ASME EDC Conference. Go, Grow, Globalise Building Capabilities. Growth Strategies
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1 ASME EDC Conference Go, Grow, Globalise Building Capabilities Growth Strategies of Competitive SMEs Holistic; Optimistic, Outstanding; Integrity Hooi Den Huan Phd Director Nanyang Technopreneurship Center Nanyang Technological University
2 Achieving Success is good business sense; Accomplishing Sustainable Success is true entrepreneurship Holistic; Optimistic, Outstanding; Integrity Hooi Den Huan Director Nanyang Technopreneurship Center February 2011
3 The 4 Phases of Growth Strategies Where are we? Where do we want to go? Starting Point -Mission, Vision, -Objectives What is the environment? Environmental Analysis How to get there? How is our progress? Implementation Feedback Strategy & Control Formulation
4 Strategic Planning - Basic Framework for Analysis Company's Environmental Analysis Mission TOWS Objectives Portfolio CEO's Vision analysis Where are we going? Where do we want to go? FORMULATE Corporate Grand Strategies Competitive Generic Strategies Differentiation Low Cost Focus Functional/Product Strategies Marketing Financial Human Resource Production R & D Value Chain How do we get there? Growth Turnaround Diversify Divest/Creative Destruction IMPLEMENT Are we doing all right? Structure Culture Performance Evaluation Control Feedback ios Scenar
5 Increase market volume More usage New users New uses Ansoff's Product/Market t Expansion Grid Existing Market Existing Product Market Penetration ti New Product Product Development New Market Market Development Diversification
6 Major Decisions in International Marketing Looking at the global marketing environment Deciding whether to go international Deciding which markets to enter Deciding how to enter the market Deciding on the global marketing programme Deciding on the global marketing organization Source: Kotler and Armstrong, Principles of Marketing, Prentice Hall
7 Some Reasons for globalisation Domestic market is not big enough Reduce dependency on any one market Too strong competition ii at home (market maturity) Market opportunities in Foreign markets Tapping on resources overseas Cost reduction. Brand Building
8 MARKET-ing OUTLOOK ARCHITECTURE SCORECARD CONTEXT Mind Share Market Share Segmentation Targeting Selling Marketing Mix COMPETITION CUSTOMER M F i t t i n g Mapping Strategy n g S t r a S t r a t e g y y C C r e a t i o n o n i c T a c t Ca ptu re T a ct ic ic Brand Service COMPANY V a l u e e r Value Indicator E n h a n c e Heart Share Source: Philip Kotler, Hermawan Kartajaya, Hooi Den Huan and Sandra Liu, Rethinking Marketing, Prentice Hall, 2007
9 The Business landscape (Marketing environment) CHANGE (Value Migrator) COMPETITOR Value Supplier CUSTOMER Value Demander COMPANY Value Decider
10 The STV-Triangle: Nine Core Elements of Marketing (mind-share) STRATEGY (market-share) TACTIC Explore Positioning 'BEING' STRATEGY Differentia tion 'CORE' TACTIC Engage Process VALUE 'ENABLER' Execute VALUE (heart-share)
11 The STV-Triangle: Strategy
12 The STV-Triangle: Tactic
13 The STV-Triangle: Value
14 Positioning-Differentiation-Brand Triangle How our target market perceives us Distinctive bundle of benefits that yield competitive advantage POSITIONING O Being strategy DIFFERENTIATION Core tactic BRAND Value indicator Value indicator Source: Philip Kotler, Hermawan Kartajaya, Hooi Den Huan and Sandra Liu, Rethinking Marketing, Prentice Hall
15 Positioning-Differentiation-Brand Triangle POSITIONING The world s safest car Brand Integrity DIFFERENTIATION Safety Features
16 Example: BreadTalk s PDB Triangle POSITIONING The Experiential Boutique Bakery Brand Integrity Brand Integrity DIFFERENTIATION Content: Freshly baked breads Context: See-through kitchens; Free flowing fresh bread Infrastructure: Open concept baking process BRAND
17 The STV-Triangle: Nine Core Elements of Marketing (mind-share) STRATEGY (market-share) TACTIC Explore Positioning 'BEING' STRATEGY Differentia tion 'CORE' TACTIC Engage Process VALUE 'ENABLER' Execute VALUE (heart-share)
18 SEGMENTATION Based on customer behavior TARGETING Modern bakery consumer POSITIONING Experiential Boutique Bakery Brand Integrity SELLING Transactional Selling MARKETING MIX Product: Innovative Bakery Price: Value-for-money Promotion: Bread Showroom Place: Retail Outlets DIFFERENTIATION Freshly baked bread See-through kitchens Brand Ident ntity BRAND Bran and Image SERVICE Excellent Service PROCESS Open bakery-making process Source: Philip Kotler, Hermawan Kartajaya and Hooi Den Huan, Think ASEAN!, McGraw Hill
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