Академический Документы
Профессиональный Документы
Культура Документы
A. Sales Machine
1. 2. 3. 4. 5. 6. CLUB GENERATED LEADS: 60%. SELF GENERATED LEADS: 40% RECRUIT-SELECT-HIRE PIPELINE NEW SALES PERSON ORIENTATION CORE TRAINING: Sales; Product SALES MANAGERMENT: Manager, tracking, daily training, daily meetings. 7. EFFECTIVE INCENTIVES-MOTIVATION
4
How To Create Uncontested Market Space and Make the Competition Irrelevant
Cirque du Soleil
For Adults No Animals In Theaters
Respond To Competitors
Value Innovate
11
1st Principle
Value creation without innovation is incremental. Innovation without value is tech driven or futuristic. Value Innovation aligns :
Utility Price Cost Avoids value-cost trade offs
12
Cirque
Dropped
Animals: expensive and offensive Star performers: expensive and turnover Aisle concessions: high priced add on Three Rings: confusing
Sophistication Story line Original scores Multiple productions: Four in Las Vegas now!
13
Added theater
Cirque
Drove Costs down where industry competed Drove Value Up in new areas
14
Principle #2
Compete in existing market space Beat the competition Exploit existing demand Make value-cost tradeoffs Align organization with its choice of differentiation or low cost Create uncontested market space Make competition irrelevant Create and capture new demand Break value-cost tradeoffs. Align organization to pursue differentiation AND low cost
15
Principle #3 - Factors
Assignment What are the factors you compete on:
Products and services Costs Delivery
16
17
19
RED BULL
Double the caffeine of Coke 2/3 the size of Coke can More than twice the price 1.9 billion cans sold in 2004 Spends 30% of revenue on marketing
Not super stars, but 500 fringe athletes, hip kids Sponsors extreme sport contests and cultural events 14 Red Bull airplanes for air shows
Coke spends 9%
20
Market share is 40% to 80% per country A new market: ENERGY DRINKS PS Market research showed people hated
The Name The Taste The Logo
Coke, Pepsi and Anheuser-Busch have all joined the new market
21
22
Softball ?
Make money Run a good business Focus on soft skills
Leadership Marketing Teamwork Customer service
Soft Ballers
Complain about competitors Want restrictions against competitors Complain about unfair advantages Hard ballers call all this WHINING
26
Hardball Strategies
1. Deep understanding of your profit model? 2. Deep understanding of their profit model? 3. Avoid head to head attacks
-SWA flys to secondary airports
27
5-Play the Edges -Legally -Financially -Industry Wise -Edges are Blurry -Dont break the laws
29
6-Devastate Rivals Best Profit Centers -Promotional flooding -Price cuts -Surgical focus -Based on real knowledge of costs/profits of competitors
30
7-Plagiarize with PRIDE -Steal any good, unprotected idea -Improve it -Suck away their uniqueness
31
32
-Do not act until fully ready -Hammer blows -Focused -Direct -Swift -Repeated -Relentless
33
10-Raise Competitors Costs -The super low price offer-one day -When they dont understand the true costs -Know and then cede the unprofitable clients and sectors
34
1. 2. 3. 4. 5.
Will to win? Willing to get hurt? Willing to hurt? Play the edges? Know your competitive advantage? 6. Dont complain and cry unfair.
7. Deep understanding of your profit model? 8. Deep understanding of their profit model? 9. Have a hardball team? 10. Havent played a lot of soft ball?
35
39
Gas Station
Gas and repair bays Gas and convenience store Gas ATMs in Scandinavia
50% less margin needed for nice profits
40
Zara
Retail fashion clothing loses margin in
Unsold clothes; markdowns
Zara
sells 80% = twice the normal
41
Stage 1
Strips out amenities Focus on bare bones Quality Honest Reliable Attracts penny switchers
42
Stage 2
few patents lots of copiers Successful copiers move into
new geography new market segments
No cases of an incumbent responding successfully unless they adopt the new format.
44
47
Strategies for Fighting Low Cost Rivals Three Questions Six Strategies
From Nirmalya Kumar HRB Dec 2006
48
No
Dont launch price war! Mine your data on numbers and customers. Increase differentiation.
Scale down size. Learn to live with it. Merge. Acquire similar companies.
3-ASK: If I run a low cost business, will it synergize with my high cost business?
Yes
Step up differentiation. Differentiate on many aspects. Reduce costs.
Yes
Attack with a low cost business of your own. Danger
49
52