Strategic Market Manangement7th Edition.ppt
Chapter 4-Market and Submarket Analysis,PPT 4-1,Market/Submarket Analysis,Chapter Four,Copyright 2010 John Wiley&Sons,Inc.All rights reserved.Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful.Requests for further information should be addressed to the Permissions Department,John Wiley&Sons,Inc.The purchaser may make back-up copies for his/her own use only and not for distribution or resale.The Publisher assumes no responsibility for errors,omissions,or damages,caused by the use of these programs or from the use of the information contained herein.,Chapter 4-Market and Submarket Analysis,PPT 4-2,Dimensions of a Market Analysis,Emerging submarketsActual and potential market and submarket sizeMarket and submarket growthMarket and submarket profitabilityCost structureDistribution systemsTrends and developmentsKey success factors,Emerging Submarkets,Relevance!,Chapter 4-Market and Submarket Analysis,PPT 4-3,Chapter 4-Market and Submarket Analysis,PPT 4-4,SUV,Hybrid,Marketing the Wrong Product,Chapter 4-Market and Submarket Analysis,PPT 4-5,“Having great products is not enough.You need to make what customers want to buy.”-David Aaker,Chapter 4-Market and Submarket Analysis,PPT 4-6,Brand Preference,Brand Relevance,SUV,Determine Brands to Consider,Mercedes,Select Brand to Buy,LexusBMWMercedes,Select Product Category or Subcategory,Customer Decision Process,Chapter 4-Market and Submarket Analysis,PPT 4-7,Questions to Help Structure a Market Analysis,SubmarketsAre augmented products,emerging niches,trend toward systems,new applications,repositioned product classes,customer trends,or new technologies creating worthwhile submarkets?How should they be defined?Size and GrowthPotentially important submarkets?Size and growth characteristics?Submarkets declining?How fast?Driving forces behind the trends?,Figure 4.1,Chapter 4-Market and Submarket Analysis,PPT 4-8,Questions to Help Structure a Market Analysis,ProfitabilityHow intense is the competition among existing firms?Threats from potential entrants and substitute products?Bargaining power of suppliers and customers?Attractive/profitable markets or submarkets?Cost StructureMajor cost and value-added components for various types of competitors?,Figure 4.1,Chapter 4-Market and Submarket Analysis,PPT 4-9,Questions to Help Structure a Market Analysis,Distribution SystemsAlternative channels of distribution?How are they changing?Market TrendsKey Success FactorsKey success factors,assets,and competencies to compete successfully?Can assets and competencies of competitors be neutralized?,Figure 4.1,Chapter 4-Market and Submarket Analysis,PPT 4-10,Detecting Maturity and Decline,Price pressure caused by overcapacity and the lack of product differentiationBuyer sophistication and knowledgeSubstitute products or technologiesSaturationNo growth sourcesCustomer disinterest,Chapter 4-Market and Submarket Analysis,PPT 4-11,Porters Five-Factor Model ofMarket Profitability,Threat of Potential Entrants,Bargaining Power of Customers,Threat of SubstituteProducts,Bargaining Power of Suppliers,Source:Adapted from Michael E.Porter,“Industry Structure and Competitive Strategy:Keys to Profitability”Financial Analysis Journal,July-August 1980,p.33.,Figure 4.3,IndustryProfitability,Competition among Existing firms,Chapter 4-Market and Submarket Analysis,PPT 4-12,Competitive Risk Overcrowding Superior competitive entry,Market ChangesChanging KSFs New technology Disappointing growth Price instability,Firm Limitations Resource constraints Distribution unavailable,Figure 4.5,Risks of High-Growth Market,Chapter 4-Market and Submarket Analysis,PPT 4-13,Key Learnings,The emergence of submarkets can signal a relevance problem.Market analysis should assess the attractiveness of a market,as well as its structure and dynamics.A usage gap can cause the market size to be understated.Market growth can be forecast by looking at driving forces,leading indicators,and analogous industries.Market profitability will depend on five factors existing competitors,supplier power,customer power,substitute products,and potential entrants.Cost structure can be analyzed by looking at the value added at each production stage.,Chapter 4-Market and Submarket Analysis,PPT 4-14,Key Learnings,Distribution channels and trends will often affect who wins.Market trends will affect both the profitability of strategies and key success factors.Key success factors are the skills and competencies needed to compete in a market.Growth market challenges involve the threat of competitors,market changes,and firm limitations.,Chapter 4-Market and Submarket Analysis,PPT 4-15,Ancillary Slides,Chapter 4-Market and Submarket Analysis,PPT 4-16,“As the economy,led by the automobile industry,rose to a new high level in the twenties,a complex of new elements came into existence to transform the market:installment selling,the used-car trade-in,the closed body,and the annual model.(I would add improved roads if I were to take into account the environment of the automobile.)”-Alfred P.Sloan,Jr.,General Motors,Chapter 4-Market and Submarket Analysis,PPT 4-17,“Vision is the art of seeing things invisible.”-Jonathan Swift,Chapter 4-Market and Submarket Analysis,PPT 4-18,“To be prepared is half the victory.”-Miguel Cervantes,Chapter 4-Market and Submarket Analysis,PPT 4-19,“Small opportunities are often the beginning of great enterprises.”-Demosthenes,Chapter 4-Market and Submarket Analysis,PPT 4-20,“The quality of decision is like the well-timed swoop of a falcon that enables it to strike and destroy its victim.”-Sun Tzu,Chapter 4-Market and Submarket Analysis,PPT 4-21,“Most of the most important experiences that truly educate cannot be arranged ahead of time with any precision.”-Harold Taylor,
