asks "which product markets
should we be in within our
Allocation across functional
departments within BU
BU's competencies vs
competitors BU competencies
Constrained by corporate goals
Sales growth, new product /
market, Profit, ROI, cashflow of
BU
All about effectiveness &
efficiency & adaptability
Shared resources or functional
competencies across product
market in an industry
Product policies
Price policies
Place (Distribution) policies
Promotion policies
ATTACHED SUMMARY
Market characteristics
Technology
Competition
Business related strenghts
Resource deployment
Id of competitors
Business level Strategy
Goals
Synergy
4. Marketing decisions
3. Environmental factors
business or industry?
Scope Concentric diversification
Homogeneous (simlar) set of Technical compatibility
markets Criteria that managers use to
cluster product markets into
SBU's: Similarity of customer needs
Unique set of product markets Similarity in personal
characteristics of customers
Control over factors of
performance e.g R&D
Strategic Business Unit
(SBU) characteristics:
Responsible for own profitability
operates within broad product
market
Responds rapidly to early signals
Prospector Values being "First mover"
Competes by stimulating &
meeting new market opp's
Maintain secure position
Module 3 Limited range of products
Lower prices, higher quality /
Defender
Business Strategies better service
and their Mills & Snow business Not at forefront of technological
Marketing Implications strategies (based on product developments
Business Level market development) classify
Competitive Strategies SBU"s into 4 types:
Intermediate Type
Follows selected set of promising
new developments
Second or third entrant into
Analyser
product markets
Slower than Prospector / not
slower than defender
Overall cost leadership Lacks competitive strategy
Not wiling to assume risks of new
Michael Porter's 3 strategies / products
Differentiation competitive positions:
Reactor
Not agressive in marketing
Responds only when forced by
Focus environmental pressures