strategic market management david aaker

1. INTERNAL ANALYSIS Group – 4 Junaid A Siddiqui Shivani Sharma Dattsen Mishra MananBedi KunalShukla AshishGadbail Rohit Singh AkifGhaffar MohitLala

2. Topics to be covered External Analysis Vs Internal Analysis Importance of Internal Analysis

4. Importance of Internal Analysis

6. Profitability

8. Financial Performance (ctd…)

10. Brand Loyalty

11. Brand Association

12. Relative cost

13. New product Activity

16. Brand loyal consumers are the foundation of an organization

17. Brand loyalty is always developed post purchase.

18. Example of brand loyalty can be seen in US where true Apple customers have the brand's logo tattooed onto their bodies.It measures parameters such as quick service, ensuring quality products, continuous improvement, wide distribution network, etc.

20. Associations are not “reasons-to-buy” but provide acquaintance and differentiation that’s not replicable

25. UpgradeEg. Micromax Mobiles

26. Internal Analysis Performance Measurement Performance Beyond Profit New Product Activity

27. Internal Analysis Performance Measurement Performance Beyond Profit Employee Capability and Performance

28. Past and Current Strategies Strategic Problems Organizational Capabilities Financial Capabilities /Constraints Strengths / Weaknesses

29. Determinants of Strategic Options Past and Current Strategies Strategic Problems STRATEGIC CHOICES Organizational Capabilities Financial Capabilities /Constraints Strengths / Weaknesses

30. PAST AND CURRENT STRATEGIES To understand the bases of past performance, it is important to be able to make an accurate profit of past and current strategies.

31. Determinants of Strategic Options Past and Current Strategies Strategic Problems STRATEGIC CHOICES Organizational Capabilities Financial Capabilities /Constraints Strengths / Weaknesses

33. Absence of an asset ( such as good location) or competence (eg new product introduction skills).For Example – An Automobile brand that finds it has a fit and finish deficit w.r.t. competitors requires strategic moves involving product design and production

34. Determinants of Strategic Options Past and Current Strategies Strategic Problems STRATEGIC CHOICES Organizational Capabilities Financial Capabilities /Constraints Strengths / Weaknesses

36. System – E.g.. McDonald’s

37. People

40. Should a firm increases its net investment or decrease it by holding liquid assets or returning cash to debt holders?

42. ORGANIZATION STRENGTH AND WEAKNESSES Based on its assets and competencies

43. Where to compete The Customer Value Proposition Assets and Competencies Functional Strategies and programs

44. Internal Analysis From Analysis to Strategy Where to compete Some leading Examples Some important questions to be asked are:

45. Internal Analysis From Analysis to Strategy Customer Value Propositions Can involve elements such as providing:

46. Assets & Competencies Internal Analysis From Analysis to Strategy

47. Internal Analysis From Analysis to Strategy Functional Strategies & Programs Business strategy driven by a supportive set of Functional Strategies & Programs

48. Internal Analysis From Analysis to Strategy

49. Definition and need of Portfolio Analysis BCG Matrix GE Matrix Few strategic implications

50. Internal Analysis Business Portfolio Analysis Definition of Portfolio Analysis “A company's portfolio is the sum of its business, assets and products. A perfect portfolio analysis is shaped to meet and suit the company's potency and also enable it to exploit the best opportunities available to it.” Analysis of a portfolio involves deciding on the relative importance of available business and investment opportunities. The best portfolio analysis takes into account the locations of the different Strategic Business Units (SBU) present in the portfolio. Need of Business Portfolio Analysis

51. Internal Analysis Business Portfolio Analysis BCG Matrix Four classification (thus four strategies) Two dimension used: Market share Market growth rate

52. Internal Analysis Business Portfolio Analysis GE/Mc Kinsey Matrix The GE matrix however, attempts to improve upon the BCG matrix by generalizing the axes as "Industry Attractiveness" and "Business Unit Strength" whereas the BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market share as a proxy for the strength of the business unit. There are nine Quadrants which are numbered and accordingly Strategic implications are like– While the GE business screen represents an improvement over the more simple BCG growth-share matrix, it still presents a somewhat limited view by not considering interactions among the business units and by neglecting to address the core competencies leading to value creation.

54. Growth

55. Share by segment

56. Customer loyalty

57. Margins

58. Distribution

59. Technology skills

60. Planets

61. Marketing

62. FlexibilityIndustry Attractiveness Business unit Strength Evaluate Industry Attractiveness 1) Size 2) Growth 3) Customer satisfaction levels 4) Competition 5) Price level 6)Profitability 7) Technology 8) Government regulation 9) Sensitivity to economic trends

63. Internal Analysis Business Portfolio Analysis Few strategies