Let’s re-think our SWOT Analysis…
Who are our Stakeholders?
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Sustainable Competitive Advantage
Product Differentiation
Market Segmentation
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10 Best Companies to Work For: National
Rank
Company
1
Genentech
2
3
4
5
6
7
8
9
10
Job Growth
Employees
20%
8,121
Wegmans Food Markets
7%
31,890
Valero Energy
Griffin Hospital
W.L. Gore & Associates
Container Store
Vision Service Plan
J.M. Smucker
REI
S.C. Johnson
5%
2%
6%
16%
-2%
-13%
9%
-0-
16,582
1,049
4,537
2,857
1,915
2,930
7,443
3,404
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http://biz.yahoo.com/special/bestco06.html
10 Best Companies to Work For in Oregon
LARGE COMPANIES
Edge Wireless LLC - Wireless communication services, edgewireless.com
U.S. Cellular, Medford - Wireless communication services, uscellular.com
Avista Utilities, Medford - Electricity/natural gas services, avistautilities.com
Robert Half International, Portland - Specialized employment services, rhi.com
Cintas Corporation, Portland - Uniform rentals and facility supplies, cintas.com
SMALL COMPANIES
Staff Finders Technical of Oregon, Beaverton - Employment scvs,stafffinders.com
Weston Dealerships, Gresham - Automotive sales
financialplacements/fpBioMed, Lake Oswego - Employment services, fpbiomed.com
Tec Laboratories, Albany - Pharmaceutical manufacturing, teclabsinc.com
Conkling Fiskum & McCormick, Portland – Strategy, cfm-online.com
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http://www.mediamerica.net/pdfs/100_Best_List_05.pdf
Objectives
INTRODUCE AND APPLY
STRATEGIC CONCEPTS OF…
 Sustainable Competitive
Advantage
 Product Differentiation
 Market Segmentation
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"This is the market group
we'll be targeting"
Dave Carpenter
Copyright 2002, Harvard Business Review
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Sustainable Competitive Advantage
OBJECTIVE
 Deliver Benefits at Lower Price “Single Dimension Competitor”
or…
 Deliver Superior Benefits -
Must be able to “Add Value”
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Sustainable Competitive Advantage
FORMULATION
Expand Consumer Perceptions of
Product to include Attributes that
have Enduring Value
 Acquisition Price (Amount paid to
+
=
Get Something)
Value Attributes (Amount paid to
Have Something)
TOTAL PRICE
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Distinctive Competencies
Competencies Necessary to
Create Value-Adding Attributes
 Innovativeness
 Efficiency
 Quality
 Customer Responsiveness
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TOOLS: SWOT Analysis
STRATEGIC DEVICE FOR
IDENTIFYING AND ANALYZING:
 Strengths: Internal Capabilities to
Expand Product Market Share
 Weaknesses: Vulnerabilities in Product
Mix or Line
 Opportunities: External Market or
Competitor Conditions
 Threats: External Macroeconomic or
Industry Factors
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TOOLS: SWOT Analysis
Strengths
Opportunities
Threats
Weaknesses
Strategic Implications of
Strengths and Weaknesses
versus Opportunities and
Threats
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PRODUCT
LIFE
CYCLE
Useful Strategic Planning/Analysis Tool
Modify to Include all Life Cycle Cash Flows
Uncertainty Element: How do you know
the Curve’s future direction?
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Tactical Elements of
Sustainable Competitive Advantage
Four “Ps” of Marketing Mix
 Price: Quality/Price
Relationship
 Place: Distribution Methodology
 Promotion: Customer
Communication
 Product: Features and Benefits
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Distribution Channels
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Distribution Channel Analysis
Use the Five “Cs” Analytical Tool
How did Costco revolutionize
distribution channels?
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Product Differentiation
Set of Meaningful Differences…
Designed to Distinguish a
Firm’s Product or Service…
From its Competitors
Note: “Meaningful” equates with Long-Term
Financial Value, Not Unsustainable
Short-term Windfall
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Product Differentiation
DIFFERENTIATION VARIABLES
 Form: Size, Shape or Physical
Structure
 Features: Supplement
Product’s Basic Function
 Quality: Level where Product’s
Primary Characteristics
Operate
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ASPECTS OF DIFFERENTIATION
PRODUCT MIX STRATEGY
 Distinct from Product Line Extension
 Broaden Range with Unrelated
Product Types
 Risk Diversification Strategy: Mitigate
Seasonal or Cyclical Volatility
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ASPECTS OF DIFFERENTIATION
PRODUCT LINE EXTENSION
 Tactical Implementation of
Differentiation Strategy
 Maintain Core Product but

Supplement with Enhancements
and Related Products
Has Effect of Extending Overall
Product Life Cycle
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Market Segmentation
IDENTIFY RELEVANT SEGMENT
 Mass Marketing: Mass Production,


Distribution and Promotion of Single
Product for All Buyers
Segment Marketing: Large, Identifiable
Group with Similar Buying Attitude and
Habits, Purchasing Power and
Preferences
Niche Marketing: “New” Small Market
with Unserved (not under-served)
Needs
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Market Segmentation
IDENTIFY COMMERCIALLY VIABLE
GROUP WITHIN MARKET SEGMENT
WITH SIMILAR…
Tastes and Preferences
Purchasing Power (Economics)
Geographical Location, Age, Gender
(Demographics)
Purchasing Patterns and Habits
(Sociological)




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Marketing Strategies
“However beautiful the
Strategy, you should
occasionally look at the
results.”
… Winston Churchill
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TOOLS: Perceptual Mapping
VISUAL REPRESENTATION OF
MARKET SEGMENT AND
CUSTOMER PERCEPTIONS
 Identify Meaningful Product
Attributes
 Compare on X- and Y-Axis
 Analyze Key Competitive
Characteristics
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Crunch
Perceptual Map
KitKat
Hershey’s
With Almonds
Nestlé
Crunch
Dark Chocolate?
Nut Flavor Only?
Hershey’s
Milk Chocolate
Chocolate
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Perceptual Map of Breakfast Cereals
GOOD
TASTE
Cocoa Puffs
LOW
NUTRITION
HIGH
NUTRITION
Rice
Krispies
Cheerios
Wheaties
Shredded
Wheat
BAD
TASTE
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Perceptual Mapping
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Mapping Value Perceptions
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TEAMS
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YOGI’S PERSPECTIVE
“If you don’t
know where
you’re
going…
You’ll end up
somewhere
else.”
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Characteristics of
Great Teams
Understand Mutual Accountability
Reject “The Boss holds ME
accountable”
Accept “We hold OURSELVES
accountable”
Team Accountability is all about
COMMITMENT and TRUST
Approaches Shared by
Successful Teams
Establish Sense of Urgency
Demanding Performance
Standards and High Expectations:
No Compromises
Members selected for Specific
Skills and Value of Potential
Contributions
Set Clear Rules of Behavior: No
Blaming
Approaches Used by
Successful Teams
CONDUCT EFFECTIVE MEETINGS
Agree on Meeting’s Purpose
To Receive/Provide Information or…
To Decide Something
Have Beginning, End and Order
Agenda: Topics and Presenters
Time Commitments
Purpose determines Length; Not
Availability
Approaches Shared by
Successful Teams
RULES OF THE ROAD FOR MEETINGS
Solicit Input – Encourage
Participation – No Private
Discussions
Maintain Focus – Can’t Decide
Something: Put in Parking Lot
Monitor Interactions – Assess
Participation –
Delay won’t Fix
Problem
Summary: How to Tell
the Difference
WORKING GROUP
TEAM
Strong, Focused Leadership
Shared Leadership
Individual Accountability
Mutual Accountability
Shares Organization Mission
Separate Team Mission in
support of Organization
Group Decides but “Real
Work” Delegated to Others
Team Decides and Performs
Together “Real Work”
When the Motor home has come to a
full and complete stop, Exit only
through the Front Cabin Door…
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