PPT 1-1

1

• Chapter 1 Strategic Market Management
• For Discussion
• Examine the following firms to gain an
  understanding of the business strategy.
• What is the business strategy?
• What product markets does the firm serve?
• What value propositions does it use?
• How are the value propositions delivered?
• What are the firms assets and competences?
• What strategic options has it pursued?

2

• Nokia (wireless cell phones)
• Product market Continue to enter segments of the
  mobility industry
• Value be the technology leader when it comes to
  mobile communications, both voice and multimedia
• Assets and competencies They have financial
  resources and technology to exploit their
  business opportunity
• Strategic option Use their extensive RD to
  support their customer value proposition Plans
  to capitalize on their leadership position by
  continuing to enter segments of the mobility
  industry that they believe will experience rapid
  growth faster than the industry as a whole

3
Dell Computer Dell serves the worldwide market
for customers to build their information-technolog
y and Internet infrastructures. Their value
proposition is based around being standards-based
(there is no proprietary software like Sun and
Apple) which leads to lower prices and operating
costs for customers and the advantages of the
direct model. The direct model provides intense
customer intimacy, customized systems, very
competitive prices, and reliable and speedy
delivery. Their assets include a customer base,
brand awareness, and operational ability to run
the direct model.
4
Pampers Pampers offers more than a product to
just keep the baby dry. Their web site contains a
vast selection of information that is helpful to
the new parent. They offer advice to mothers to
overcome their fears about raising baby. The
product market they serve is the baby sanitary
market. Their website clearly is aimed at the
parents yet it has a very child-like feel and
they segment and address their markets for
prenatal, newborn, infant, cruiser, toddler,
explorer and preschooler. Their assets include a
powerful RD capability plus the ability to reach
out to other firms for innovation.