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A presentation I did for Portland Chapter of PDMA in July 2009
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The Importance of Being
CompetitiveBy: Roger HicksJuly 2009
Prepared for Portland Chapter of PDMA
Roger Hicks, July 2009 The Importance of Being Competitive 2
Objectives
Competitive Analysis and the Product Life Cycle
Questions to PonderWords of Caution
Roger Hicks, July 2009 The Importance of Being Competitive 3
Competitive Analysis and The Product Lifecycle
Situation Assessm
ent
Product Developm
ent
Product Introduct
ion
Ongoing Operation
s
Company Objectives
Market Characteristic
s
Roger Hicks, July 2009 The Importance of Being Competitive
Gathering Information for the Assessment
PublicCompany provided materialsMedia reportsRegulatory filingsCustomer Interviews
PrivateSales channel feedbackPartners and value chain playersIndustry analysis reportsFirst hand testing and tear-downs
4
MORE COMMON
LESS COMMON
MORE COMMON
LESS COMMON
Roger Hicks, July 2009 The Importance of Being Competitive
Summarizing the Situation
5
Competitor A
Competitor B
Competitor C
Your Company
Brand Position
Target Customers
Marketing Initiatives
Product Strength
Channel Strength
Supplier Strengths
Financial Situation
Roger Hicks, July 2009 The Importance of Being Competitive 6
Situation Assessment Mistakes
Not appreciating the strengths of existing competitive positions
Reliance on intuition and qualitative information
Poor dissemination of market and competitor intelligence
Roger Hicks, July 2009 The Importance of Being Competitive
How Fair Do You Need to Be?
Is it OK to cheat?Where do you draw the line on ethics of
using information about competitors
7
Roger Hicks, July 2009 The Importance of Being Competitive 8
Developing the Solution
Factor 1 Factor 4 Factor 5 … Factor nFactor 2 Factor 3
Low
High
Valu
e
Competitor A
Competitor B
Competitor C
Each competitor has a distinctive customer value curve based on its’ choice of the key strategic factors to focus on to
achieve successNote: based on principles from “Blue Ocean Strategy”
Roger Hicks, July 2009 The Importance of Being Competitive 9
Competing on Total Value
Included Features and Performance
Integration into a total
solution
Encouragement of Loyalty
and Good Will
Company Value
Experience Value
Basic Value
Less might be more
How the pieces go together adds value
that’s hard to measure directly
Benefits of a reinforcing system of developing and selling
product
What is the extra value of a superior understanding of all the
competitive factors?Potential Value
Them US
Roger Hicks, July 2009 The Importance of Being Competitive 10
Product Development Mistakes
Thinking the competition did their homework and matched market needs with product features.
Discounting the importance of a new approach from an unimportant competitor. The innovators dilemma
Thinking competitors will have a poor response to your product and marketing efforts.
Roger Hicks, July 2009 The Importance of Being Competitive
How Many Features Do You Need?
Is Less Really More?How can it be OK to include features and
capability the customers did not ask for?
11
Roger Hicks, July 2009 The Importance of Being Competitive
Product Introduction Battles
How To Define SuccessProduct comparisonsSuccess storiesAmount of pre-emption and retaliationChannel enthusiasmMarket share growthMinimal damage control from leaksPositive sales feedback from the front linesForecast accuracyLeadership positions
12
Roger Hicks, July 2009 The Importance of Being Competitive 13
Product Introduction Mistakes
Thinking the competition is not ready to defend their market position.
Trusting the secrecy agreements.
Not eating your own dog food.
Roger Hicks, July 2009 The Importance of Being Competitive
When Is the Product Ready?
Is It Smart to Launch an Unfinished Product?What good can come from introducing a
product that falls short of objectives?
14
Roger Hicks, July 2009 The Importance of Being Competitive
Ongoing Operations
Win / Loss AnalysisWhere is the sweet spotWhere is the weak linkAre desirable market positions being
defended Measuring Marketing Programs
Level and type of pre-sales activityCustomer survey trendsFinancial impacts
15
Roger Hicks, July 2009 The Importance of Being Competitive 16
Ongoing Operations Mistakes
Reacting to all the competitor counter-attacks
Spending resources with no clear payback or strengthening of competitive positions
Waiting
Roger Hicks, July 2009 The Importance of Being Competitive
What is the best response to competitive attacks?
Is it good to engage with competitors or be a leader and direct your attention to customers?
17
Roger Hicks, July 2009 The Importance of Being Competitive
Final Thoughts
Do Your Homework Expect the Unexpected Race to Be Second Be Skeptical Keep Them Guessing
18
Roger Hicks, July 2009 The Importance of Being Competitive 19
Thank You !