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45 Cards in this Set
- Front
- Back
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It is natural to look for growth energizing the current business or by leveraging that business into new products or markets using the approaches |
The New Business |
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Reasons of having programs in place (5) |
To improve margin Beat competitors Enhance the customer experience Upgrade the products Leveraging their considerable assets and competencies |
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To bypass establishment business arenas with their fixed boundaries and create a new business in which by definition there will be no direct competitors, at least initially |
Strategic Routh |
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Space that contains all business arenas not in existence, an unknown market space |
Blue Oceans |
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Are established markets when boundaries and operating parameters are established and accepted |
Red Ocean |
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Barriers to long-term success (4) |
Competitors respond faster and more vigorously than ever Incremental innovations are difficult to hide Markets are so dynamic that it is easy to get behind Over capacity |
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Factors on a first-mover advantage (3) |
Competitors will often be inhibited from responding in a timely matter Competitors often are simply not able to respond The innovators can create customer loyalty based on the exposure and experience with its product or service |
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Traits of successful early market leaders (5) |
Envisioning the mass market Managerial persistence Financial commitment Relentless innovation Asset leverage |
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In managing perceptions of a category, there are some guidelines. Incidentally, these guidelines apply whenever the category is new to the market, even if it is established elsewhere |
Managing Category Perception |
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_ _'s do's and dont's of innovation |
Peter Drucker |
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Do (5) |
Analyze the opportunities Go out and look, ask, and listen Keep it simple, keet it focused Start small- try to do one specific thing Aim at market leadership |
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Don't (3) |
Try to be clever Diversify, splinter: or do too many things at once Try to innovate for the future |
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The first step to innovation is to get ideas on the table and refine the best on to obtain potential business concept |
Creating New Business Arenas |
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Factors in creating new business ideas or concept (3) |
Creating a dramatically lower price point Analyze Alternative industries From components to system |
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Many blue-ocean businesses occur when an offering appears that simpler and cheaper than that of the established firms |
Creating a Dramatically Lower Price Point |
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Clayton Christensen Theory (2) |
Low-end disruptive innovation New-market disruptive innovation |
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_ and _ suggest that one source of potential blue-ocean business concepts is the analysis of alternative industries or strategic groups within the same industry |
Kim, Mauborgne, Analyze Alternative Industries |
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A classic way to change the market is to move from components to systems |
From Components to System |
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Customer Insights (2) |
Ethnographic research Unmet needs |
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Customers are not the only source of unmet needs and potential response offerings. Experts in the field can be used, particularly experts outside the firm |
Collaborative Processes |
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From Ideas to Market; Fatal Biases Inhibiting New Business Creation 5 Related "Curses" |
Short-term financial pressure curse The curse of success Incumbent curse Commitment curse Size curse |
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Pressure to create short-term growth and margins |
Short-Term Financial Pressure Curse |
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If business is doing well, resources should be available to take risks and create new business areas |
Curse of Success |
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When transformational innovation is aimed at marginal customer or noncustomer, there is a tendency to ignore the threat to the basic business |
Incumbent Curse |
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Successful incumbent firms often have a tunnel focus on their strategic vision |
Commitment Curse |
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If firm has been successful and grown to a meaningful size, it will look to business concepts that can make a difference to shareholders |
Size Curse |
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Create a separate organization either by acquiring the industry innovator and retaining its autonomy or by creating a stand-alone entity within the corporate framework |
Making New Business Viable in Established Organizations |
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There are many ways to generate growth options that leverage the core business (4) |
Which assets and competencies can be leveraged. What brand extensions are possible. Can the scope of the offering be expanded. Do viable new markets exist. |
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A firm will often either possess or lack strong marketing skills for a particular market. Thus, a frequent motive for expanding into new product market is to export or import marketing skills. |
Marketing Skills |
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A firm with strong distribution capability may add product or services that could exploit the capability |
Capacity in Sales or Distribution |
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Manufacturing or processing ability can be the basis for entry into a new business area |
Manufacturing Skills |
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Expertise in a certain technology can lead to a new business based on that technology |
R&D Skills |
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Products-market expansion can sometimes provide economist of scale |
Achieving Economies of Scale |
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Is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category |
Brand Extension |
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The new product is called _ |
Spin-off |
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The net worth and long-term sustainability just from the renowned name |
Leverage Brand Equity |
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The evaluation of each extension alternative is based on three question (3) |
Does the brand fit the new product context. Does the brand add value to the offering in the new product class. Will the extension enhance the brand name and image. |
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_ _ and _ _ become options when two unfortunate realities exist |
Sub brands, endorsed brands |
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An analysis of the total set of task surrounding the customer use experience is a good way to begin determining whether there is viable growth option in expanding the view of offering |
Expanding the Scope of the Offering |
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This task set could including (8) |
Buying, paying, transporting, storing, preparing for use, using, restoring, disposal |
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It can be determined by walking through exactly what the customer needs to do in order to use the product or service |
Expanding the Scope of the Offering |
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A logical avenue of growth is to move existing products into new markets by duplicating the business operation, perhaps with minor adaptive changes |
New Markets |
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_ _ may involve changing from a regional operation to a national operation, moving into another region, or expanding to another country |
Geohraphic Expansion/Expanding Geographically |
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If the target segments are well defined, there is always a host other segments to consider that would provide growth directions |
Expanding into New Market Segments |
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Expanding into New Market Segments (3) |
Distribution channel Age Home vs. office |
