ch02Ext & cust analy

8/8/2019 ch02Ext & cust analy

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Strategic Analysis


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Ex ternal and Customer Analysis


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Th e Role of Ex ternal Analysis

Ex ternal

Analysis

Ex ternal

Analysis

Strategic DecisionsWh ere to compete

How to compete

Strategic DecisionsWh ere to compete

How to compete

AnalysisInformation-need areas

Scenario analysis

AnalysisInformation-need areas

Scenario analysis

IdentificationT rends/future events

Th reats/opportunities

Strategic uncertainties

IdentificationT rends/future events

Th reats/opportunities

Strategic uncertainties

Figure 3.1


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Strategic Uncertainties

Strategic UncertaintiesWill a major firm enter?Will a tofu-based dessertproduct be accepted?Will a technology bereplaced?Will the dollar strengthenagainst an off-shorecurrency?Will computer-basedoperations be feasible withcurrent technology?How sensitive is the marketto price?

Strategic DecisionsInvestment in a product marketInvestment in a tofu-based product

Investment in a technology

Commitment to off-shoremanufacturing

Investment in a new system

A strategy of maintaining priceparity


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Strategic Uncertainties

Wh at will be t h efuture demand?

Wh at will be t h efuture demand?

Performance improvements?

Competitive tec h nologicaldevelopments?

Financial capacity of h ealt h careindustry?

Performance improvements?

Competitive tec h nologicaldevelopments?

Financial capacity of h ealt h careindustry?


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Customer Analysis

Segmentation

Identification of customers groups that respond

differently from other groups to competitive offerings.Thus, a successful segmentation strategy requires theconceptualization, development, and evaluation of acompetitive offering.

Who are the biggest customers? The most profitable?The most attractive potential customers?

Figure 2.2


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Ex amples of Approac h es toDefining Segments

Customer C h aracteristicsGeographic

Type of organizationSize of firmLifestyleSex

AgeOccupation

Figure 2.3


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Ex amples of Approac h es toDefining Segments

Product-Related Approac h esUser type

UsageBenefits soughtPrice sensitivityCompetitor

ApplicationBrand loyalty

Figure 2.3


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Segmentation

How should segments be defined?

Benefit Segmentation

Price Sensitivity

Loyalty

Applications Multiple Segments versus Focus Strategy


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Th e Loyalty Matri x: Priorities

LowLoyalty

LowLoyalty

ModerateLoyalty

ModerateLoyalty

LoyalLoyal

Customer Customer

Non-customer Non-customer

Medium

Low

toMedium

Hig h

Hig h est

Zero

Hig h

Figure 3.4

A 5% increase in loyalty can nearly double the lifetime profits generated bycustomers in various industries like banking ,insurance etc.


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Customer Analysis

Customer Motivations

What elements of the product/service do customers value most?

What are the customers objectives? What are they really buying?

How do segments differ in their motivation priorities?

What changes are occurring in customer motivation? In customer priorities?

Figure 3.2


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Customer Motivation Analysis

IdentifyMotivations

Group andStructure

Motivations Assess

MotivationImportance

Assign StrategicRoles to Motivations

Figure 2.6


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DETERMING MOTIVATIONS

Customer motivation gridSegment Motivation

Business Reliable service,convenient schdules,easy-to-useairports,frequent-flier program,&comfortable service

Vacationers Price,feasible schedules


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BUYER HOT BUTTONS

Hot buttons are motivations which are currentand whose impact on markets are significantand growing. These are significant changes inbuying decisions and usage patterns. E.g.inconsumer retail food products hot buttonsinclude:Freshness and NaturalnessHealthy eating like low on fat

Ethnic eating like Asian or Caribbean cuisinesGourmet eating like ready to eatLow-carb foods low in carbohydrates variety.


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Th e Customer as Active Partner

Encourage Active DialogueMobilize Customer Communities

Manage Customer DiversityCo-creating Personalized Experiences


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Customer Analysis

Unmet Needs

Why are some customers dissatisfied? Why are some changingbrands or suppliers?

What are the severity and incidence of consumer problems?

What are the unmet needs that customers can identify? Are theresome of which consumers are unaware?

Do these unmet needs represent leverage points for competitors?

Figure 2.2


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K ey Learnings

External analysis should influence strategy by identifying opportunities,threats, trends, and strategic uncertainties. The ultimate goal is to improvestrategic choices decisions as to where and how to compete.

Segmentation (identifying customer groups that can support differentcompetitive strategies) can be based on a variety of customer characteristics, such as benefits sought, customer loyalty, and applications.

Customer motivation analysis can provide insights into what assets andcompetencies are needed to compete, as well as indicate possible SCAs.

Unmet needs that represent opportunities (or threats) can be identified byprojecting technologies, by accessing lead users, and by systematiccreative thinking.


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If you dont know w h ere you aregoing, you mig h t end up

somew h ere else.

- Casey Stengel


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THANK YOU

Documents

ch02Ext & cust analy