Three Paths to Market Supremacy

TEAM:Bharathi Swetha M (29010)Chandramouli (29011)Harini Audisekar (29015)Jyotsna (29018)Rachel Priyanka J (29038)Sathish Aravind (29047)

Value Redefined…

In the past: Value = Quality + PriceAt present:Value = Quality + Price + Convenience +

Dependability + After Sales services + …..

Core Values

Operational Excellence Specific strategic approach to production and delivery of goods Competitive price, Minimal inconvenience Classic case – Success of Dell Some pioneers – Dell, Wal-Mart, American Airlines, FedEx

Been there, Done that ! Success of GE – General Electric Loaded Dealer ~ Loyal Dealer Direct Connect Program Virtual Inventory System

Typical Characteristics:

High integration Low cost transaction processing Lean and Efficient

Customer Intimacy

Customer intimacy describes the ability of a supplier to become accepted by the customer Customer Loyalty

Customer Intimacy (Contd..)

• Long term vs. Short term customers• Customization• Responding to Individual customer needs• Training the employees based on their

strengths• Better Service• Solutions to problems• Examples: Home Depot, Kraft

The three routes

Examples

• Kraft and Home Depot • Kraft studied the customer’s interest by

maintaining 3 databases.• Information from Individual stores• Demographic• Geo Demographic

Achieved better results

Product Leadership

• State-of-the-art products and services • Challenge themselves with:

Creativity Commercialization Be their own fiercest competitor

• They’d rather render their own product obsolete than let anyone else do it

• Continual search for new product or service possibilities

J&J’s Viskaton, Inc.

• Embracing innovative realizable ideas• Willingness to incur high manufacturing and inventory costs• Fast reactions to situations

Managing marketing strategies Challenges placed by competitors

J&J’s Vistakon, Inc. (Contd..)

• Vested interest in protecting the entrepreneurial environment created – hire, recruit and train employees• Maintain product leadership edge• Risk management

Masters of Two

COMPANY OPERATIONAL EXCELLENCE

CUSTOMER INTIMACY

PRODUCT LEADERSHIP

TOYOTA

USSA

STAPLES

Sustaining the Lead

• Successful Industry leader-Choose Value Discipline based on

Capabilities Culture

of the company as well as its competitor• Greater Challenge-to sustain that focus

Value Discipline/Customer?

• Focus on Value Discipline = Focus on selecting category of customers

• Same Customer-can contribute in all 3 categories

VALUE DISCIPLINES CUSTOMEROperational Excellence Look for cheap price and

high convenience.

Customer Intimacy More concerned with obtaining precisely what they want.

Product Leadership Who values state-of-the-art products.

What went wrong with Sears ?

•Operational Excellence•Fa

iled to restructure E2E distribution costs

•Customer Intimacy•Br

and Central : lack of clarity

•Product Leadership

•Ineffective promotion of fashion

What went right for JCPenny ?

Focus on the value discipline

• Focus on & excel in either

– Operational Excellence– Customer Intimacy– Product leadership

&Meet expected industry standards in the remaining two

SUCCESS WILL FOLLOW

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