a sit down and
enjoy a cup of coffee and it was typically a
gathering place for locals. There wasnt really
an innovator advantage because, while smaller,
Peets had limited exposure on the West Coast and
had a similar offering yet not the financial
ability to expand like Starbucks. Starbucks
originated from an established business. Howard
Schultz bought an existing business and expanded
it. Howard Schultz came up with the idea when he
was traveling in Italy and he thought it would be
a good idea to transplant the coffee experience
from Europe.
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TiVo http//www.youtube.com/watch?vJ2SV2dHQxsY
http//www.youtube.com/watch?v9SKfT9FFO18 TiVo
was different from previous ways to record
video. - Typically VHS (Video Home System) had a
limit from 2 to 6 hours that could be recorded on
a single tape without the customer having to
manually change the tape - With TiVo the customer
could set the machine to record an episode of a
continuing television show and then tell TiVo to
record all new episodes of the same series. In
addition, TiVo electronically monitors the cable
system and updates the customer on any changes in
the channel line up. Unlike VHS machines, TiVo
also allows you to record one show and playback a
different show simultaneously. The fast forward
on TiVo allows to the customer to bypass
commercials and it automatically monitors the
space available on the hard drive. What was
similar was the ability to record from a
television cable service and pre-program
recording of a show (with very limited
variety) The advantage was short-lived because
other television providers offered similar
services with their own DVR boxes Comcast,
Direct TV, etc. However, their patent assets may
allow them to survive or even win because without
access to their patents, competitors have
inferior performance This was a new offering,
transformational technology created by TiVo
corporation.
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WebVan WebVan invented a business concept that
has transformed grocery shopping for many. A
customer could order by phone or on the internet
and have the grocery store deliver the groceries
at a specific time frame. WebVan was the first
to do this on a big scale. They only lasted a
year or two because the financial model was weak.
8

• Lexus
• Lexus changed the way the customer viewed the
  maintenance of the car.
• Unlike other brands, the Lexus dealer would come
  to your place of work or home, drop off a loaner
  car and take the customers car to the shop do
  the maintenance and then return the car to the
  customer and pick up the loaner. They removed the
  dreaded car service trip for the customer.
• What was similar was the car fixed in the shop
  but the customer service involved was
  revolutionary for the car business.
• For Discussion
• Is the customer service provided by Lexus an
  innovators advantage?

9
Lexus For Discussion Is the customer service
provided by Lexus an innovators advantage? The
advantage was not a real innovators advantage in
that the service component of the purchase of the
car was too minor a point in the overall purchase
decision. To date, Lexus is the only car
manufacturer that provides this service.
10

• Chapter 12 Global Strategies
• What is the difference between a global strategy
  a multinational strategy?
• - Multinational Separate strategies developed
  implemented autonomously
• - Global A worldwide perspective, aim to create
  synergies, economies of scale, strategy
  flexibility opportunities to leverage insights,
  programs, product economies
• Eight motivations for global strategies
• Discussion Question
• Four Challenges to effective global brand
  management
• A communication system A planning system A
  management structure to foster synergy and a
  system to encourage excellence in brand building
• Strategic Alliances
• Considered when there are uncertainties of
  operating in other countries

11

• Chapter 12 Global Strategies
• Eight motivations for global strategies
• For Discussion
• For what products does globalization not make
  sense because the strategy needs to be local?
• What products have points of differentiation that
  span countries?

12

• Chapter 12 Global Strategies
• Eight motivations for global strategies
• For what products does globalization not make
  sense because the strategy needs to be local?
• Many food products fall into this category. In
  general, food products are more sensitive to
  culture, local needs and habits.
• What products have points of differentiation that
  span countries?
• Products that have purely functional benefits
  that are visible are more likely to be global
  (e.g., Pampers dry, happy baby)
• High-end premium brand (e.g., Mercedes)
• Country position (e.g., Coke, Levis, KFC,
  Harley, country of origin is a product signal of
  quality)

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• Chapter 12 Global Strategies
• Effective global brand management
• Developing a cross-country communication system
  to facilitate the sharing of insights, methods,
  experiences and best practice (Intranet)
• Creating a global brand planning system (Planning
  template)
• Forming an organizational structure to foster
  cross-country synergy
• Uninformed dictator model CEO make arbitrary
  decisions without research or analysis
• Anarchy Extremely decentralized structure with
  little guidance or communication
• Service provider model Central group develops a
  staff and knowledge base around topics such as
  MR, segmentation, sponsorship and ads
• Facilitator model help the business units to
  develop sound strategies
• Consultative model Provide insights and
  suggestions
• Finding ways to achieve brilliance in
  brand-building
• Consider what paths to follow
• Get the best and most motivated people to work on
  the brand
• Develop multiple options
• Measure the results

14

• Chapter 12 Global Strategies
• Strategic Alliances deal with uncertainties of
  operating in other countries
• Definition A long-term collaboration leveraging
  the strengths of two or more organizations to
  achieve strategic goals
• Motivations for a strategic alliance
• - A desire to achieve benefits of a global
  strategy
• - A need to compensate for the absence of or
  weakness in a needed asset or competency
• Success keys Each partner contributes assets
  competencies over time obtains strategic
  advantages