Upload
sabeeh-ul-hassan
View
219
Download
0
Embed Size (px)
Citation preview
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 1/20
Ian McPhee
MARKETING
MANAGEMENT
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 2/20
Predictable science?
Economic downturn What¶s really out there?
Our environment
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 3/20
What can we learn from science?
Water finds its own level Equality has to be eventually
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 4/20
Markets are never actually in equilibrium
They merely approach it as opportunities are
exploited
µCreative Destruction¶
Killer apps
Status quo v. Change
Order v. Chaos
Prescriptive v. Emergent
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 5/20
Faced with change
± Rapid; Radical & Revolutionary
Most Organisations won¶t
± Adapt; Alter & Amaze the market
Instead they
± Deny; Deteriorate & Die
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 6/20
Discuss the Red Queen theory
Identify the meaning of a µJanus¶ trend
List the eight Janus trends/paradoxes Explain how what is good is also bad
Explain the difference between
- Evolutionary change - Revolutionary change
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 7/20
Red Queen Race ± Species have to "run" (evolve) in order to stay in the same place
Red Queen Effect can be especially deleteriouswhen new rivals enter the market ± Incumbents struggle to improve efficiencies ± Upstarts and new entrants in existing markets
Capture a niche Create new ones
± Rules of the games are changed irrevocably
Strategists & Marketers must continually evolve ± To create change ± To respond to change
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 8/20
Janus was the Roman god of ± Beginnings and endings
± Gates and doors
Always represented with a double-faced head ± Each face pointed in opposite direction
Transitions from ± Primitive life to civilization
± Countryside and city ± Peace and war
± Past and future
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 9/20
Prosperity v. Poverty
Free Markets v. Protectionism
Population Growth v. Population Shortages Global Bliss v. Global Gloom
Power of MNCs v. Fragility of MNCs
Global Media Reach v. Media Fragmentation
Enhanced v. Diminished Service
Age of Brands v. Anti-Brand Era
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 10/20
Growth in wealth
± More than 7.7 million globally hold more than U.S.$1 million
± 236,000 millionaires in China, 61,000 in India
Poverty and despair
± 2001 2.7 billion people survive on less than $2 daily
± 1960 (average income) 20% of world¶s wealthiest
population was 30 times higher than poorest 20%
± 2001 It was 82 times higher!
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 11/20
Huge rise in electivesurgery
± Facelifts ± µBody¶ enhancements
± Liposuction
± Regular botox
treatments
Preventable diseases thatare three biggest killers of
children ± Measles
± Malaria
± Diarrhea
30 million children are not
immunized 6 million children under
age 5 die of hunger everyyear
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 12/20
Free markets ± WTO has 147 members representing 90% of world trade
± Average tariff has fallen from 40% to less than 4% since1950
± Over past decade freight and communication cost havedeclined sharply
Growing protectionism ± EU agricultural tariffs remain at 20% restricting growth of
poorest countries whose exports are 70% agriculture ± United States enacts ³safeguard quotas´ against Chinese
textiles
± Ongoing row regarding Boeing and Airbus subsidiesbetween United States and the European Union
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 13/20
Population growth ± World¶s population has doubled from 3 billion to 6 billion in past 40
years
± By 2050 World population expected to reach 9 billion
World¶s 50 poorest countries will triple in population
± Five countries account for approximately one-half of the world¶spopulation
± Population of five largest cities exceeded or almost matched majorityof world¶s nations (including geographically large nations such as
Australia and Canada)
Population shortages ± 27 potential future members of European Union will experience 6%
decrease in population through 2050
± Current EU members will also experience declines
± Canada¶s Alberta province despite economic boom lacks enough
workers
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 14/20
Global bliss ± Cultures and countries realizing
Greater similarities than differences More to gain by cooperation than conflict
± Global brands ± Globally integrated production processes
Multiple sources of origin on products ± Advances in logistics have lowered containerized transportationcost
± Time boundaries all but eliminated ± Internet: Cell phones ± Regulatory boundaries fall as nations seek to increase trade
Global gloom
± Many people feel Globalization is a bad thing Majority of the world¶s population is worse off Undermines the environment etc
± Anti-globalization protests accompany most major meetings of political and business leaders
± Diluting of local cultures by global brands
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 15/20
The Power of MNCs ± Of 100 largest economies 51 are corporations, 49 are nation states ± Wal-Mart revenues > most economies of eastern Europe ± MNCs¶ powers increases due to mergers and acquisitions ± Strong emphasis on R&D
± Aggressive intellectual property protection Fragility of MNCs
± Value chain exploitation can make smaller companies morecompetitive
± Vulnerable to ³brand companies´ Companies that outsource all activities except marketing of brand
More flexible, no overhead cost or investment in major infrastructure ± Susceptible to activities of so-called ³hidden champions´
Small-to-medium-sized firms with strong local presence
± Lack of adequate laws protecting intellectual property rights Patents Copyright protection
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 16/20
Worldwide media reach ± ³Buying´new from CNN, SKY, BBC, extends smaller stations reach
± Global availability
Fragmentation of media and audiences
± Advertising in video games Advertisers pay large sums for product placement
± ³U-commerce´ Commerce that is ubiquitous, universal, unique, and in unison with
recipient
M (or mobile)-Media advertisements to cell phones and other portable
devices ± Internet
³Podcasting´ anyone can be a broadcaster
YouTube permits anyone to upload video and others to download content
MySpace is a communications tool that also allows upload of video anddownload of content
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 17/20
Enhanced service ± Singapore Airlines
Pampers business class passengers
± FedEx Guaranteed delivery
Diminished service ± Demise of operated assisted calls in favor of direct dial
± ATMs in place of bank clerks
± Online statement retrieval in place of paper notification
± Customers don¶t always want delightful service²they want solutions
± Customers want Speed
Efficiency
control
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 18/20
The age of brands ± Brand equity²value of a brand name
brand recognition = brand equity
± Brand equity in not-for-profit firms Red Cross
Amnesty International
Habitat for Humanity
The era of the anti-brand
± Anti-globalization movement ± Dilution of local culture
± Exploitation of foreign workers
³Free speech is
meaningless if the
commercial
cacophony has risento the point where no
one can hear you.´
(No Logo: Naomi Klein)
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 19/20
Evolutionary Change
Standardisation of strategic approaches
Centralisedorganisational
design Exploitation of
innovations
Revolutionary Change
Differentiation of strategic approaches
Decentralisedorganisational
design
Exploration for innovation
8/8/2019 03 MM - The Environment Strikes Back
http://slidepdf.com/reader/full/03-mm-the-environment-strikes-back 20/20