logging in or signing up porter's competitive strategies priyajain786 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 2485 Category: Education License: All Rights Reserved Like it (2) Dislike it (0) Added: December 26, 2009 This Presentation is Public Favorites: 2 Presentation Description No description available. Comments Posting comment... By: nitishmalik03 (8 month(s) ago) this is a nice presentation Saving..... Post Reply Close Saving..... Edit Comment Close By: bobbyjain88 (17 month(s) ago) good Saving..... Post Reply Close Saving..... Edit Comment Close By: pratoo13 (18 month(s) ago) it's very interesting thx Saving..... 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Edit Comment Close Premium member Presentation Transcript PORTER’S COMPETITIVESTRATEGIES : PORTER’S COMPETITIVESTRATEGIES …company based analysis PRESENTED BY : PRIYA JAIN APPROACH : APPROACH COMPETITIVE STRATEGIES COST LEADERSHIP WALMART DIFFERENTIATION DELL COST FOCUS TATA NANO DIFFERENTIATION FOCUS EMIRATES PALACE COMPETITIVESTRATEGIES : COMPETITIVESTRATEGIES PORTER’S VIEW : PORTER’S VIEW COMPETITIVE STRATEGIES A set of activities creating a unique and valuable position A strategy to meet and rise above competition A distinct and sustainable advantage over competitors A strategy bringing both profits and market share to the firm FOUR GENERIC COMPETITIVE STRATEGIES : FOUR GENERIC COMPETITIVE STRATEGIES COMPETITIVE STRATEGIES (contd)… COST LEADERSHIP WALMART DIFFERENTIATION FOCUS EMIRATES PALACE COST FOCUS TATA NANO DIFFERENTIATION DELL STUCK IN THE MIDDLE BENETTON LOWER COST DIFFERENTIATION BROAD TARGET NARROW TARGET COMPETITIVE ADVANTAGE COMPETITIVE SCOPE COSTLEADERSHIP : COSTLEADERSHIP WALMART COMPANY PROFILE : COMPANY PROFILE CCOST LEADERSHIP – WALMART INDUSTRY : Retail FOUNDING YEAR : 1962 FOUNDER : Sam Walton NAME : Wal-mart Stores Inc. PRODUCTS : Retail stores, Sam’s wholesale clubs, discount centres TARGET MARKET : Mass market COMPETITORS : K-Mart, Target, Carrefour, Home Depot etc. HOW ? : HOW ? COST LEADERSHIP – WALMART (contd)… Offering the customers’ one location for family shopping Company also ventured into pharmacy departments, Tire & Lube Express and photo processing centres Buying in bulk from manufacturers' helps in achieving economies of scale over other small & big players Keeping store location costs minimum by placing stores on low cost land outside big & small-sized towns , avoiding high leasing and purchasing costs Selling high quality and branded products at lowest price HOW ? : HOW ? COST LEADERSHIP – WALMART (contd)… Walmart’s store managers given authority to lower prices based on local competition Eliminating local advertising expenses in favour of directly mailing a centrally produced circular Using Walmart stores and its employees in commercials are a cheaper option Unique satellite-based distribution system Low pay for full timers & heavy reliance on part-timers SWOT ANALYSIS : SWOT ANALYSIS COST LEADERSHIP – WALMART (contd)… STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Great retail brand recognition Known for convenience & one-stop shopping Extensive labour & community relations problem Huge span of control Low cost leader No flexibility of focussed competitors Many foreign location unexplored Expand beyond just retail & move in other sectors Competitors can easily imitate its inventory system methodology Both local and global players are a threat DIFFERENTIATION : DIFFERENTIATION DELL COMPANY PROFILE : COMPANY PROFILE DIFFERENTIATION - DELL INDUSTRY : Electronics ( personal computers and laptops ) FOUNDING YEAR : 1984 FOUNDER : Michael Dell NAME : Dell Computers PRODUCTS : Personal computers, laptops TARGET MARKET : Mass market COMPETITORS : HP, Lenovo, Acer, Compaq, HCL, Toshiba, Sony HOW ? : HOW ? Differentiation lies in : customers can design their own computers with flexibility speed of delivery of designed product after-sales service including technical suppory, online training courses, repair service, upgrading service & customer discussion forum bundling products with various support services DIFFERENTIATION - DELL (contd)… HOW ? : HOW ? Works on a three step approach : DIFFERENTIATION - DELL (contd)… 1. LISTEN : gather requirements of customers 2. SOLVE : deliver innovative & cost-effective solutions to meet real-life challenges 3. IMPACT : position to impact industry trends, spur innovation & deliver value to customers SWOT ANALYSIS : SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS A computer maker, not a compute manufacturer Wide loyal customer base Customer focus The company has such a huge range of products and components from many suppliers from a plethora of countries, that there is the occasional product recall that can cause Dell some embarrassment. Growing business, education and relationships in many countries Strong potential markets like Europe, Asia unsaturated Currency fluctuations hard on wallet of both customer and company Competitors also innovating, so switching costs will be high DIFFERENTIATION – DELL (contd)… COSTFOCUS : COSTFOCUS TATA NANO PRODUCT PROFILE : PRODUCT PROFILE COST FOCUS – TATA NANO INDUSTRY : Automobile Company : Tata Motors PROJECT HEAD : Ratan Tata NAME : Tata Nano TARGET MARKET : Lower middle class , middle-middle class, upper lower class COMPETITORS : Bajaj Auto-Renault, Nissan ULC , Maruti 800 HOW ? : HOW ? COST FOCUS – TATA NANO (contd)… HOW ? : HOW ? Simplicity of interior and exteriors Minimum required functions for seats, instrument panel & meters Plastic exterior parts like bumper & handle not painted Adoption of RR (rear engine, rear wheel drive) layout Using compressed air as fuel and an electric version (E-Nano) Centralization of purchasing Mass manufacturing COST FOCUS – TATA NANO (contd)… HOW ? : HOW ? Already generated enough enthusiasm from media, government, both nationally & internationally The Hindu quoted EU’s Director General for Energy & Transport : “I can say that alike other nations, entire Europe is also eagerly awaiting the commercial launch of Nano. But keeping in mind the adverse impact of carbon dioxide (CO2) on environment, it would be advisable to have Nano’s electric version. I hope Tata (Ratan) is working on it.” COST FOCUS – TATA NANO (contd)… SWOT ANALYSIS : SWOT ANALYSIS COST LEADERSHIP – WALMART (contd)… STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Unique features and low cost strategy Company brand name associated The actual showroom price quite higher than the one proposed Aim at a segment which is untouched Internationalization also on the cards A new concept so probability of risk is high Delays in production due to various political reasons No power steering and air bags, so big compromise on safety DIFFERENTIATIONFOCUS : DIFFERENTIATIONFOCUS EMIRATESPALACE COMPANY PROFILE : COMPANY PROFILE DIFFERENTIATION FOCUS – EMIRATES PALACE INDUSTRY : Hotel Industry PLACE : Abu Dhabi, UAE OPERATED BY : Kempinski Hotels NAME : Emirates Palace TARGET CUSTOMER : Super-rich , heavy wallet clients COMPETITORS : Burj-al-Arab OWNER : Abu Dhabi Government FOUNDING YEAR : 2005 HOW ? : HOW ? Bigger, costlier, classier – 302 rooms, 92 suites in 1000 hectares of green landscape setting a 13 km long private beach two helicopter pads, two swimming pools, underground parking 114 domes , one being highest in the world rising 60 meters high 6000 sq. meters of interiors covered of 22-carat gold leaf etc. 50 inch plasma screen TV in every room & WiFi all along 1002 Swarovski chandeliers, crystal studded door handles DIFFERENTIATION FOCUS – EMIRATES PALACE (contd)… A GLIMPSE ! : A GLIMPSE ! EXTERIOR VIEW A GLIMPSE ! : A GLIMPSE ! AERIAL VIEW A GLIMPSE ! : A GLIMPSE ! VIEW FROM CORAL ROOM HOW ? : HOW ? Creating value for guests that competitors find difficult to imitate Positioning the service on the basis of image in terms of super- high status commanded, high expense category, and only high profile but super rich clientele Risks of adopting differentiation focus : the affluent clientele are one-at-a-time guests, not sustainable for continuous profit Heterogeneity of demand and low market share Not sustainable for long because maintenance costs are very high DIFFERENTIATION FOCUS – EMIRATES PALACE (contd)… SWOT ANALYSIS : SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Unique features and high brand equity High profile clientele enables to maintain profit consistency Such a high price of rooms does not give even 50% occupancy in a year Slight reduction in prices could draw more clients Burj-al-Arab is a major competition Slowdown in economies all over the world might lower profits “Do not touch” service quite heavy on wallet DIFFERENTIATION FOCUS – EMIRATES PALACE (contd)… CONCLUSION : CONCLUSION COMPETITIVE APPROACH : COMPETITIVE APPROACH COST LEADERSHIP WALMART MARKET LEADER DIFFERENTIATION FOCUS EMIRATES PALACE MARKET NICHER COST FOCUS TATA NANO MARKET NICHER DIFFERENTIATION DELL MARKET CHALLENGER STUCK IN THE MIDDLE BENETTON LOWER COST DIFFERENTIATION BROAD TARGET NARROW TARGET COMPETITIVE ADVANTAGE COMPETITIVE SCOPE RESOURCES : RESOURCES www.emiratespalace.com www.walmart.com www.dell.com en.wikipedia.org THE END : THE END You do not have the permission to view this presentation. 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porter's competitive strategies priyajain786 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 2485 Category: Education License: All Rights Reserved Like it (2) Dislike it (0) Added: December 26, 2009 This Presentation is Public Favorites: 2 Presentation Description No description available. Comments Posting comment... By: nitishmalik03 (8 month(s) ago) this is a nice presentation Saving..... Post Reply Close Saving..... Edit Comment Close By: bobbyjain88 (17 month(s) ago) good Saving..... Post Reply Close Saving..... Edit Comment Close By: pratoo13 (18 month(s) ago) it's very interesting thx Saving..... Post Reply Close Saving..... Edit Comment Close By: pravinasir (28 month(s) ago) Very good presentation... how can i download this? Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript PORTER’S COMPETITIVESTRATEGIES : PORTER’S COMPETITIVESTRATEGIES …company based analysis PRESENTED BY : PRIYA JAIN APPROACH : APPROACH COMPETITIVE STRATEGIES COST LEADERSHIP WALMART DIFFERENTIATION DELL COST FOCUS TATA NANO DIFFERENTIATION FOCUS EMIRATES PALACE COMPETITIVESTRATEGIES : COMPETITIVESTRATEGIES PORTER’S VIEW : PORTER’S VIEW COMPETITIVE STRATEGIES A set of activities creating a unique and valuable position A strategy to meet and rise above competition A distinct and sustainable advantage over competitors A strategy bringing both profits and market share to the firm FOUR GENERIC COMPETITIVE STRATEGIES : FOUR GENERIC COMPETITIVE STRATEGIES COMPETITIVE STRATEGIES (contd)… COST LEADERSHIP WALMART DIFFERENTIATION FOCUS EMIRATES PALACE COST FOCUS TATA NANO DIFFERENTIATION DELL STUCK IN THE MIDDLE BENETTON LOWER COST DIFFERENTIATION BROAD TARGET NARROW TARGET COMPETITIVE ADVANTAGE COMPETITIVE SCOPE COSTLEADERSHIP : COSTLEADERSHIP WALMART COMPANY PROFILE : COMPANY PROFILE CCOST LEADERSHIP – WALMART INDUSTRY : Retail FOUNDING YEAR : 1962 FOUNDER : Sam Walton NAME : Wal-mart Stores Inc. PRODUCTS : Retail stores, Sam’s wholesale clubs, discount centres TARGET MARKET : Mass market COMPETITORS : K-Mart, Target, Carrefour, Home Depot etc. HOW ? : HOW ? COST LEADERSHIP – WALMART (contd)… Offering the customers’ one location for family shopping Company also ventured into pharmacy departments, Tire & Lube Express and photo processing centres Buying in bulk from manufacturers' helps in achieving economies of scale over other small & big players Keeping store location costs minimum by placing stores on low cost land outside big & small-sized towns , avoiding high leasing and purchasing costs Selling high quality and branded products at lowest price HOW ? : HOW ? COST LEADERSHIP – WALMART (contd)… Walmart’s store managers given authority to lower prices based on local competition Eliminating local advertising expenses in favour of directly mailing a centrally produced circular Using Walmart stores and its employees in commercials are a cheaper option Unique satellite-based distribution system Low pay for full timers & heavy reliance on part-timers SWOT ANALYSIS : SWOT ANALYSIS COST LEADERSHIP – WALMART (contd)… STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Great retail brand recognition Known for convenience & one-stop shopping Extensive labour & community relations problem Huge span of control Low cost leader No flexibility of focussed competitors Many foreign location unexplored Expand beyond just retail & move in other sectors Competitors can easily imitate its inventory system methodology Both local and global players are a threat DIFFERENTIATION : DIFFERENTIATION DELL COMPANY PROFILE : COMPANY PROFILE DIFFERENTIATION - DELL INDUSTRY : Electronics ( personal computers and laptops ) FOUNDING YEAR : 1984 FOUNDER : Michael Dell NAME : Dell Computers PRODUCTS : Personal computers, laptops TARGET MARKET : Mass market COMPETITORS : HP, Lenovo, Acer, Compaq, HCL, Toshiba, Sony HOW ? : HOW ? Differentiation lies in : customers can design their own computers with flexibility speed of delivery of designed product after-sales service including technical suppory, online training courses, repair service, upgrading service & customer discussion forum bundling products with various support services DIFFERENTIATION - DELL (contd)… HOW ? : HOW ? Works on a three step approach : DIFFERENTIATION - DELL (contd)… 1. LISTEN : gather requirements of customers 2. SOLVE : deliver innovative & cost-effective solutions to meet real-life challenges 3. IMPACT : position to impact industry trends, spur innovation & deliver value to customers SWOT ANALYSIS : SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS A computer maker, not a compute manufacturer Wide loyal customer base Customer focus The company has such a huge range of products and components from many suppliers from a plethora of countries, that there is the occasional product recall that can cause Dell some embarrassment. Growing business, education and relationships in many countries Strong potential markets like Europe, Asia unsaturated Currency fluctuations hard on wallet of both customer and company Competitors also innovating, so switching costs will be high DIFFERENTIATION – DELL (contd)… COSTFOCUS : COSTFOCUS TATA NANO PRODUCT PROFILE : PRODUCT PROFILE COST FOCUS – TATA NANO INDUSTRY : Automobile Company : Tata Motors PROJECT HEAD : Ratan Tata NAME : Tata Nano TARGET MARKET : Lower middle class , middle-middle class, upper lower class COMPETITORS : Bajaj Auto-Renault, Nissan ULC , Maruti 800 HOW ? : HOW ? COST FOCUS – TATA NANO (contd)… HOW ? : HOW ? Simplicity of interior and exteriors Minimum required functions for seats, instrument panel & meters Plastic exterior parts like bumper & handle not painted Adoption of RR (rear engine, rear wheel drive) layout Using compressed air as fuel and an electric version (E-Nano) Centralization of purchasing Mass manufacturing COST FOCUS – TATA NANO (contd)… HOW ? : HOW ? Already generated enough enthusiasm from media, government, both nationally & internationally The Hindu quoted EU’s Director General for Energy & Transport : “I can say that alike other nations, entire Europe is also eagerly awaiting the commercial launch of Nano. But keeping in mind the adverse impact of carbon dioxide (CO2) on environment, it would be advisable to have Nano’s electric version. I hope Tata (Ratan) is working on it.” COST FOCUS – TATA NANO (contd)… SWOT ANALYSIS : SWOT ANALYSIS COST LEADERSHIP – WALMART (contd)… STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Unique features and low cost strategy Company brand name associated The actual showroom price quite higher than the one proposed Aim at a segment which is untouched Internationalization also on the cards A new concept so probability of risk is high Delays in production due to various political reasons No power steering and air bags, so big compromise on safety DIFFERENTIATIONFOCUS : DIFFERENTIATIONFOCUS EMIRATESPALACE COMPANY PROFILE : COMPANY PROFILE DIFFERENTIATION FOCUS – EMIRATES PALACE INDUSTRY : Hotel Industry PLACE : Abu Dhabi, UAE OPERATED BY : Kempinski Hotels NAME : Emirates Palace TARGET CUSTOMER : Super-rich , heavy wallet clients COMPETITORS : Burj-al-Arab OWNER : Abu Dhabi Government FOUNDING YEAR : 2005 HOW ? : HOW ? Bigger, costlier, classier – 302 rooms, 92 suites in 1000 hectares of green landscape setting a 13 km long private beach two helicopter pads, two swimming pools, underground parking 114 domes , one being highest in the world rising 60 meters high 6000 sq. meters of interiors covered of 22-carat gold leaf etc. 50 inch plasma screen TV in every room & WiFi all along 1002 Swarovski chandeliers, crystal studded door handles DIFFERENTIATION FOCUS – EMIRATES PALACE (contd)… A GLIMPSE ! : A GLIMPSE ! EXTERIOR VIEW A GLIMPSE ! : A GLIMPSE ! AERIAL VIEW A GLIMPSE ! : A GLIMPSE ! VIEW FROM CORAL ROOM HOW ? : HOW ? Creating value for guests that competitors find difficult to imitate Positioning the service on the basis of image in terms of super- high status commanded, high expense category, and only high profile but super rich clientele Risks of adopting differentiation focus : the affluent clientele are one-at-a-time guests, not sustainable for continuous profit Heterogeneity of demand and low market share Not sustainable for long because maintenance costs are very high DIFFERENTIATION FOCUS – EMIRATES PALACE (contd)… SWOT ANALYSIS : SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Unique features and high brand equity High profile clientele enables to maintain profit consistency Such a high price of rooms does not give even 50% occupancy in a year Slight reduction in prices could draw more clients Burj-al-Arab is a major competition Slowdown in economies all over the world might lower profits “Do not touch” service quite heavy on wallet DIFFERENTIATION FOCUS – EMIRATES PALACE (contd)… CONCLUSION : CONCLUSION COMPETITIVE APPROACH : COMPETITIVE APPROACH COST LEADERSHIP WALMART MARKET LEADER DIFFERENTIATION FOCUS EMIRATES PALACE MARKET NICHER COST FOCUS TATA NANO MARKET NICHER DIFFERENTIATION DELL MARKET CHALLENGER STUCK IN THE MIDDLE BENETTON LOWER COST DIFFERENTIATION BROAD TARGET NARROW TARGET COMPETITIVE ADVANTAGE COMPETITIVE SCOPE RESOURCES : RESOURCES www.emiratespalace.com www.walmart.com www.dell.com en.wikipedia.org THE END : THE END