PPT1

1

• Chapter 8 Alternative Value Propositions
• A value proposition is often an umbrella concept
  under which the supporting assets competencies
  and functional strategies and programs can be
  grouped.
• A VP is a clear statement of the tangible results
  a customer gets from using your products or
  services. The more specific, the better.
• A strong VP needs to be real, perceived as real
  by customers, feasible, relevant and sustainable.
• Alternative value propositions

2

• For Discussion
• Comments on the following VPs. Identify the
  bottom 4 weakest VPs. What criteria do you use?
  And how can you enhance a value proposition?
• A good value
• The most technologically advanced and robust
  system on the market
• Excellence on an important product or service
  attribute such as getting clothes clean
• Product line breadth
• We improve communication and morale
• We offer training classes in a wide variety of
  areas
• The best overall quality
• Innovative offering
• My product was rated the best-in-class by leading
  authorities
• A shared passion for an activity or a product
• Global connections and prestige

3

• For Discussion Value Propositions (1)
• A good value (Wal-Mart)
• The most technologically advanced and robust
  system on the market
• Excellence on an important product or service
  attribute such as getting clothes clean (Tide)
• Product line breath (Amazon)
• We improve communication and morale
• We offer training classes in a wide variety of
  areas
• The best overall quality (Lexus)
• Innovative offering (3M)
• My product was rated the best-in-class by leading
  authorities
• A shared passion for an activity or a product
  (Harley-Davidson)
• Global connections and prestige (CitiGroup)

4

• For Discussion Value Propositions (2)
• We need a strong VP to break through the clutter
  and get customers attention
• A strong VP needs to be
• Real (have substance behind it)
• Perceived as real by customers
• Feasible
• Relevant to what customers want to buy
• Sustainable (represents a point of superiority
  over the competition)

5

• For Discussion Value Propositions (3)
• Ways to enhance your weak value proposition
• Brainstorm with your colleagues
• Review your marketing material and what you say
  to customers, keep asking each other , so what?
  So what if we use this VP, that VP. By asking
  this question over and over again, youll get
  much closer to the real value you bring to
  customers.
• Talk to your customers
• - Your existing customers are your best resources
  to find out what value you bring. Tell your
  customer you need help understanding the real
  value of your offering and youd like a chance to
  learn their perspective.

6

• Chapter 7 SCA, Synergy and Strategic
  Philosophies
• What is an SCA? What is the difference between an
  SCA and a KSF An SCA is an element or
  combination of elements of the business strategy
  that provide a meaningful, continuing advantage
  over current and potential competitors. The KSF
  is about points of parity on important dimensions
  while the SCA is about points of advantage.
• What is synergy?- Two businesses operating
  together will be superior to the same two
  businesses operating independently in that more
  value is delivered to customers, lower cost, or
  reduce investment.
• For each strategic philosophy, why does it work?
  what are the conditions or assumptions? what
  types of organization is needed? what can go
  wrong?

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For Discussion Case PowerBar Identify the
strategic philosophy that fits PowerBar. Justify
your answers.
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• For Discussion Strategic Philosophies
• Some examples
• Strategic Commitment Wal-Mart
• Strategic Opportunism Nike, 3M
• Strategic Adaptability PowerBar
• Strategic Intent Canon, Komatsu, Samsung, Honda
  (requires real innovation)
• Wal-Mart focuses on costs value
• Nike is extremely sensitive to emerging segments
  (such as outdoor basketball) and the need for
  product refinements and product innovation.
• PowerBar has
• competence in identifying and evaluating trends
• A culture that supports the adaptation
• Organizational flexibility so that business
  creation and modification can occur quickly