–Provides potential access to a wide variety of markets.–Should make a significant contribution to the perceived customer benefits of the end product.–Difficult to imitate by competitors.Ask:–How long could we lead our business if we didn’t control this competency?–What future opportunities would we lose without it?–Does it provide access to multiple markets? –Do customer benefits revolve around it? (Honda’s competence with high-revving, lightweight engines offers multiple consumer benefits.•Benchmarking: Process for comparing an organization’s products, services, and processes with those of other firms.•Scanning: Searching the external environment for opportunities and threats.
Core Competencies: Value Chain AdvantagesInbound logisticsOperationsMarketing and SalesServicesOutbound LogisticsCompany infrastructureHuman resource managementTechnology developmentProcurementIdentify, invest, develop, and leverage…………
Core Competencies: Examples
Competitive Strategies•Differentiation Strategy : Compete on the dimensions valued by customers to command a higher price.–Emphasize attributes…eg. Higher quality products, higher touch service that justify a premium price.•Cost Leadership Strategy : Achieve the lowest total overall costs to have a competitive advantage in price-sensitive markets.–Increase profits by reducing costs, while charging industry-average prices.–Increase market share through charging lower prices, while still making a reasonable profit on each sale due to reduced costs.•Focus Strategy: Concentrate competitive efforts on a particular market segment, product line, or buyer group.
Unilever•Revenues: $54B USD…58% from emerging markets•Sector: Fast Moving Consumer Goods (FMCG)•Groups: Food (27%), Refreshments (19%), Home Care (18% ),Personal Care (36%)•> 400 brands. 13 have $1B+ Revenues!
Unilever•Core Competencies: Distribution, Supply Chain, Partnerships, Marketing, Brand Management, Retail Management, Emerging Market Marketing, Local Development/Fit, M&A•Vision: “Make Sustainable Living Commonplace”•Mission: “Our distinct purpose and our operational expertiseacross our business model will help realize our vision of accelerating growth in the business, while reducing our environmental footprint and increasing our positive social impact.
Unilever•Strategy:•Improve health & well-being by 2020 by helping more than 1B people take action to improve their health & well-being.•Reduce environmental impact by 2020 by halving the footprint of the making and use of Unilever products as we grow our business.•Enhancing the livelihoods by 2020 of hundreds of thousands of people as we grow our business. •Implications:•Profitable Volume Growth•Cost Leverage & Efficiency: Simplification, LEAN•Innovation & Marketing Investment: Healthier & greener products, less packaging•Leverage people, brands, operations, commitment to sustainable living
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