porter value chain
TRANSCRIPT
Mbm (business strategy)
Courtesy of – Abhishek Aggarwal
Priyanka DasSai Kiran Singanamala
Sakshi Sharma
WHY NEUTROGENA The #1 dermatologists recommended skin brand Rich heritage of quality products Consistency maintained over the years in product
managements right from 1930 s Legacy carried forward after acquisition by Johnson &
Johnson in 1994 Fast expanding in emerging markets
WANTEDPORTER’S VALUE CHAIN
Primary Activities
Support Activities
Support Activities
Service
Marketing &Sales
Outbound Logistics
Operations
Inbound Logistics
Techno
logy Develop
men
t
Procurem
ent
Human resource M
anagement
Firm infrastructure
•Operates in 70 Countries
• Each country carries out its own production & marketing activities respectively
Neutrogena secures raw materials, supplies, and other consumable items and assets for primary activities.
•Recruitment – responsibility of individual firm’s management
• Primary Staff recruited, trained, motivated and supervised
• Major use of technology for the supply chain operations
• Continuous Updating of the same
Products are distributed globally and stored in warehouses
•Flow & distribution to the current J&J customers (tools used: inventory control, warehousing, order processing, delivery schedule maintenance etc)
Positioning on the basis of product differentiationUnique products to resist competitionFocus on advertising ( E.g.: recently Signs famous actress Kristen Bell)
Resources – Website , Online services , Huge product rangeCapabilities – Online customized solutions by experts, Product for each skin problem
•Drug company targeted•Advertisements in medical journals•No price promotions•No deodorant or skin softeners•Targets hotels
CAPABILITIES IMPROVEMENT• Advertisement strategies needs to be reviewed • Cause - obligation by unilever has caused problems• Stiff competition demands more innovative products• Customers wants more close interaction to sort out their daily
skin problems• Overabundance of typical products which confuses consumers
(For example of anti ageing range)• Quality Issues in few products (For e.g. Products not providing
sufficient UVA protection which claims to do that otherwise)