Description
This is a presentation is about the company's resources and competitive position.
Analyzing a Company’s Resources & Competitive Position
Agenda
? How well is the company’s present strategy working? ? What are the company’s SWOT? ? Are the prices & costs competitive?
? Is the company competitively weaker or stronger?
How well is the companies present strategy working?
? ? ? ? ? ? ? ? ? ?
Sales growth Profit increase Credit rating Image and reputation Proactive tactics New customers ROI trends Improvement measures Shareholders views Such other
What are the companies SWOTs?
? Strengths
? ? ? ? ? ? ?
Expertise Physical assets Human resources Intangible assets (brand) Achievements Alliances and ventures Competencies
Competencies
? Core competency ? Something an organ is good at doing. Is a proficiently performed internal activity that is central to a companies strategy and competitiveness, knowledge base residing in people, intellectual capital, not assets ? Distinctive competencies ? A Competitively valuable activity that a company performs better than rivals. It is a competitively superior resource strength
Competitive power of resource strength
? HARD TO COPY ? WAL MARTS DISTR ORGN ? STAYING POWER ? KODAK V/S DIGITAL CAMERAS ? REAL SUPERIORITY ? COKE V/S PEPSI
? RIVAL TRUMPING ? SOUTH WEST FARE, CADILLAC (LINCOLN)
Weaknesses
? Represent competitive liabilities
Inferior/unproven skills, expertise Deficiencies in assets Missing or inferior capabilities Note : an honest unbiased assessment
Opportunities & Threats
? Opportunities ? Matching with financial and resource capabilities
? Threats ? Certain factors in external environment ? Note :also to assess internal scrutiny
Are the company’s prices & costs competitive?
Analytical Tools
Value Chain Analysis
Benchmarks
Value Chain Analysis
? Value Creating Activities ? Primary Activities ? Support Activities
? Value Chain includes Profit Margin
? Create & Deliver Value ? Exposure to major elements of cost structure
Example: Mangoes in Kenya
What went wrong?...
? Declining Exports ? Unreliable supplies ? Pest Infestation ? Crop Mismanagement ? Inadequate infrastructure (Losses post-harvesting) ? Potential for increasing Local Processing ? Local Production
Major Concern…
? Development of Mango supply chain categorized
into 4 basic stages:
?
Farm Level
?
Clean planting material, inadequate technology, length of production cycle, inadequate post harvest handling facility, poor crop management practices
? ? ?
Marketing Stage Processing Stage Export Stage
Recommendations
? Structural Problems
? ? ? ?
Growth ? Forgone potential income ? Managing Labor Better quality control and management of value chain Keeping Quality Checks before Bottle necks Best market opportunities for processed products Infrastructural Development
? Hindered
CREATING VALUE CHAIN
The Value Chain
Why value chains of rival company’s often collide?
? Business/ Product Cycle - Saturation level ? Internal operations – Operational Failures ? Strategy Failures ? Economics of the activities – Economies of Scales ? Varying degrees of integration
E.g.: Aluminium can producers plant next to beer breweries and use overhead conveyers ? A company’s cost competitiveness depends not only on the costs of internally performed activities i.e. its own value chain but also on the costs in value chain of its supplies and forward channel allies e.g. GM - Outsourcing internal Inventory Processing
Fig.: Representative Value Chain for an Entire Industry
measure a Company’s Cost Competitiveness and Efficiency
? Bottlenecks in the process (Kamjore Kadi Kon?)
Inter-Dependent Events Priority Processes, Parts, events – Red and Green lable Concept ? Cost Effectiveness of Labor – Concept of Idle labor ? Cost Accounting Data Information – Accuracy and Projectionsb ? The Cost of Performing the specific Activities
Benchmarking the costs of key value chain activities
? Costs of performing company’s activity and
Technology Used– Economies of Scale (2 way Sword in case of State of ART technology used) ? Benchmarking against competitive cost and/or any industry’s better performing activity Note : in 1979 japans copier in us was $9600 each (dumping suspected) less than Xerox’s production costs Fuji Xerox study tour revealed inefficiencies in the manufacturing process
Strategic options for remedying a cost disadvantage
? Three key areas ? Company’s own activity segment ? Suppliers part of the industry’ value chain – Outsourcing inventory Processing ? Managing Interdependent Event in the process ? Exact and Accurate Cost Analysis
Translating proficient performance of value chain activities into competitive advantage
? Develop competencies and capabilities that please
buyers. Reliance Networking Hubs can only be compared with NASA
? That rivals don’t have or cant match
? ?
E.g. Rolls Royce – Customer Satisfaction Fed ex in fleet operations
Is the company competitively stronger or weaker than key rivals?
? How does it rank vis-à-vis competitors on each important
factors
? ?
?
Specific skill or talent: Professors in an MBA Institute Competitive capability: Tata low cost steel producer Something a firm must do to satisfy customers: Extended banking hours ICICI
? Does it have a net competitive advantage or disadvantage
vis-à-vis major competitors
? List of KSF and most telling measures of competitive
strength or weaknesses on 1 to 10 scale both weighted and un weighted
Industry key success factors
?
Beer/Brewing Industry
? ? ?
Utilization of brewing capacity - to keep manufacturing costs low Developing a strong network of wholesale distributors - to gain access to retail outlets Clever advertising - to induce beer drinkers to buy a particular brand Fashion design - to create buyer appeal Low-cost manufacturing efficiency – to keep selling prices competitive
?
Apparel Manufacturing Industry
? ?
Music Value Chain
Thank You!!
doc_159377726.ppt
This is a presentation is about the company's resources and competitive position.
Analyzing a Company’s Resources & Competitive Position
Agenda
? How well is the company’s present strategy working? ? What are the company’s SWOT? ? Are the prices & costs competitive?
? Is the company competitively weaker or stronger?
How well is the companies present strategy working?
? ? ? ? ? ? ? ? ? ?
Sales growth Profit increase Credit rating Image and reputation Proactive tactics New customers ROI trends Improvement measures Shareholders views Such other
What are the companies SWOTs?
? Strengths
? ? ? ? ? ? ?
Expertise Physical assets Human resources Intangible assets (brand) Achievements Alliances and ventures Competencies
Competencies
? Core competency ? Something an organ is good at doing. Is a proficiently performed internal activity that is central to a companies strategy and competitiveness, knowledge base residing in people, intellectual capital, not assets ? Distinctive competencies ? A Competitively valuable activity that a company performs better than rivals. It is a competitively superior resource strength
Competitive power of resource strength
? HARD TO COPY ? WAL MARTS DISTR ORGN ? STAYING POWER ? KODAK V/S DIGITAL CAMERAS ? REAL SUPERIORITY ? COKE V/S PEPSI
? RIVAL TRUMPING ? SOUTH WEST FARE, CADILLAC (LINCOLN)
Weaknesses
? Represent competitive liabilities
Inferior/unproven skills, expertise Deficiencies in assets Missing or inferior capabilities Note : an honest unbiased assessment
Opportunities & Threats
? Opportunities ? Matching with financial and resource capabilities
? Threats ? Certain factors in external environment ? Note :also to assess internal scrutiny
Are the company’s prices & costs competitive?
Analytical Tools
Value Chain Analysis
Benchmarks
Value Chain Analysis
? Value Creating Activities ? Primary Activities ? Support Activities
? Value Chain includes Profit Margin
? Create & Deliver Value ? Exposure to major elements of cost structure
Example: Mangoes in Kenya
What went wrong?...
? Declining Exports ? Unreliable supplies ? Pest Infestation ? Crop Mismanagement ? Inadequate infrastructure (Losses post-harvesting) ? Potential for increasing Local Processing ? Local Production
Major Concern…
? Development of Mango supply chain categorized
into 4 basic stages:
?
Farm Level
?
Clean planting material, inadequate technology, length of production cycle, inadequate post harvest handling facility, poor crop management practices
? ? ?
Marketing Stage Processing Stage Export Stage
Recommendations
? Structural Problems
? ? ? ?
Growth ? Forgone potential income ? Managing Labor Better quality control and management of value chain Keeping Quality Checks before Bottle necks Best market opportunities for processed products Infrastructural Development
? Hindered
CREATING VALUE CHAIN
The Value Chain
Why value chains of rival company’s often collide?
? Business/ Product Cycle - Saturation level ? Internal operations – Operational Failures ? Strategy Failures ? Economics of the activities – Economies of Scales ? Varying degrees of integration
E.g.: Aluminium can producers plant next to beer breweries and use overhead conveyers ? A company’s cost competitiveness depends not only on the costs of internally performed activities i.e. its own value chain but also on the costs in value chain of its supplies and forward channel allies e.g. GM - Outsourcing internal Inventory Processing
Fig.: Representative Value Chain for an Entire Industry
measure a Company’s Cost Competitiveness and Efficiency
? Bottlenecks in the process (Kamjore Kadi Kon?)
Inter-Dependent Events Priority Processes, Parts, events – Red and Green lable Concept ? Cost Effectiveness of Labor – Concept of Idle labor ? Cost Accounting Data Information – Accuracy and Projectionsb ? The Cost of Performing the specific Activities
Benchmarking the costs of key value chain activities
? Costs of performing company’s activity and
Technology Used– Economies of Scale (2 way Sword in case of State of ART technology used) ? Benchmarking against competitive cost and/or any industry’s better performing activity Note : in 1979 japans copier in us was $9600 each (dumping suspected) less than Xerox’s production costs Fuji Xerox study tour revealed inefficiencies in the manufacturing process
Strategic options for remedying a cost disadvantage
? Three key areas ? Company’s own activity segment ? Suppliers part of the industry’ value chain – Outsourcing inventory Processing ? Managing Interdependent Event in the process ? Exact and Accurate Cost Analysis
Translating proficient performance of value chain activities into competitive advantage
? Develop competencies and capabilities that please
buyers. Reliance Networking Hubs can only be compared with NASA
? That rivals don’t have or cant match
? ?
E.g. Rolls Royce – Customer Satisfaction Fed ex in fleet operations
Is the company competitively stronger or weaker than key rivals?
? How does it rank vis-à-vis competitors on each important
factors
? ?
?
Specific skill or talent: Professors in an MBA Institute Competitive capability: Tata low cost steel producer Something a firm must do to satisfy customers: Extended banking hours ICICI
? Does it have a net competitive advantage or disadvantage
vis-à-vis major competitors
? List of KSF and most telling measures of competitive
strength or weaknesses on 1 to 10 scale both weighted and un weighted
Industry key success factors
?
Beer/Brewing Industry
? ? ?
Utilization of brewing capacity - to keep manufacturing costs low Developing a strong network of wholesale distributors - to gain access to retail outlets Clever advertising - to induce beer drinkers to buy a particular brand Fashion design - to create buyer appeal Low-cost manufacturing efficiency – to keep selling prices competitive
?
Apparel Manufacturing Industry
? ?
Music Value Chain
Thank You!!
doc_159377726.ppt