1 bruce bowhill university of portsmouth isbn: 978-0-470-06177-0 © 2008 john wiley & sons ltd
TRANSCRIPT
1
Bruce Bowhill
University of Portsmouth
ISBN: 978-0-470-06177-0
© 2008 John Wiley & Sons Ltd.www.wileyeurope.com/college/bowhill
Chapter 15
Internal Appraisal of the Organisation
© 2008 John Wiley & Sons Ltd.www.wileyeurope.com/college/bowhill
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• Market analysis and appraisal of products and services
• Achieving competitive advantage through:– Identifying the attributes that add value for customers– Strategic positioning of the organisation
• Identifying the sources of competitive advantage– Undertaking a resource audit– Identifying organisational competencies – value chain
analysis
• Benchmarking
© 2008 John Wiley & Sons Ltd.www.wileyeurope.com/college/bowhill
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• Market analysis and appraisal of products and services– 1) The product life cycle
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• Implications of the product life cycle– Cash flows– Profits– Strategy
• Build• Hold• Harvest
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• 2) Monitoring competitive position – product portfolio analysis
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• Strategic implications of the BCG matrix– It is likely to be desirable to have a balanced portfolio.
For example, too many ‘questions marks’ (usually early stage of the life cycle) could lead to a cash flow problem.
– Build, hold or harvest strategies.
• Problems of the BCG matrix– High or low market share?– Dangers of prescriptive use of the matrix– Limited number of factors considered– Market segment that is chosen
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• Achieving competitive advantage1) Identifying the attributes that customers value
• Product/ service attributes– Functionality– Quality– Price – Time
• Customer relationships• Image
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2) Achieving competitive advantage through strategic positioning– generic strategies (Porter)
• Cost leadership - price• Differentiation – unique dimension that can
command a premium price• Focus
- Confrontation strategy
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• Sources of competitive advantage
• 1) Resource audit – Financial performance and funds– Physical– Human resources– Intangible assets
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• 2) Competencies of the organisation
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• Cost drivers– All activities add cost. Eliminate activities that
do not add value and reduce expenditure where little value is added.
• Value drivers– Actions that lead to the provision of features
that add value such as on-time delivery, product quality or durability.
• Identify linkages between activities – Linkages between the activities of an
organisation– Supplier and customer linkages
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• Comparative analysis– Competitive benchmarking– Functional or generic benchmarking– Internal benchmarking
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• Competitive benchmarking
© 2008 John Wiley & Sons Ltd.www.wileyeurope.com/college/bowhill