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Bryan Cassady Guest Professor, [email protected]
KU Leuven Master Class: New Product Marketing8/11 A new look at strategy
A bakers dozen (12 +1)
Strategies to win in today’s competitive markets.
Bryan Cassady Guest Professor, [email protected]
About this courseIt is a sad fact that most new businesses, products and service fail. Some estimate the failure rate is as high as 90%. This course is about why products fail and what you can do to increase your odds of success.
This lecture is a part of series of 12 lectures. In my classes I use a lot of videos. If you’d like to see the presentations with videos, go to: http://www.fast-bridge.net/resources/new-product-marketing/
I hope in the pages that follow you will find new ideas and inspiration… If you’d like to download the whole class go to: http://www.slideshare.net/bryancassady2/2009-course-new-product-management-by-bryan-cassady
If you have ideas on ways to improve this course or would like help with your new products, I’d love to here from you…
Bryan Cassady [email protected] +32-475-860-757
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
A LETTER FROM A FRIEND (1/3)
Dear Shirley,
Remember last Saturday afternoon when I was playing in the park with my boyfriend and you came over, and he told me that when my back was turned, you kissed him?
And also, on Sunday when you came to my house and my Mom made you a tuna fish salad for lunch and you said: “Yech! That’s the worst salad I ever ate!”?
And yesterday, when my cat brushed against your leg, you kicked her and threatened to sic your “Monster” on her?
Well, for all of these reasons, I hate you, and I no longerwant to be your friend.
Lucy
Source: [Zel99], http://education.dbai.tuwien.ac.at/wie/WS05/
Bryan Cassady Guest Professor, [email protected]
Dear Shirley,
I HATE you. Here are my reasons:
1. You stole my boyfriend.
2. You insulted my mother.
3. You scared my cat.
Main statement or“Governing thought”
Reasons supporting the governing thought
A LETTER FROM A FRIEND (2/3)
Source: [Zel99], http://education.dbai.tuwien.ac.at/wie/WS05/
Bryan Cassady Guest Professor, [email protected]
*Notice the distinction between early learning and late learning. Early learning establishes the leader, late learning is their downfall
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Strategy Systems Passion ExecutionPorter 50% 20 15 15Drucker 35% 30 15 20Bennis 25% 20 30 25Peters 15% 20 35 30Welch 10% 90%
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Differentiation – Distinguish products and services in order to charge a premium price
Focus – Follow one of the other strategies in a narrow market
Cost Leadership – Offer substitutable products at the lowest price
Bryan Cassady Guest Professor, [email protected]
Michael Porter, “What is Strategy?” (1996)“[D]eveloping a strategy in a newly emerging industry or in a business undergoing revolutionary technological change is a daunting proposition.”
What makes us think we can forecast the future in a meaningful way? Getting future predictions right doesn’t happen often The process is over-simplified and static Virtually no proof that it works
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
“Chivalry is dead. The new code of conduct is an active strategy of disrupting the status quo to create an unsustainable series of competitive advantages. This is not an age of defensive castles, moats and armor. It is rather an age of cunning, speed and surprise. It may be hard for some to hang up the chain mail of ‘sustainable advantage’ after so many battles. But hypercompetition, a state in which sustainable advantages are no longer possible, is now the only level of competition.”
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Superior value and product quality are no longer a competitive
advantage
They are the cost of market entry…
your ticket to play in the game …
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Best Product Oriented
Build a state-of-the-art product which sells at a
premium.
Best Total Cost Oriented
Achieve the best and lowest cost
combination of product features and
Best Service Oriented
Solve the customer’s big picture problems and develop a close
relationship
Product(What a
company sells)
Services (How a company does business)
Bryan Cassady Guest Professor, [email protected]
Best product
BestTotal cost
BestService
Operational Excellence Customer Intimacy
Product Leadership
Bryan Cassady Guest Professor, [email protected]
Invention Product Devel
Speed to market
Product Leadership
Customer Intimacy
Operational Excellence
Solution Devel.Cust. ServiceRelationships
Operational Processes
Supply chain management Operations
Meet Basic requirements
Strategic focus
Customer ManagementInnovation
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Wal-Mart Charles Schwab Southwest Airlines FedEx Taco Bell AT & T McDonalds Dell
Examples Processes streamlined and
standardized Few decisions will be left to
front-line employees Strong management systems Reward efficiency and abhor
waste.
Characteristics:
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Microsoft Sony Apple Nike Reebok Swatch MTV Walt Disney
Examples Invention, product
development = glamour departments
A project focus high tolerance for
experimentation out-of-the-box type thinking.
Characteristics:
Bryan Cassady Guest Professor, [email protected]
More expensive, slower, closed systems… but they look and feel cool
Bryan Cassady Guest Professor, [email protected]
IBM Home Depot Nordstroms Cable & Wireless Johnson Controls Roadways Cott Corporation
Examples An obsession with educating
the customer solutions focus delegation to the employees
who meet face to face with customers.
Reward customer service Culture of going the extra mile
Characteristics:
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Is there something that makes you
specialNormal = nothing !
Bryan Cassady Guest Professor, [email protected]
It's about being the third place: home, work, and Starbucks--the place in between,"
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Are you offering, value, innovation
or service(you need to
choose ! )
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Create uncontested market space and make the competition
irrelevant
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
What does the “M” stand for ?Over a 9 year period sales grew by 35 billion. How much in the M.
Zero, Nada, Nix. Today, they don’t even make PCs
Before they sold the PC division, salespeople were told they need to sell computers from other companies
Bryan Cassady Guest Professor, [email protected]
Think about what your competition does best, and use
it against them
Bryan Cassady Guest Professor, [email protected]
“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”
Harley exec, quoted in Results-Based Leadership
Bryan Cassady Guest Professor, [email protected]
“Aiming to beat the competition has the opposite effect to the one intended. It keeps companies focused on the competition.
When asked to build competitive advantage, managers typically rate themselves against competitors, assess what they do and try to do it better.”
W. Chan Kim & René Mauborgne, “Think for Yourself—Stop copying a Rival”/FT/08.03
Bryan Cassady Guest Professor, [email protected]
“How do dominant companies lose their position? Two-thirds of the time, they pick the wrong competitor to
worry about.”- Don Listwin, CEO,Openwave Systems/WSJ3
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
Get your competition to
invest where youwant them to
Bryan Cassady Guest Professor, [email protected]
Induce your competitors not to invest in those products and services you expect to invest the most… that is the fundamental rule of strategy
Bruce Henderson Fonder of BCG
Bryan Cassady Guest Professor, [email protected]
Of course the smart car has low emissionsGetting consumer focused on emissions gets other
companies to work harder to catch up
Bryan Cassady Guest Professor, [email protected]
Make sure the strategic intent is
clear at every level
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
“I didn’t have a ‘mission statement’ at Burger King. I had a dream. Very simple. It was something like, ‘Burger King is 250,000 people, every one of whom gives a shit.’ Every one. Accounting. Systems. Not just the drive through. Everyone is ‘in the brand.’ That’s what we’re talking about, nothing less.”
— Barry Gibbons
Bryan Cassady Guest Professor, [email protected]
Create a standard supported by the market and you
can be rich
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]
The total value of a product/service that possesses a network effect is roughly proportional to the square of the number of
customers already using that product/service.
As the network grows, value grows geometrically
Bryan Cassady Guest Professor, [email protected]
“We have a ‘strategic plan.’ It’s called doing things.”— Herb Kelleher
Bryan Cassady Guest Professor, [email protected]
“You miss 100 percent of the shots you never take.”— Wayne Gretzky
Source: Hugh MacLeod/tompeters.com/NPR
1. Every morning, write a list of the things that need to be done that day.
2. Do them.
Bryan Cassady Guest Professor, [email protected]
Bryan Cassady Guest Professor, [email protected]