Marketing Strategy and Competitive Positioning pdf ebook
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hooley graham et al marketing strategy and competitive posit
Figure 2.8
SWOT analysis Strengths Good points Danger points What are we good at relative to competitors? Opportunities Internal External What changes are creating new options for us? Weaknesses What are we bad at relative to competitors? Threats What emerging dangers must we avoid or counter? 41 ESTABLISHING THE CORE STRATEGY 2.3.4 Core strategy Using the previous analysis, the company seeks to define key factors for success (KFS), sometimes termed ‘critical success factors’, in particular markets. KFS are those factors that are crucial to doing business in a particular industry, and are identified by examining differences between industry ‘winners’ and ‘losers’. They often represent the factors where the greatest leverage can be exerted – that is, where the most effect can be obtained for a given amount of effort. In the grocery industry, for example, KFS might centre on relationships between manu- facturer and retailer. The power of the major multiples (in the UK, the top three retailers, Tesco, Sainsbury’s and Asda, account for just under 60 per cent of sales) is such that if a new food product does not obtain distribution through the major outlets, a substantial amount of the potential market is unavailable, thus severely impacting on the overall viability of that product. In commodity markets, where price is often considered the only real means of product differentiation, a KFS might be production process efficiency. A further consideration when setting the core strategy for a multi-product or multi- divisional company is how the various corporate activities add up – the role in the com- pany’s overall business portfolio of each activity (see Chapter 6). Having identified corporate capabilities, market opportunities and threats, the key fac- tors for success in the industry in which the firm operates and the role of the particular product or business in the company’s overall portfolio, the company sets its marketing objectives. The objectives should be for both the long and short term. Long-term objectives indicate the future overall destination of the company – its long-term goals. To achieve those long-term goals, however, it is usually necessary to translate them into shorter-term objectives, a series of which will add up to the longer-term goals. Long-term objectives are often set in terms of profit or market domination for a firm operating in the commercial sector. Non-profit-making organisations, too, set long- and short-term goals. The long-term goal of Greenpeace, for example, is to help save the world’s environment. Often, short-term and long-term goals can become confused, or conflict. There is also the danger that setting them in isolation can result in a situation where the attainment of the short-term goals does nothing to further the long-term objectives and may, in some instances, hinder them. For example, a commercial company setting long-term market Download 6.59 Mb. Do'stlaringiz bilan baham: |
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