Base Presentation RGB Strategy

TOPICS
SWOT Of Individual Company And Industry /Sector

Multiple Potential
Personal SWOT
Sustenance Excellence Relevance Significance Framework
Personal Goals
Personal Vision
Aspire To Inspire
Business Environment Analysis
SWOT Of Company/organization
Core Competence
Value Chain
Competitive Advantage
Value Proposition
Value Curve
Vision
SWOT of industry /sector
Routes to competitive advantage
Road map to world class organization
Vision of my company

Permanent questions for Business
How will we
Create value?
How will we
Capture value?
How will we
Deliver value?
Exercise
What is your value proposition of your
company

Exercise
What is your value proposition

WINDOWS TO THE SELF
Known to Others
Unknown to Self

Known to Others
Known to self
Known to self
Unknown to Others

Known to Others
Unknown to Self
Known to Others
Known to self
Known to self
Unknown to Others

HIDDEN POTENTIAL
REVEALED THROUGH MULTIPLE POTENTIAL ANALYSIS
Known to Others
Unknown to Self
Known to
Others
Known to
self
Known
to self
Unknow
n to
Others

Known to Others
Unknown to Self
Known to Others
Known to self
UNKNOWN TO SELF
UNLNOWN TO OTHERS
Known to self
Unknown to Others

HUMAN POTENTIAL ENHANCEMENT
FRAMEWORK
Multiple Potential
Multiple Intelligence
Awareness is the first step
Practice
Mastery

OPP

STRENGTH

WEAKNESS

OPPORTUNITIES
THREATS
PERSONAL SWOT ANALYSIS
PERSONAL STRENGTH WEAKNESS
STRENGTHS
Physical
Mental
Leadership
Communication
Knowledge
Vision
Focus
Empathy
Thinking
Skills
SelfManagement
WEAKNESSES
Physical
Time management
Lack of focus
Procrastination
Self doubt
Nagging self criticism

Which is a better option
1 .Strength to excellence
or
2.Weakness to excellence
First is better
It is
Shorter
Less resistance
More enjoyable
More feasible
More productive

In apex move from macro to micro
We start from you
CRITICAL
SUCCESS
FACTORS
PORTFOLIO OF SKILLS UNIQUE SKILLS HAVING COMPETITIVE
CURRENT CAPABILITIES ADVANTAGE
CORE COMPETENCE = CONGRUENCE = COMPETITIVE ADVANTAGE
GOALS WORTH ACHIEVING MISSIONS IN LIFE =
STRATEGIC INTENTS
AIMLESS LIFE IS A GOALLESS DRAW
IF YOU DONT KNOW WHERE YOU ARE GOING YOU
WILL END UP SOMEWHERE ELSE
WHAT IS YOUR GOAL
INSEARCH OF SUSTENANCE
INSEARCH OF EXCELLENCE
INSEARCH OF RELEVANCE
IN SEARCH OF SIGNIFICANCE
INSEARCH OF EXCELLENCE INSEARCH OF SIGNIFICANCE
"A bag of tools
Isn't it strange, that princes and kings,
and clowns that caper in sawdust rings,
and even folks like you and me,
are builders for eternity?

To each is given a bag of tools,
a shapeless mass and a Book of Rules;
and each must make 'ere life has flown,
a stumbling block or a stepping stone.

ROLE VISION /MISION /GOALS
SON/DAUGTER
HUSBAND /WIFE
FATHERMOTHER
PROFESSIONAL
LEADER
FRIEND
FRIEND TO SELF
LOCAL ACTIVIST
REVOLUTIONARY
MEMBER OF SOCIETY
SPIRITUAL SEEKER

MISSIONS IN LIFE =GOALS WORTH LIVING FOR
GOALS WORTH LIVING FOR ARE GOALS WORTH DYING FOR
PERSONAL
GOALS
INSEARCH OF SIGNIFICANCE
1
2
3
4
5
111111
INSEARCH OF EXCELLENCE
1
2
3
4
5
11
1
2
3
4
5

1
2
3
4
5
PERSONAL VISION STATEMENT
ASPIRE TO INSPIRE
FROM FOLLOWERS TO LEADERS
ARE WE
I choose to live
so that which came to me as seed
goes to the next as blossom,
and that which came to me as blossom,
Goes on as fruit.

THERE ARE NO LIMITS TO
IMPROVEMENT
Business environment analysis

OPP

STRENGTH
FLEXIBILITY

WEAKNESS
EXECUTION

GREAT
OPPORTUNITIES
SERIOUS
THREATS
MEGATRENDS
FORCES SHAPING THE WORLD
ECONOMIC
SOCIAL/POLITICAL/
REGULATORY
GLOBALIZATION
ENVIRONMENTAL
CONCERNS
RESOURCES INCLUDING
ENERGY
T
E
C
H
N
O
L
O
G
Y
F
L
U
X
I
N
C
R
E
A
S
I
N
G

E
X
P
E
C
T
A
T
I
O
N
BUSINESS ENVIRONMENT ANALYSIS
Factors/trends affecting business
Megatrends
PEST analysis
Framework for outside-in thinking
Current environment

MEGA TRENDS
IMPACT ON SECTOR /INDUSTRY
1
Globalization
2
Liberalization of Indian economy
3
Economic growth and spatial dispersal
4
Demographic Changes Population growth and
urbanization
5
Scarcity of fossil fuels and natural resources and Rise of
alternative sources of energy new materials
6
Rapid advancement and spread of information and
communication technology
7
Lifestyle changes Rising levels of education Fashion
Media
8
Climate Change and Environmental concerns
9
Transparency and regulatory Environment
10
Rise of services
SPREADING INNOVATION THROUGH CREATIVITY
TECHNIQUE OF MULTIPLE PERSPECTIVE THROUGH MULTIPLE ANALOGY
TRANSFERRING ESSENCE FROM SOURCE DOMAIN TO TARGET DOMAIN

MEGA TRENDS
IMPACT ON YOUR BUSINESS
1
Globalization
2
3
4
Demographic Changes Population growth and urbanization
5
Scarcity of fossil fuels and natural resources and Rise of
alternative sources of energy new materials
6
Rapid advancement and spread of information and
communication technology
7
Lifestyle changes Rising levels of education Fashion Media
8
Climate Change and Environmental concerns
9
10
Rise of services
SPREADING INNOVATION THROUGH CREATIVITY
TECHNIQUE OF MULTIPLE PERSPECTIVE THROUGH MULTIPLE ANALOGY
TRANSFERRING ESSENCE FROM SOURCE DOMAIN TO TARGET DOMAIN

MEGA TRENDS FUNCTIONS
1
Globalization KNOWLEDGE MANAGEMENT
2
SUPPLY CHAIN MANAGEMENT
3
FINANCE
4
Demographic Changes Population
growth and urbanization
FIRM INFRASTRUCTURE

5
Scarcity of fossil fuels and natural
resources and Rise of alternative sources
of energy new materials
HR MANAGEMENT
6
Rapid advancement and spread of
information and communication
technology
OPERATIONS

7
Lifestyle changes Rising levels of
education Fashion Media
MANUFACTURING

8
Climate Change and Environmental
concerns
IT /COMMUNICATION

9
LOGISTICS

10
Rise of services
MARKETING /SALES /BRANDING

MULTIPLE PERSPECTIVE THROUGH MULTIPLE ANALOGY
IMPACT OF MEGATRENDS ON FUNCTIONS
Automobile
Indias automotive industry
Largest three-wheeler market in the world
Between 2004-05 and 2009-10, domestic sales registered an
annual average growth of 8.3%
Exports grew at an annual average growth of 20% between
2004-05 and 2009-10
2
nd
largest two-wheeler market in the world
Two-wheelers have the largest market share in India
In 2009-10, two-wheelers constituted 76.23% of the market
Annual average growth registered between 2004-05 and 2009-
10- 10.3%
Growth drivers - increasing demand from rural areas Two
wheeler penetration to increase from 22% to 26% over next 5
years
Automobile
Indias Automotive industry
4
th
Largest passenger car market in Asia & 10
th
largest in the
world
Passenger car sales in 2009-10 at 1.5 million units & exports at
4,41,710 units
Passenger car segment constitute 80% of the Passenger Vehicle
Industry
Compact & Mini cars constitute 80% of the total volume
India to become hub for small car exports
4
th
Largest Commercial Vehicle Market
Annual average growth in market size over 2004-05 -2008-09 -
21%
Automobile
Opportunities
Manufacturing Auto components to meet domestic
demand
Investment possible in key segments of auto components like
engine and engine parts, transmission and steering parts,
electrical parts, suspension and breaking parts
Nissan has identified India among the five low cost countries
to manufacture its new generation compact cars
Research & Development
Hyundai intends to make India a hub for small car
development
Development of new products that are environment
friendly
Electrical Machinery

Growth of this sector is driven by
Increasing demand for power and electrification - A
capacity addition of 78,700 MW has been proposed for the
Eleventh Five Year Plan (20072012), translating to a higher
demand for electrical machinery
Rapidly growing Industrial sector
Focus on investment in Infrastructure
The sector has been allowed 100 per cent foreign direct
investment (FDI) through the automatic route
India also has many Special Economic Zones (SEZs) in the
engineering sector.

Segments of Electrical Machinery
Generation
Equipment
Transmission
Equipment
Distribution
Equipment
Boilers
Production stood at USD 2.1 billion in 200809
India is a net importer of boilers
Turbines & Generator Sets
In 200809, production of turbines and generators was
valued at USD 874 million and USD 370 million
India is a net importer of turbines and a net exporter of
generators
Transformers
Transformer production in 200809 stood at 72 million KVA,
with India being a net importer of transformers
Switch Gears & Control Gears
Production of switchgears and control gears stood at 17.8
million units in 200809

Nuclear Sector
Huge investment potential in Higher Capacity Thermal Units &
Nuclear Reactors
The Government of India (GOI) proposes to add 3,380 MW of
nuclear power capacity by 2012
With signing of nuclear agreements with different countries,
India to become a major hub for manufacturing nuclear
reactors and associated components
Consumer Durables

The size of the consumer durable and
electronics sector is around USD 6.6
billion
The consumer durables sector grew by
26.2% in 2009-10 and in Q1 of 2010-11
recorded 29% growth
Growth in Market Size between 2003-
04 and 2007-08
Refrigerators - 81%
Washing Machines - 68%
Air Conditioning -217%
Equipment
Market Potential can be
visualized from the
following Penetration
Levels

Refrigerator use is around
18% of the population
Washing machine 6%
Air conditioner less than
2%
Microwave oven around
1%
Food Processing

India is the.
Largest producer of pulses, milk, cashew nuts, coconuts and
tea in the world
Second largest producer of rice, wheat, sugar, ground nut
and inland fish
Second largest producer of fresh vegetables and accounts for
15% of world production
Accounts for 10% of world fruit production, producing 41% of
world mangoes and 23% bananas
However about 30-40% of the farm produce is wasted in the country
Food Processing

India is the.
Food is the biggest
consumption category in India
with 31% of consumers wallet
expenditure
Processed food market in India is
at nascent stage of development
Food processing level for fruits
and vegetables in India is just
2.2% compared to 65% in US
and 23% in China
Industry is poised to reach
USD 318 billion by 2020
Opportunities in
Warehousing and cold
development storage
Packaging machinery
technology
Lab infrastructure
Dairy processing
Food processing units for
domestic sales/ exports
Tourism

3882.6
4465.7
4921
6181.7 6008
6778.2
24252.4
0
5000
10000
15000
20000
25000
30000
2005 2006 2007 2008 2009E 2010E 2020E
Travel & Tourism Demand (INR billion)
Travel & Tourism contributed
8.6% to GDP in 2010, likely to increase to 9% by 2020
10% to employment in 2010
Government to increase investments in the sector to 9% of GDP
Over the next decade,
demand for travel and
tourism is expected to
achieve an annualized
growth of 9.2%
Tourism

Opportunities
Hotel Infrastructure
In November 2009, there were about 1,25, 000 rooms
available
55,000 new rooms expected to be added by 2013-14
Huge opportunities for investments budget hotels in Tier I & II
cities which are buzzing with business activity
Wellness Tourism
Indias Wellness services market worth USD 2.9 billion &
expected to grow at 30% per annum for the next 4-5 years

Tourism

Opportunities
Rejuvenation Segment
Rejuvenation segment (spas, alternate therapies, ayurvedic
treatments etc) to grow to INR 194.5 billion by 2014 from INR
43.7 billion in 2009
Fitness segment
Fitness segment (comprising gyms and slimming centers) to
grow very fast, weight management category growing at
CAGR of 13%
On-ground infrastructure
Huge opportunities for investment in building on-ground
infrastructure like roads, rail connections, hotels, restaurants
and other wayside amenities

Gems & Jewellery

Indias Current Advantage
Ability to deliver good quality at low costs
Cost of cutting diamonds in India is 7% of that in Belgium and
60% of that in China
The exports are expected to
grow at CAGR of 15%,
amounting to USD 58 billion
by 2015 from current size of
USD 25 billion
25
58
0
20
40
60
80
Gems & Jewellery Exports
(USD billion)
Source: Unlocking the potential of India's Gems &
Jewellery Sector, FICCI Technopak report
2009 2015

Raw
Materials
Processed
Raw Material-
Low Value
Processed
Raw
Material
High Value
Mass
Jewellery
Designer
Jewellery
Branded
Jewellery
Indias Current Dominant Position
Gems & Jewellery Value Addition Ladder
Opportunities
Gems & Jewellery

Chemicals

Chemical Sector including pharmaceuticals and petrochemical
has an annual turnover of approximately USD 83 billion, which is
equivalent to 5% of Indias GDP. It is the 12
th
largest in the world in
terms of volume and third largest in Asia.
Major raw material component sources available in the country
Base chemicals is the largest segment accounting for ~53% of the
total industry followed by pharmaceuticals with ~24%
Indian pharmaceutical industry is ranked 3
rd
in the world in terms
of production volume and 14
th
in terms of domestic consumption
value.
The Indian pharmaceutical industry was estimated at USD 19.4
Bn in FY09. Formulations account for ~65% and bulk drugs for the
balance 35% in value terms.
Chemicals

India is the fourth largest producer of agrochemicals globally, after
US, Japan and China.
Petrochemicals sector expected to grow 12.5 MMT by 2011-12
Investment potential about $ 17 billion
Petroleum, Chemicals and Petrochemicals Investment Regions
(PCPIR) are coming up in a number of Indian states. PCPIRs are
specifically delineated investment regions with an area of around
250 sq km and planned investments greater than USD 15-20 Bn.
Investments of over USD 280 Bn have been planned across the
three approved PCPIRs Bharuch, Visakapatnam and Haldia and
three planned PCPIRs Mangalore, Cuddalore and Paradeep.
Chemicals

Indian Biotechnology industry crossed the USD 3 billion mark in
FY10 (including bio-services and bio-informatics), registering a
year-on-year growth of 17%
The year-on-year growth of the biotech market is expected to
accelerate driven by high demand for vaccines, biopesticides,
biofertilizers, biodiesel and biotherapeutics in India as well as at
the global level.
BioPharma segment grew at a CAGR of 11.9 % in 2009-10. It
contributed $1.9 bn, accounting for 62 percent market share.
Construction

The sector is among
fastest growing sectors
top 5 recipients of FDI
100% FDI permitted
Largest employers (including construction and facilities
management)

The market value of real estate under construction projects
crossed USD 100 billion in 2010 from USD 69.4 billion in end of
2006
Construction

Opportunities
Residential Housing
Housing shortage to increase from more than 24 million units
in 2007 to 26 million units by 2012.
Commercial
The demand for office space is expected to total 180 million sq
feet by 2013
Retail
Cumulative Retail demand is expected to reach 43 million
square feet by 2013. Around 46% of the estimated demand will
be focused on tier I cities between 2009 and 2013

Infrastructure

Roads and Highways
India has one of the largest road networks in the world, with a
total length of 3.3 million km
During the XI th Plan around USD 65.4 billion is likely to be
invested in the roads sector, of which 34% will be contributed by
the private sector, which translates to 35,000 km over the next
five years
The Government of India (GoI) has permitted 100% FDI in the
road sector
Ministry of Road Transport and Highways has set a target of
completion of 20 km of national highways per day

Infrastructure

Telecom
One of the fastest growing sectors with over 15 million new
subscribers being added to the network every month
Second largest wireless network in the world
India has emerge as the country which offers the lowest mobile
tariffs across the globe.
While the mobile services space have seen exponential growth in
urban areas, these have not yet reached the vast majority in rural
areas with rural teledensity of approximately 27.8 percent,
indicating huge untapped potential for the sector.
The rural market is expected to drive the next round of growth for
the voice-based services, while data services will create the much
needed churn within the maturing urban markets.
Infrastructure

Telecom
Allotment of 3G spectrum and BWA licenses have been
complete. This will open multiple dimensions for wireless
broadband, 3G services
Broadband is yet to reach a critical mass despite rapid growth;
the numbers have risen from 6.98 million in August 2009 to
10.52 million by 31
st
October 2010, registering a growth of 55
percent on an annual basis. With subscriber penetration under
2 %, the sector has potential for aggressive growth in the future.
India to evolve as a hub for telecom equipment manufacturing
Several new home grown players are rapidly expanding their
market presence

Infrastructure

Power
A study by McKinsey called "Powering India: Road to 2017
estimates India's power demand to increase to 315-335 GW by
2017
At present, Indias total installed capacity is 1,62,367 MW
Government of India projects an investment of USD 4.3 billion
for renovation and modernization of various old power plants
during 11th and 12th Five-Year Plans
Additionally, an investment of USD 213.7 billion is proposed for
capacity addition of 78,700 MW in the 11th Plan (2007-12) and
USD 235.1 billion to add over 94,431 MW in the 12th Plan
Immense opportunities exist for private sector participation in
generation, transmission, distribution equipment
Infrastructure

Railways
Railways are the lifeline of Indian economy and will have a
larger role in future as the country grows
It is third largest network in the world
Government undertaking modernization and augmentation of
railway infrastructure, improvement in passenger facilities and
security PPP projects being initiated & identified
The sector expected to generate private investments worth
USD 4.3 billion during Eleventh Five Year Plan

Vision : To develop DMIC as global manufacturing and trading hub supported
by world class infrastructure and enabling policy framework.
Mega infra-structure project worth USD 90 billion
covering an overall length of 1483 KMs between Delhi
and Mumbai
First phase of the project is expected to come up by
2018
Total of 24 nodes (11 Investment Regions & 13
Industrial Areas) identified in consultation with 6 state
governments.
11 Investment Regions ~ 200 Sq km area (min)
13 Industrial Areas ~100 Sq km area
Huge opportunities for various players across the value
chain - power, transportation, equipment providers and
internal infrastructure

Delhi Mumbai Industrial Corridor (DMIC)
LEVERAGING NEW
TECHNOLOGY SECTORS
Innovating for next billion customers..
Innovating in India for India/Emerging Markets
From product modification to product innovationMNCs
embracing the new Made in Indiavalue for money paradigm
to have mass appeal
Microsoft India has taken initiatives like language interface
packs in 12 Indian languages. And Windows Live, includes e-
mail, instant messenger, online storage, photo gallery and social
networking in seven Indian languages
LG has launched low priced TV range Cineplus and
Sampoorna for rural markets
GE developed an ECG machine, MAC 400, to serve the rural
market. This is portable and costs about US$1,000
Following Tata Nano, global automakers giants such as GM,
Nissan etc. have announced entry into the small car segment
Homeland Security
Growing focus on Homeland security in India in the backdrop of
robust economic growth and an increasing threat of disruptive
activities
India to become one of the major civil security markets in the
world with expected cumulative spending of over USD 10
billion by 2017
By 2020 about 6 per cent of global procurement in the field of
homeland security is expected to be emanated from India
Segments to witness growth: electronic security market &
system integration, consultancy and training
Major opportunities exist in security related equipment such as
Intrusion detection systems, vehicle scanners, entry barriers,
detection devices, access control, surveillance, Supervisory
control and data acquisition systems (SCADA)
Green Technology
India is committed towards ensuring an Eco friendly growth -
The country targets to meet 15% of its energy requirement
through renewable sources by 2020
Challenge for India harnessing renewable energy sources in
terms of cost effectiveness & bring greater efficiency
Opportunities in
photovoltaic solar panels
highly efficient water heaters & batteries
next generation cars like hybrids and electrical cars
Animation & VFX
Source: FICCI-KPMG Media & Entertainment Industry Report
Estimated costs for 30
minutes of animated content
India Korea, Philippines North America
2D Hand drawn USD 45,00050,000 USD 60,750 67,500 USD 180,000 200,000
3D USD 90,000 USD 121,500 USD 360,000
Backend production USD 200,000 USD 270,000 USD 800,000
Flash Animation USD 20,000 USD 27,000 USD 80,000
Size of Indias Animation & VFX industry USD 40.9 m in 2009
Estimated to reach USD 96.4 m by 2014
While Indian studios are adept at 2D, 3D & flash animation, Stop
motion capabilities are still in early stages of development
With 8 children channels focusing on broadcasting animated
series, India is one of the largest animation consuming markets
for television
In comparison to other countries providing high quality animation
services, India offers significant cost arbitrage
Gaming
Gaming estimated to be the fastest growing sector in the Media and
Entertainment Industry in the next 5 years
Growth Drivers
Mobile Gaming - Increasing telecom subscribers; Rollout of 3G &
Increasing usage of mobile VAS
Console Gaming - Young population; Rising disposable income &
Move towards service oriented models
Online Gaming - Increasing broadband subscribers; Higher PC
penetration & Strong marketing through social networks etc
Gaming Industry
(USD million)
2009 2014 CAGR
(2009 2014)
Mobile 3.7 29.6 51.6 %
Console 10.1 24 18.9 %
Online & PC 2.5 12.6 38.2 %
Total Industry Size 16.3 66.2 32.4 %
Source: FICCI-KPMG Media & Entertainment Industry Report
Examples of Strengths
A strategy supported by good skills and expertise in key
areas.
A strong financial position; ample financial resources to
grow the business.
Strong brand name, image of company, reputation.
A widely recognized market leader and an attractive
customer base.
Ability to take advantage of economies of scale/scope or
learning and experience curve effects.
Proprietary technology/skills advantage, important patents.

Examples of Strengths contd
Product innovation skills.
Cost advantages.
Strong advertising/promotion.
Proven skills in production/manufacturing.
A reputation for good customer service.
Well positioned company, better product quality
relative to competitors.
Wide geographic coverage and distribution
capabilities.
Alliances/joint ventures with other companies.
Skilled work force, harmonious work environment.

Examples of Weaknesses
No clear strategic direction.
Obsolete facilities/equipment/processes.
A weak balance sheet(poor financial capabilities),
debt burdened.
Higher overall unit costs.
Missing some key skills or competencies/lack of
management depth.
Poor sales/profits/growth.
Plagued with internal operating/manufacturing
problems.
Examples of Weaknesses contd.
Falling behind in R&D.
Too narrow a product line.
Weak brand image/position/reputation.
Weaker dealer or distribution network.
Poor marketing skills.
Lots of underutilized plant capabilities.
Poor product quality.
Poor customer/market orientation.
Opportunities
Developments in science and technology.
Changes in markets on both a national and international scale.
Changes in government policy e.g. removal of international trade barriers.
Changes in social patterns, population profiles, lifestyle changes, etc.
Mergers, joint ventures or strategic alliances based on geopolitical and
public-private partnerships.
Non-investment or other reason leading to a market being vacated by a
competitor technology.
An unfulfilled customer need e.g. a specific data requirements or data
required for a particular geographical area.
Opportunities to add value and increase profit margin e.g. new business
models for the knowledge economy and information society.

Threats

Changing demand.
Emergence of new technologies or innovative products and
services.
New regulations or increased trade barriers .
Government subsidies for competing technologies or
disadvantageous taxation e.g. gaseous emissions.
Competing technologies that blend better with societal and
technological trends.
Changing specifications for products and services.
Economic sustainability.
SWOT Analysis
What to Look For
Potential Strengths
Potential
Weaknesses
Potential Company
Opportunities
Potential External
Threats
Powerful strategy
Strong financial
condition
Strong brand name
image/reputation
Widely recognized
market leader
Proprietary technology
Cost advantages
Strong advertising
Product innovation
skills
Good customer service
Better product quality
Alliances or JVs
No clear strategic
direction
Obsolete facilities
Weak balance sheet;
excess debt
Higher overall costs
than rivals
Missing some key
skills/competencies
Subpar profits
Internal operating
problems . . .
Falling behind in R&D
Too narrow product
line
Weak marketing skills
Serving additional
customer groups
Expanding to new
geographic areas
Expanding product line
Transferring skills to
new products
Vertical integration
Take market share
from rivals
Acquisition of rivals
Alliances or JVs to
expand coverage
Openings to exploit
new technologies
Openings to extend
brand name/image
Entry of potent new
competitors
Loss of sales to
substitutes
Slowing market growth
Adverse shifts in
exchange rates & trade
policies
Costly new regulations
Vulnerability to
business cycle
Growing leverage of
customers or suppliers
Reduced buyer needs
for product
Demographic changes
Combined Analysis

The value chain and SWOT can be combined in
different ways.
The value chain analyses the businesss internal
environment so it can be used in place of the
strengths and weakness portion of the SWOT.
Most often, the value chain is used in conjunction
with SWOT, creating a comprehensive business
analysis that incorporates both internal and
external evaluation.

Core competence

Competencies vs. Core Competencies
vs. Distinctive Competencies
A company competence is the product of organizational
learning and experience and represents real proficiency in
performing an internal activity
A core competence is a well-performed internal activity that
is central (not peripheral or incidental) to a companys
competitiveness and profitability
A distinctive competence is a competitively valuable activity
that a company performs better than its rivals
Company Competencies and Capabilities
Stem from skills, expertise, and experience
usually representing an
Accumulation of learning over time and
Gradual buildup of real proficiency in
performing an activity
Involve deliberate efforts to develop the ability to do something,
often entailing
Selection of people with requisite knowledge and expertise
Upgrading or expanding individual abilities
Molding work products of individuals into a cooperative effort
to create organizational ability
A conscious effort to create intellectual capital
Core Competencies: A
Valuable Company Resource
A competence becomes a core competence when the
well-performed activity is central to the companys
competitiveness and profitability
Often, a core competence results from
collaboration among different parts of an
organization
Typically, core competencies reside in a
companys people, not in assets on the
balance sheet
A core competence gives a company a potentially valuable
competitive capability and represents a definite
competitive asset
Types of Core Competencies
Expertise in building networks and systems to enable e-
commerce
Speeding new/next-generation products to market
Better after-sale service capability
Skills in manufacturing a high quality product
Innovativeness in developing popular product features
Speed/agility in responding to new market trends
System to fill customer orders accurately and swiftly
Expertise in integrating multiple technologies to create
families of new products
Distinctive Competence -- A
Competitively Superior Resource
# 1
A distinctive competence is a competitively
significant activity that a company performs
better than its competitors

A distinctive competence
Represents a competitively valuable
capability rivals do not have
Presents attractive potential for
being a cornerstone of strategy
Can provide a competitive edge in the
marketplacebecause it represents a competitively
superior resource strength
Strategic Management Principle
A distinctive competence
empowers a company to build
competitive advantage!
Examples: Distinctive Competencies
Sharp Corporation
Expertise in flat-panel display technology
Toyota, Honda, Nissan
Low-cost, high-quality manufacturing capability and
short design-to-market cycles
Intel
Ability to design and manufacture ever more
powerful microprocessors for PCs
Motorola
Defect-free manufacture (six-sigma quality) of cell
phones
Determining the Competitive
Value of a Company Resource
To qualify as the basis for sustainable competitive
advantage, a resource must pass 4 tests
1. Is the resource hard to copy ?
2. Does the resource have staying power -- is it
durable ?
3. Is the resource really competitively superior ?
4. Can the resource be trumped by the different
capabilities of rivals ?
Strategic Management Principle
Successful strategists seek to capitalize on
and leverage a companys resource
strengthsits expertise, core
competencies, and strongest competitive
capabilitiesby molding the strategy
around the resource strengths !
VALUE CHAIN
Value Chain
Value Proposition
Value Curve
The Relationship Between SWOT and
Value Chain

In many cases, the SWOT method is an inadequate analysis of the
internal business environment.
Simply stating strengths and weakness gives a brief explanation of
what the company does best and where theres room for
improvement, but the SWOT leaves out many of the details of the
companys operations.
The value chain fills in some of the internal analysis gaps that SWOT
leaves.
Conversely, value chain analysis virtually ignores the external
environment by examining only the needs and desires of
customers.
In many ways, SWOT analysis and the value chain give a more
complete picture of the business environment when used together.

Peers
Value Chain Evolution
Platform Peers Aggregator
Inputs Manufacturer Marketer Distributor Retailer
Cheap information disintegrates value chainsof scope integrated production becomes costly

Cheap coordination atomizes disintegrated value chains

Inputs, Manufacturing, Marketing, Distribution, Retail
Costly info and coordination integrates value activities most economical way to produce

Peers
110
Suppliers
Manufacturer
End User
Distributor
Retailer
Value-Added
Reseller
Corporate
Reseller
THE TRANSITION IS FROM LINEAR value chain
111
Suppliers
Manufacturer
End User
Distributor
Retailer
Financing
Provider
Publisher
Value-Added
Reseller
Corporate
Reseller
NETWORK VALUE CHAIN
NETWORK VALUE CHAIN
VALUE CHAIN
Value chain captures the discrete activities a firm
performs in designing, producing, marketing and
distributing its product.
A tool to analyze competitive advantage:
How each activity is performed combined with its
economics will determine whether a firm is high or
low cost relative to competitors.
How each value activity is performed will also
determine its contribution to buyer needs and hence
differentiation.

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Primary
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Business Value Chain
Products/
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A process can be seen as a value chain. By its contribution to the creation or
delivery of a product or service, each step in a process should add value to the
preceding steps.
Rummler and Brache, Improving Performance
The Value Chain System for
an Entire Industry
Assessing a companys cost competitiveness
involves comparing costs all along the industrys
value chain
Suppliers value chains are relevant because
Costs, quality, and performance of inputs provided
by suppliers influence a firms own costs and
product performance
Forward channel allies value chains are relevant
because
Forward channel allies costs and margins are part
of price paid by ultimate end-user
Activities performed affect end-user satisfaction
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Enterprise Supplier Supplier-1 Customer Customer+1

Value Chain Activities Of Pulp & Paper Industry

Timber farming
Logging
Pulp mills
Papermaking
Printing & publishing
Value Chain Activities Of Home Appliance Industry

Parts and components manufacture
Assembly
Wholesale distribution
Retail sales

Value Chain Activities Of Soft Drink Industry

Processing of basic ingredients
Syrup manufacture
Bottling and can filling
Wholesale distribution
Retailing
Kroger
Value Chain Activities Of Computer Software Industry

Programming
Disk loading
Marketing
Distribution
Competitive advantage

LOW-COST AND DIFFERENTIATION
There are two basic types of competitive advantage
Low-cost
Differentiation.
Three generic strategies
Cost leadership
Differentiation,
Focus (cost and differentiation in a narrow segment).

The learning organization, the path to
Sustainable competitive advantage

Knowledge is the key differentiators
Leveraging implicit knowledge
Process needs and optimized
Resources need to synergized

FOR SUSTAINABLE COMPETITIVE ADVANTAGE, A
RESOURCE MUST HAVE FOUR ATTRIBUTES

It must be valuable, in the sense that it exploits
opportunities and/or neutralizes threats in a firm's
environment.
It must be rare among a firm's current and potential
competition.
It must be imperfectly imitable.
Finally, there cannot be strategically equivalent
substitutes for this resource that are valuable but
neither rare or imperfectly imitable.

PORTERS FIVE FORCE MODEL
Comparing the value chains
Comparing the value chains of competitors exposes
differences that determine competitive advantage.
Not only the activities themselves, but also how they interact
can be determinant.
These "linkages" are complex but when recognized and well
managed, they can create a differentiation advantage.
By selecting the appropriate strategy built on a creative value
chain to favor its competitive position within the industry and
by creating mobility barriers, a firm could sustain above-
average

Benchmarking
Costs of Key Value Chain Activities
Focuses on cross-company comparisons of how
certain activities are performed and the costs
associated with these activities
Purchase of materials
Payment of suppliers
Management of inventories
Training of employees
Processing of payrolls
Getting new products to market
Performance of quality control
Filling and shipping of customer orders
Objectives of Benchmarking
Determine whether a company is performing particular value
chain activities efficiently by studying the practices and
procedures used by other companies
Understand the best practices in performing an activitylearn
what is the best way to do a particular activity from those who
have demonstrated they are best-in-industry or best-in-world
Assess if companys costs of performing particular value chain
activities are in line with competitors
Learn how other firms achieve lower costs
Take action to improve companys cost competitiveness
What Determines Whether a
Company is Cost Competitive?
A companys cost competitiveness depends on how well it
manages its value chain relative to how well competitors
manage their value chains
When a companys costs are out-of-line, the high- cost
activities can exist in any of three areas in the industry value
chain
1. Suppliers activities
2. The companys own internal activities
3. Forward channel activities
Activities,
Costs, &
Margins of
Forward
Channel
Allies &
Strategic
Partners
Internally
Performed
Activities,
Costs, &
Margins
Activities,
Costs, &
Margins of
Suppliers
Buyer/User
Value
Chains
From Value Chain Analysis
to Competitive Advantage
A company can create competitive advantage by
managing its value chain to
Integrate knowledge and skills of employees in
competitively valuable ways
Leverage economies of learning / experience
Coordinate related activities in ways
that build valuable capabilities
Build dominating expertise in a value chain activity
critical to customer satisfaction or market success
How Strong is the Companys Competitive Position?
The strength of a companys competitive position in the
marketplace hinges on
Whether firms position can be expected to improve or
deteriorate if present strategy is continued
How firm ranks relative to key rivals on each industry KSF
and relevant measure of competitive strength
Whether firm has a sustainable competitive advantage or
finds itself at disadvantage relative to certain rivals
Ability of firm to defend its position in light of
Industry driving forces
Competitive pressures
Anticipated moves of rivals
Assessing a Companys Competitive Strength versus
Key Rivals
1. List industry key success factors and other relevant measures
of competitive strength
2. Rate firm and key rivals on each factor using rating scale of 1
to 10 (1 = very weak; 5 = average; 10 = very strong)
3. Decide whether to use a weighted or unweighted rating
system (a weighted system is usually superior because the
chosen strength measures are unlikely to be equally
important)
4. Sum individual ratings to get an overall measure of
competitive strength for each rival
5. Determine whether firm enjoys a competitive advantage or
suffers from a competitive disadvantage based on the overall
strength ratings
MEGA TRENDS FUNCTIONS
1
Globalization KNOWLEDGE MANAGEMENT
2
SUPPLY CHAIN MANAGEMENT
3
FINANCE
4
Demographic Changes Population
growth and urbanization
FIRM INFRASTRUCTURE

5
Scarcity of fossil fuels and natural
resources and Rise of alternative sources
of energy new materials
HR MANAGEMENT
6
Rapid advancement and spread of
information and communication
technology
OPERATIONS

7
Lifestyle changes Rising levels of
education Fashion Media
MANUFACTURING

8
Climate Change and Environmental
concerns
IT /COMMUNICATION

9
LOGISTICS

10
Rise of services
MARKETING /SALES /BRANDING

MULTIPLE PERSPECTIVE THROUGH MULTIPLE ANALOGY
IMPACT OF MEGATRENDS ON FUNCTIONS
ELEMENTS OF
VALUE CHAIN
MY COMPANY RIVAL 1 RIVAL 2

RIVAL 3

RIVAL 4
1
KNOWLEDGE
MANAGEMENT
2
SUPPLY CHAIN
MANAGEMENT
3
FINANCE
4
FIRM
INFRASTRUCTURE
5
HR MANAGEMENT
6
OPERATIONS
7
MANUFACTURING
8
IT
/COMMUNICATION
9
LOGISTICS

10
MARKETING /SALES
/BRANDING
Overall strength
rating

Competitive Strength
Assessment Rating Scale: 1 = very weak; 5 = average; 10 = very strong

ELEMENTS OF
VALUE CHAIN
MY COMPANY RIVAL 1 RIVAL 2

RIVAL 3

RIVAL 4
1
KNOWLEDGE
MANAGEMENT
2
SUPPLY CHAIN
MANAGEMENT
3
FINANCE
4
FIRM
INFRASTRUCTURE
5
HR MANAGEMENT
6
OPERATIONS
7
MANUFACTURING
8
IT
/COMMUNICATION
9
LOGISTICS

10
MARKETING /SALES
/BRANDING
Overall strength
rating

Competitive Strength Assessment
WEIGHTED
Why Do a Competitive
Strength Assessment ?
Reveals strength of firms competitive position
vis--vis key rivals
Shows how firm stacks up against rivals, measure-
by-measurepinpoints firms competitive strengths
and competitive weaknesses
Indicates whether firm is at a competitive advantage
/ disadvantage against each rival
Identifies possible offensive attacks (pit company
strengths against rivals weaknesses)
Identifies possible defensive actions (a need to
correct competitive weaknesses)
Identifying the Strategic Issues
Is the present strategy adequate in light of
competitive pressures and driving forces?
Is the strategy well-matched to the industrys future
key success factors?
Does the company need new or different resource
strengths and competitive capabilities?
Does present strategy adequately protect against
external threats and resource deficiencies?
Is firm vulnerable to competitive attack by rivals?
Where are strong/weak spots in present strategy?
Value proposition

SO WHAT IS A VALUE PROPOSITION?
Part of a firms business model
An element of strategy
A reflection of the value a firm offers its customers
And finally A carefully crafted marketing message
Communicates a clear point of differentiation
Is highly persuasive
Supports lead generation and sales
And more

A VALUE PROPOSITION IS
DEFINITION - VALUE PROPOSITION
A value proposition describes why a customer
should buy a product or service
It targets a well defined customer segment
It convinces prospective customers that a
particular product or service will add more
value or better solve a problem than
competitive products or services
MICHAEL PORTERS MODEL
A value proposition answers three questions:
Which
customers?
Which
needs?
What
relative
price?
WHAT END USERS
AND CHANNELS?
WHICH PRODUCTS,
SERVICES, FEATURES?
PREMIUM OR
DISCOUNT?
147

For: List target customers or beneficiaries. Group them and
ultimately define THE customer or beneficiary.

Who: Define the need or opportunity. What is critical issue?

The: Name your product, service or concept. Place the product,
service, or concept into a generally understood category

That: Quantify the benefits of the product, service, or concept.
Identify the single most compelling benefit

Unlike: List the competitors and competitive alternatives

Our: Differentiate the product, service, or concept. Set it apart
from the competition.

Creating your Value Proposition
Asserts the
VALUE of the
offering
POSITIONS the
value
What is the value proposition of the
following companies
Priyagold
Haldirams
Futures group
Flipkart
Micromax
Dr Lal PathLabs
Ghari chaap detergent
Hanung Toys & Textiles Limited
Kajaria Ceramics Limited

Visualising value propositions

The concept of a Value Curve is to use a diagram to
compare products on a range of factors by rating them on a
scale from low to high.
These can be features, benefits or ways in which a product
is distributed or consumed.
The combination of these various factors defines the
product or service.
Multiple Value Curves allow a visual comparison with
competitive products and to unearth possible spaces or
gaps in the market.
By investigating the feasibility of these gaps .
It may be possible to identify changes to the product that
significantly alter the value proposition.

Value Curve Case Study : ING Direct

ING is a global financial institution.
ING Direct is a sub-brand that covers consumer
banking products the Direct refers to the direct-to-
consumer aspect of the products.
ING Direct started off with savings accounts no
branches, no ATM network, no peripheral products.
This light model meant that ING had lower fixed and
operational costs and combined with its clout in
financial markets, it was able to offer interest rates
significantly higher than that of competitors and do so
with no account keeping fees.

To start with, we put together a simple chart as shown
below. On the y-axis we have a spectrum that ranges from
low to high.
On the x-axis we record a number of features or elements
that define the product: the interest rate offered access to
funds, channels for interaction and of course, fees.
We show the ING Direct Savings Maximiser account in
green
Traditional bank savings account in blue (the type where
funds are locked in for x number of months or years)
Current account in red where salary gets paid into and
from which funds can be accessed.

COMPARISON
Value Curve ING Direct
Looking at the Value Curve, its very obvious that the ING Direct offering differs greatly to its rivals.
By cutting out costly traditional elements such as a branch network, ATMs and additional banking
products it is able to keep its business model simple and its costs down.
It provides a stripped back interest bearing account with a higher rate of interest than rivals, and it
does so with no fees. Note, on a Value Curve price is inverted a high value means a great price
which is zero! A low value means a higher price. This inversion sometimes seems counter-
intuitive, but think of it from the customers perspective what price would make you happy?
The rival savings account (in blue) also offers high interest rates, but these require the customer to
commit funds for a period of time and so they have a low value in terms of access to funds and
dont really take advantage of the branch and ATM network.
The competing current accounts are more accessible, but provide low interest rates and are also
the most expensive accounts typically incurring monthly fees.
Of course, ING Directs service isnt for everyone. Its reliance on internet and telephone access
meant that in the early days it missed out on the less technically savvy consumer out there. But it
has developed its product with particular individuals in mind and has gone from strength-to-
strength as customers become more au fait with online banking. It has continued to refine the
product over time with features such as bonus interest and recurring instalments. Its entire
marketing message resonates with an audience that wants simple, fee-free, high interest offering.

Raise Reduce Create Eliminate
Youve made the curve, now what?
Whether you are working on a new product development or you are refining an existing product,
Chan and Maugborne suggested four ways to alter a product based on Value Curve analysis. These
are:
Raise: Can any existing elements be enhanced or increased? ING Directs primary focus is on
maximising the interest rate it offers to customers.
Reduce: on the flip-side, are there any elements that can be reduced? These may be features that
are of little value relative to their cost. With no branch network, ING Direct has a slightly reduced
access to account compared to a current account but the types of customers it caters for do not
value a branch network highly for this product.
Create: is there anything that can be introduced that to date has not been available within the
market? A new feature that makes the product more effective in solving the customers problem.
ING Direct introduced the ability for a portion of a regular salary to be automatically paid into the
savings account.
Eliminate: are there any elements to the product that add no real value to customers but are simply
there as part of a status-quo. Its perhaps very obvious that customers dislike monthly fees, but
most banks need to charge these to cover their costs. However ING Direct was able to eliminate
bank fees by cutting out costly elements such as a branch infrastructure.

Putting the Value Curve into practice

Product must be both relevant and compelling for customers, and
should be distinct from competitors in attributes that they value.
Putting the Value Curve into practice
The Value Curve is sometimes criticised as simplistic, academic and
overlooking of less tangible factors (brand personality and so on).
Theres also a risk to assuming that all customers want the same
thing as noted, there are multiple segments in any market. The
inverting required when showing price can also cause confusion.
That said, its an easy-to-use tool that pretty much anyone can
understand just by looking at. If your products Value Curve closely
follows that of your rivals, you will likely have a tough time
differentiating it. Spend a bit of extra time identifying what values
your target customers value most and you may be able to tweak
your product (cut a little bit of this, add a little bit of that) and you
will become more relevant and compelling.

THE BASIC QUESTION??
PURPOSE OF A BUSINESS ENTITY!!
CUSTOMER
WHY DO CUSTOMERS EXIST?
THEY VALUE THE OFFERING
THE EXISTENCE OF A BUSINESS DEPENDS ON WHAT
VALUE IT OFFERS TO CUSTOMERS
Tata Motors
INDIGO
TITAN
WHAT THESE COMPANIES
HAVE IN COMMON
EXPERIENCES OF AIR TRAVEL!!!
WHICH AIRLINES DO YOU PREFER AND WHY??
FLYING AIR INDIA: EXPERIENCES!!
ENSURE THAT YOU HAVE INSURANCE
KEEP REQUIRED STUFF IN YOUR CABIN BEGGAGE
TAKE AN EARLY FLIGHT
BOOKING WINDOW WILL OPEN LATE
ENTERTAINMENT
STEWARD RESPONSE
SAFETY CONCERNS
YOUR RESPONSE TO TRAVELLING BY
NATIONAL CARRIER
SAFETY CONCERNS
OLD AIRCRAFTS
POOR HOSPITALITY
HIGH COST OF TRAVEL
UNRELIABLE TIMINGS
ON BOARD ENTERTAINMENT
could not provide values to its customers as per
their expectations and
Value offered is less that cost of delivery

THE BLEEDING NATIONAL CARRIER
Passengers hold dharna as pilot fails to
turn up
That Air India is in serious difficulties is an open secret
Manmohan Singh
LOW COST AIRILES CHANGING THE GAME WITH
NEW VALUE OFFERINGS

CASE OF INDIGO AIRLINES
IndiGo a leading Domestic & International Indian
Airlines which offers always cheap affordable, on time
and hassle free operation at the Low cost, ...

Competitive Pressure
F
u
l
l

S
e
r
v
i
c
e

Price
Low cost Carriers changing
the game
Indigo
Breakdown of cost saving
0 5 10 15 20 25
Other operating costs
Flight crew
Cabin crew
Aircraft fuel and oil
Airport and ANS charges
Sales and reservations costs
Advertising and promotions costs
Station costs
Commission
Aircraft related costs
Passenger services costs
Cost per 000 RPK ()
Full cost short
haul airline
Low cost airline
THE VALUE CURVE
0
1
2
3
4
5
6
AIR INDIA
JET AIRWAYS
INDIGO
THE VALUE RADAR
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
SAFETY
IN-FLIGHT SERVICES
CUISINE
GROUND SERVICES
ENTERTAINMENT
COST
PUNCTUALITY
AVAILABILITY
DESTINATIONS
AIR INDIA
JET AIRWAYS
INDIGO
TATA NANO
World's most low priced car, Tata Nano, with the
price tag of Rs. 1 lakh is all here. Also called People's
Car Tata Nano is the realization of a dream, car for
the common man, seen by Ratan Tata, Chairman of
Tata Group. Looking nice from the outside and
promising to provide better from inside, the Tata
Nano features are all set to change the modern face
of the Indian automobile Industry.

SO WHAT HAVE WE LEARNT?

1. OFFER VALUE AS PER CUSTOMER EXPECTATIONS

2. DIFFERNTIATE VALUE THAN COMPETITION

3. OFFER NEW VALUES

EXERCISE!!
1. WHAT ARE THE VALUES OFFERED BY YOUR BUSINESS?

2. HOW YOU FARE BETTER THAN YOUR COMPETITORS IN
VALUE YOU OFFER?

HOW THE VALUE YOU OFFER IS DIFFERENT FROM OTHERS
(COMPETITORS)?
VALUE CREATION AND DIFFERENTIATION:

CASE
OF INDIAN RAILWAYS

MUMBAI PUNE INTERCITY EXPRESS
Expressindia Cities Story

Shatabdi sulks as Expressway edges it out
Express News Service

Pune on the inaugural run of the Shatabdi Express a few years ago, amidst celebrations, it was to
herald a new status symbol for the upper crust Pune-Mumbai travellers promising to overpower
the agonising road travel on the Pune-Mumbai NH4 and avoiding the inconvenience of air travel.
The entirely air-conditioned Pune-Mumbai Shatabdi Express, the plush inter-city superfast
day train was aimed at tapping professionals, high profile executives,

Jinxed from the very beginning, the highly priced Shatabdi, could not garner enough
patrons Also, it apparently hampered some of the morning local train timings in Mumbai.
.. Subsequently instead of leaving Pune in the morning and returning in the evening, it
leaves Mumbai in the morning and arrives in Pune in the evening. The logic of this
reversed role, was that, thanks to Pune being ear-marked as a potential Information
Technology (IT) centre, many Mumbai professionals would be interested in visiting Pune
for official work during the day and it would be also convenient for the race-goers during
the Pune racing season.

However, its ultimate road to disaster seems to be the Pune-Mumbai Expressway, which
was built at super speed and is now superseding the Shatabdi Express in terms of quick
travel and time convenience. Several professionals and businessmen from both the cities
have clearly disbanded the idea of travelling by this train for that matter, ever since the
entire 92 km stretch has been opened to the public. Convenience they say, has come to the
doorstep, since they do not have to abide by train arrival and departure timings
July 8, 2002
While other Pune-Mumbai trains have not faced the adverse fall-out after the birth of the
expressway, it is the Shatabdi that has had to bear the maximum impact since the
passenger profile comprised those who had the luxury of a personal car but could not
steer it out, due to inconvenient road journey. Now, it is a mere two and a half to three hours
of grand and smooth sailing journey between the two cities by road.

No wonder, the expressway has overpowered the Shatabdi as regards timings as well as
convenience. Looks like, the alarming rate of mishaps and lately even organised robberies on
the expressway have not proved to be deterrent for the commuters.

With the Shatabdi going just 30 per cent full since the last few months, the railway
authorities have been compelled to salvage this white elephant, by making it more economically
viable Railway authorities have been reported to have stated that it should be converted into a
Janshatabdi like the Deccan Queen with AC chair cars as well as second class
compartments. However, experts feel, it will become viable if the origin of journey is again
reversed, that is, the train should leave Pune in the morning and come back in the evening, since
the passenger traffic towards Mumbai is still very high in the mornings and not vice versa.

Railway authorities are also contemplating extending the train upto Solapur. However, experts
say that, Solapur is mere administrative convenience since Solapur division falls under the
central railways, and not passenger convenience
QUESTIONS

1. IN WHAT RESPECT THE SHATABDI WAS BETTER THAN ROAD TRAVEL IN THE
BEGINNING?

2. WHAT WERE THE PROBLEMS FACING MUMBAI PUNE SHATBDI TRAIN AFTER
NEW EXRESSWAY?

3. WHERE IT WAS FAILING TO OFFER VALUE AS COMPARED TO ROAD SERVICES

4. WHAT SHOULD BE DONE TO MAKE THIS SERVICE A SUCCESS/WHAT SHOULD BE THE
NEW VALUE OFFERINGS
MUMBAI PUNE SHATABDI: MISPLACED VALUE
PROPOSITON
1. INADEQUATE AVAILABILITY OF BERTH/SEAT

2. LAST MINUTE CONFIRMATION

3. HIGH COST OF TRAVEL

4. POOR FLEXIBILITY OF BOARDING/DESTINATION

5. TIMINGS OF SERVICES/LIMITED SERVICES

6. HIGHER TOTAL TRANSIT TIME

0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
COMFORT
ON JOURNEY
MEALS/ENTERTAINMENT
SAFETY
AVAILABILITY COST
JOURNEY TIME
FLEXIBILITY OF BOARDING
SHATABDI
COOL CABS
THE VALUE RADAR
ROAD PICKUP POINTS
TRAIN STATION
Good news for Shatabdi commuters

TNN Mar 4, 2004, 01.47am IST

PUNE: Commuters have welcomed the Central Railway (CR) decision to introduce the
Mumbai-Pune superfast intercity express in place of the Mumbai-Pune Shatabdi
express.

Started in 1995, the Shatabdi had seen a very low passenger response due to its steep
fares. The fares for the new train will be substantially lower.

The Mumbai-Pune superfast intercity express will have 12 coaches, including nine
second-class coaches and an AC chair car. The service will commence March 15 and
the timings of the train will remain the same from Pune to Mumbai at 6 pm and
from Mumbai to Pune at 6.50 am.

CR spokesman Suhas Lohakare said the decision was taken because of the low
passenger response to the earlier air-conditioned train. "The train will be convenient
for commuters as the journey will take only around three-and-a half hours," he said.

Code Station Distance Arr Time Dep Time Day of Arrival State
CSTM Mumbai 0 Kilometers - 06:45 Daily Maharashtra
DR Dadar (Central) 9 Kilometers 06:56 06:58 Daily Maharashtra
TNA Thane 34 Kilometers 07:15 07:17 Daily Maharashtra
LNL Lonavala 128 Kilometers 08:50 08:52 Daily Maharashtra
PUNE Pune Junction 192 Kilometers 09:52 - Daily Maharashtra
THE VALUE RADAR

0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
COMFORT
ON JOURNEY
MEALS/ENTERTAINMENT
SAFETY
AVAILABILITY COST
JOURNEY TIME
FLEXIBILITY OF BOARDING
SHATABDI
COOL CABS
INTERCITY
THE VALUE CURVE
0
1
2
3
4
5
6
AIR INDIA
JET AIRWAYS
INDIGO
THE VALUE RADAR
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
SAFETY
IN-FLIGHT SERVICES
CUISINE
GROUND SERVICES
ENTERTAINMENT
COST
PUNCTUALITY
AVAILABILITY
DESTINATIONS
AIR INDIA
JET AIRWAYS
INDIGO
Vision , Mission,, Values &
Strategic Initiatives
Job Description
Professional Dev.
Individual
Mission, Initiatives
Policies, Procedures,
Division/ Unit /Department
Values ,Mission, Vision and
Policies, Strategic Initiatives

Mobilizing Resources to Produce Competitive Advantage
Competitive
Advantage
Strategic Assets and
Market Achievements
Core and Distinctive
Competencies
Competitive Capabilities
Resources
ROUTES TO COMPETITIVE
ADVANTAGE
!
OPERATIONAL
EXCELLENCE
STAKEHOLDER VALUE
ENHANCEMENT
NEW PRODUCT
DEVELOPMENT
ORGANIZATIONAL
CAPABILITY
MISSION
IMPOSSIBLE
SOLVING
HOLONOMIC DUALS
WASTE INTO
WEALTH
INTER-LOCKING DESIGN OF
EXPERIMENTS
ACCELERATED
RADICAL CHANGE
NEW PRODUCT
DEVELOPMENT
GENERATING
AESTHETIC
RESPONSE
BEING
DIFFERENT
TRAINING IN
CREATIVITY
TECHNIQUES
LARGE SCALE
INTERACTIVE
PROCESS
ENCOURAGING
DISSENT
TOLERATING
AMBIGUITY
UNNAYAN NEW PROCESS
DEVELOPMENT
BIO MIMECTICS

SUSTAINABILITY

SYNERGIZING ACCELERATED
LEARNING

LEARNING
ORGANIZATION
KNOWLEDGE
EXCHANGE
INTERDISCIPLINA
RITY
SYNCHRONICITY SUCCESS MODE
IMPACT
ENHANCEMENT
CREATING
SYNERGY

ENERGIZING TALENT
RECOGNITION
COACHING
TALENT
ENHANCEMENTME
NTORING

SUGGESTION
SCHEME
ENCOURAGE
DIVERSITY
BRAIN-STORMING KAIZEN

SGA

QUALITY CIRCLES
OPTIMIZING
RESOURCE
RATIONALITY
CYCLE TIME
REDUCTION

COST REDUCTION ELIMINATING
WASTE
S.M.E.D

S.M.E.J

S.M.E.T
JIT

KANBAN

TAKT TIME
TAGUCHI LOSS
FUNCTION
ALIGNING
DOING RIGHT
THINGS
PROCESS MAPPING INTERNAL
CUSTOMER
SATISFACTION
VALUE STREAM
MAPPING
PARETO
PRINCIPLE
DOUBLE A
DOUBLE C
TOC PDCA PUBLIC SELF
ASSESMENT
DOING THINGS
RIGHT
MICRO PROCESS
RELIABILITY
ENHANCEMENTS
PROCESS
CHECKLIST
POKE-YOKE
ERROR
DETECTION
ERROR
CORRECTION
PERSONAL
CHECKLIST

VISUAL
CHECKLIST

CALENDAR FOR
IMPORTANT
EVENTS
6 S 6
ROAD MAP FOR WORLD CLASS ORGANIZATIONS
VISION OF MY COMPANY
SOCIAL /ECONOMIC /SUSTAINABILITY
CONTRIBUTION
1
2
3
4
5
111111
GROWTH /BRAND /KNOWLEDGE GOALS
1
2
3
4
5
11
OPERATIONAL /MARGIN /PROFIT TARGETS
1
2
3
4
5

ECO SYSTEM /ORGANIZATIONAL
DEVELOPMENT
1
2
3
4
5
Thank You

Customer engagement
Data information Knowledge
insight wisdom

THE WORLD IS FLAT FOR ONLINE
MARKETS

Insights Defined

Insights are short statements based on a deep understanding of
consumer attitudes and beliefs.
Insights are unknown or overlooked knowledge about consumer
behaviour and attitudes.
Good insights are short statements that reflect a deep and clear
understanding about consumers using words that a consumer
would use.
A great insight is a deep discovery about our consumer that can
be leveraged to change behaviour or to grow a business.
Good insights help to establish a connection between brands and
consumers in fresh new ways.
A great insight often gets the reaction - thank goodness, somebody
finally understands me.

How Do I Get Insights?

1. Know what you are looking for understand and be clear what insights are and what they are not. Use and agree on good examples with support
from market research professionals.
2. Define the focus for "insight mining" decide what you are looking for and agree the areas of strategic interest and focus e.g. attitudes of 18-34
year olds to sun protection when they are on their beach holiday.
3. Get help from market research professionals this doesnt mean that you cant look for insights yourself, but use professionals to guide and help
you.
4. Use different tools there are many ways to find new insights. For example, consumer observation in homes, accompanied shopping trips, focus
group observations, one-on-one meetings, reading relevant consumer magazines, visiting on-line chat rooms, talking to trend experts, talking to
category experts, re-reading market research reports with fresh eyes etc.
5. Get closer to your consumers meet them and get close to your target audience; observe and understand the choices that they are making and
not making. Try not to hide behind focus group mirrors!
6. Read between the lines you are probably sitting on lots of insights from old market research reports. Read them again and read between the
lines and ask why why why? Challenge and come up with your own theories that you can then test and explore.
7. Look below the surface avoid taking the first answer your hear from a consumer as gospel. There are often big differences between what people
say and what they actually do. Try and dig deeper and understand why a consumer makes the choices they do.
8. Explore the differences look for differences and contradictions between one research report and another. Explore differences between different
consumer behaviors. Have a challenging and questioning mind on your insight journey.
9. Look for quantity once you get started, brainstorm potential new insights in a specific area and dont judge your efforts too quicklyour
experience indicates that you need to generate and write 20 potential insights to produce 2 or 3 that are really meaningful.
10. Keep discovering finding insights doesnt stop, so keep looking. Have a regular program in place to find new insights and give yourself time at
the start of the innovation cycle to do this work. Consider using on-line tools to help your team capture and database new insights on a regular basis.

Strategy development

Discovering core competence
Understanding Ecosystem
Evaluating competitive advantage
Goals
Strategic Intent
TOC
Alternatives
Choice
Roadmap
Channelizing strategy


Helping participants to discovering the core
competence their organization and themselves
Deepen understanding of business ecosystem
Goals
Strategic Intent
Familiarize participants with TOC
Participants to develop Alternatives
Making rational Choice
Creating Roadmap

VISION

VF Limited has acquired core competence in design and manufacture of engineering products like industrial valves and automotive
components. VF is the front end of an fully integrated value chain from mines to finished products. VF will use its unique presence in all segments of
the value chain to offer better and better products at competitive costs to its customers . VFs has developed competitive advantage in
manufacturing especially in the areas of precision machining and casting in ferrous and non ferrous materials like steel and aluminum alloys. VF will
continuously improve its competitive advantage to exploit the emerging opportunities in the areas of valve related products and automotive
components.
The evolutionary path of automotive products from VF will follow a product platform architecture from Cylinder heads ,Cylinder blocks , to
internal combustion engines , onto vehicles like tractors ,mining ,construction equipment and battery operated vehicles and aerospace and aircraft
components and subassemblies.

Tomorrows cars ,trucks ,tractors and all automotive vehicle will have one thing in common VF INSIDE. There will be a VF component in all
automobiles.
VF will aim to move up the value chain by building state of the art valves and valve based oil and gas equipment using latest developments in
material sciences and manufacturing processes . VF aims to become a leader in a valve technology through research and developments in the
contributing technologies. VF has developed strong relationships with its customers by anticipating customer needs and exceeding them.. VF will
leverage its extensive relationships with its customers to valve related products to newer products like seamless pipes, flanges, fasteners actuators
,pumps and services like EPC contracts ,maintenance of process equipments and as stockists of valve related equipment. This will offer single
window solution to the customer creating opportunity for the customer to reduce transaction costs of dealing with multiple vendors. It will improve
the competitive position of VF dramatically.

VF will provide engineering solutions for non conventional energy equipment , this will be based on its design and manufacturing capabilities. The
various capabilities developed by VF in executing its operations and projects will be made available to industry and organizations these will include
Marketing ,HR and Financial services.

Aim to enhance valuation of VF by becoming a technology leader in the segments it operates .
MISSION
CONSOLIDATION, EXPANSION ,
GROWTH AND ENHANCEMENT OF
VALUATIONS.
VF IS WORKING SIMULTANEOUSLY CONSOLIDATING
,EXPANDING CURRENT BUSINESS AND PURSUING
GROWTH OPPORTUNITIES
Time
CONSOLIDAION EXPANSION Growth
STAGES OF GROWTH
Priority I 200 crores
By 2008-2009

Priority II 300 crores
by 2009-2010

Priority III 500 crores
by 2009-2011
Consolidating the
existing business

Expanding the existing
business

Establish New Projects
for growth

IN ORDER TO DO ALL THREE THE
FOLLOWING ACTIVITIES ARE REQUIRED ,
MY ROLE IN THESE ACTIVITIES IS
DEFINED.

TASK

S
IDEAS

CONCEPT

MARKET STUDY
BUSINESS PLAN
STRATEGY

PROJECT PLANNING

RESOURCING.

COMMISSIONING

IMPROVING THE
VALUATIONS BY
BRINGING IN THE
BEST AVAILABLE
KNOWLEDGE AND
EXPERIENCE
AND
EXPERTISE .THIS
WILL BE BASED ON
THE MODEL
OUTLINED IN WCO

c

My ROLE

DETAILING IDEAS TO
CONCEPT BY INTERACTING WITH EXPERTS
WIDE ANGLE SCANNING TO
SPOT NEW OPPORTUNITIES
ESTABLISH PLANNING AND MONITORING MECHANISM
GET DETAILED PROJECT REPORT PREPARED FROM
INTERNAL OR EXTERNAL SOURCES
ORGANISE RESOURCES FROM INDIAN AND GLOBAL
FINANCIAL SYSTEM
ENSURE TIMELY COMPLETION OF PROJECT BY
STREAMLINING PROCESSES
ORGANISE MULTI LAYER MARKET STUDY
ESTABLISH MARKET POTENTIAL
DECIDE STRATEGY FOR PROFITABLE ENTRY
OPERATIONS PLANNING
OPERATIONS MANAGEMENT
ORGANISE DETAILED OPERATIONAL PLANNING
BASED ON SUCESSFUL MODEL AND DEVELOP
ORGANIZATIONAL COMPETANCE
ENSURE OPERATIONAL EXCELLENCE THROUGH
PEOPLE ENGAGEMENT AND BEST PRACTICES
CONSOLIDATION
Division Projected turnover for BASE
YEAR
Investment required
1
2
3
4
5
ACTIONS INITIATED FOR CONSOLIDATION
IMPLEMENTATION OF ELEMENTS OF FIRST
LEVEL WCO STARTED.
SYSTEM DEVELOPED FOR CLOSE MONITORING
OF OPERATIONS.
REGULAR REVIEW BEING DONE BY CORE
TEAM AT VF.
OPERATIONAL MANAGEMENT BEING
STRENGTHENED BY INDUCTING SUITABLE
TEAM.

Selecting
members of a
Department & a
Facilitator

Form a Quality
Circle (Q.C.) &
nominate it
with a name

Q.C. Members
should have the
basic information
regarding Quality
Circle
Classify the
Problems, such as
Technical,
Economical, Safety,
etc. & Give
preferences to
them on the basis
of their necessity

Finding the data
for the
problems from
the source &
Inputs from the
Facilitator

Identify, Define
& List out the
Problems

Select a
problem,
Analyse it &
Find out the
optimum
solution for that
problem

Presentation of
problem and
solution to the
MR

Implementing
the solution &
Benefits accrued
on
implementation
Provide the
training to the
Q.C. members
related to
different charts
used & brain
storming of Q.C.
members
ROAD MAP FOR QUALITY CIRCLE

Collect
organization chart
of the division

Identify the
various
departments in
the division

Collect the process
maps of the
Division and all the
departments

Implement a
service level
agreement
between the
service providers
and their
customers

Collect the
customer
requirements from
all the
departments with
the help of a
questionnaire.

Identify the
internal customers
of all the
departments

Give the feedback
to the customers

Conduct a review
of the
performance of
the SLA

Plan for improving
the performance
of services
provided by each
department

Prepare action
plan for each of
the customer
department
ROAD MAP FOR INTERNAL CUSTOMER SATISFACTION

Management
should motivate
employees to
give suggestions

Employees
should be
encouraged to
give suggestions
on regular basis.
Only when
employees are
motivated &
interested
management
should consider
the economic
impact of the
suggestions

Analysis of:
1)Present
Method
2)Proposed
Method
3)Advantages

Interaction
between the
suggestion
scheme
committee &
the suggestion
giver.

Classification of
Suggestions into
various
domains.

Suggestions
have to be put
to practical use

Feedback of the
new method
implemented

If there is scope
for correction,
the method
should be
corrected.
Cost
calculation to
be done by the
suggestion
scheme
committee and
accounts
department
ROAD MAP FOR SUGGESTION SCHEME
Organize the
program
committee
consisting of
HODs

Marketing of
5 s

Develop a
plan for each
S activity.

Implementation
Team consists of a
group of Members
from each Dept.

Audit
{HODs+
Members}

Provide training
and education
to team
Member.

Allotment of
days for
execution of
each S
Taking 5S
movement to
the Grass-
root level
Review
Meeting with
the team
members
every day

Perform Self-
Examination
and Take
Corrective
Actions.

Evaluate the
results of 5S.

ROAD MAP OF 5 S
MISSION
IMPOSSIBLE
New Process
Development
Waste Into Wealth Inter-locking Design of Experiments Radical Change New Product
Development
New
Organization
Development
9
BEING
DIFFERENT
Suggestion Scheme Brain-storming Kaizen SGA Innovations Inter-disciplinary
Team
Solving
Holonomic Duals
LEARING
FROM OTHERS
Q.C
D.F.M
Bench Marking Safety Environment Training Learning Techniques Accelerated
Learning
DOING THINGS
BETTER
Cycle Time Reduction

6 Big Losses
Equipment
Failure
Setup & Adjustment Time
Idling & Minor Stoppages
Reduced speed
Defects in Process
Reduced yield from Start up
Eliminating Wasteful
Activity
Optimization Cost Reduction Energy Saving S.M.E.D

S.M.E.J

S.M.E.T
Technique of
Industrial
Engineering

JIT

KANBAN

TAKT Times

Line Balancing
Taguchi Loss
Function
DOING RIGHT
THINGS
Process Mapping Internal Customer
Satisfaction
Value Stream
Mapping
Pareto Principle
Double A
Double C
TOC PDCA
DOING THINGS
RIGHT
6 S Personal Checklist Process
Checklist
Poke-Yoke
Error Detection
Error Correction
Micro Process
Reliability
Enhancements
Visual Checklist Calendar For
Important
Events
6
WCO
EXPANSION

THE MOMENTUM GAINED BY CONSOLIDATION WILL BE CARRIED FORWARD BY
PLANNING FOR EXPANSION IN ALL DIVISIONS SO AS TO CAPITALIZE ON THE EXISTING
ENERGY LEVELS IN NEXT THREE YEARS .
AN AMBITIOUS BUT ACHIEVABLE TARGET OF RS ------ CRORES IS BEING PLANNED THE
DIVISION WISE BREAK UP WHICH IS AS FOLLOWS, THIS WILL REQUIRE AN INVESTMENT
OF 44 CRORES WHICH WILL BE SPREAD OVER THREE YEARS.
THE EXPANSION IS GOING TO BE DRIVEN BY TECHNOLOGY DEVELOPMENT BY VF AND
ORGANIZING MANUFACTURE BY VENDORS AND SUBCONTRACTORS.

EXPANSION

Capacity increase in auto machining division.
Utilizing full capacity of bvd.
Improving product mix in bvd.
Develop products in the area of pressure regulation and fire control in bvd.
Alloy wheels in afd.
Cylinder head manufacture in afd.
Focus on providing additional ancillary services, such as valve
maintenance and repair.
New intelligent monitoring technology .
Design and manufacture hig pressure class valves , we are working on jv
with technology providers.
Outsourcing of low value components to vendors developed in chennai
and nagpur.
Develop alternate sources for steel castings

BUILD A BRAND
WEBSITE
CD PRESENTATION
CATALOGUES
ADVERTISEMENT
EXHIBITIONS
PARTICIPATION IN CONFERENCES

INDUSTRY SEGMENT FOR EXPANSION
POWER
FERTILIZERS
CHEMICAL
PAPER AND PULP
PHARMA
CO-GENERATION
SUGAR
FOOD & BEVERAGES
NUCLEAR POWER
INITIATIVES FOR INCREASING VALUATION
OPERATIONAL EXCELLENCE.
TRANSFORMATION OF VF INTO A TECHNOLOGY DRIVEN COMPANY.
JV FOR ENGINEERING DESIGN SERVICES KALSI ENGINEERING A LEADING DESIGN FIRM IN THE AREA OF
VALVES.
ACQUISITION IN CHINA.
SIGNED NDA,S WITH COMPANIES MANUFACTURING BATTERY OPERATED
SIGNED NDA,S WITH WIND MILL MANUFACTURING COMPANY.
JV METSO OF FINLAND.
HR SERVICES COMPANY DISSCUSSIONS ON WITH NOBLE MANHATTAN OF UK.
MARKETING SERVICES COMPANY.
FINANCIAL SERVICES COMPANY DISSCUSSIONS ON WITH ACCELERATOR AND PARTER GROUP.
SETTING UP OF NON CONVENTIONAL ENERGY SEZ
MAHARASTRA CENTRE OF UNIVERSITY OF PETROLEUM ENERGY STUDIES.
FILING OF PATENTS FOR IDEAS AND TECHNOLOGIES BEING DEVELOPED.
STRUCTURED SYSTEM FOR NEW PRODUCT DEVELOPMENT .
CONTINUOUOS INNOVATION
WCO

IDEAS TO IPO
THINKING
IDEAS
CONCEPT
MARKET STUDY
STRATEGY.
BUSINESS PLAN.
RESOURCING.
PROJECT PLANNING
EXECUTION
COMMISSIONING
GENERATING PROFITS
IMPROVING PERFORMANCE
VF Business Strategy

D
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S
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I
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V
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M
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I

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M
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I
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F
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A
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A
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T
O
M
O
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E

S
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S
E
M
B
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MAIN PILLARS
A
U
T
O
M
O
T
I
V
E

C
O
M
P
O
N
E
N
T
S

A
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NEW PRODUCT DEVELOPMENT
Ideas having potential for
commercialization.
1 New design of internal combustion engine , if successful will
have huge potential market.
2.Development of multi port LPG valves which will reduce
requirements of gas cylinders.
3.New design of electric motor which will offer faster
acceleration for same size of motor for battery operated
vehicle.
4.Off shore wind mills that will always have access to maximum
wind velocity through out the year.
5.Valves designed for optimum fluid flow , these valves can
reduce energy consumption end user industry by 1%.
6.A new design of generator which will run without a crankshaft
an conventional rotary generator set.

Dding activiyies
Audit sales process
Value adding activities
Locus of value

Share of routine activities

Permanent questions for Business
Inescapability of change
Helping participants to discovering the core competence their
organization and themselves
Deepen understanding of business and industry ecosystem
Goals and Strategic Intent
Familiarize participants with TOC for delta income and delta
expenditure
Participants to develop Alternatives
Making rational Choice
Creating Roadmap

Developmental Experience
The Self The New Situation
Developmental Experience
The Self The New Situation
No Challenge
Challenge Too Great
A certain amount of challenge is crucial to
development. Too little challenge and there
is no growth. Too much challenge and the
individual may revert to what they know
well and will subsequently derail.
Assessment ~ Challenge ~ Support
SUPPORT
A developmental
experience with
lasting impact
Data concerning
the individual and
their context
Information
affirming the
individual and their
actions
The process of
developing and
gaining knowledge,
skills, and abilities to
meet the new
challenges.
A unique value proposition compared to competitors - While this may sound trivial, it really isnt. Many businesses simply try to be better than
their competition, which typically results in products and services that are similar in nature. In consequence, differentiation strategies tend to be
built on price alone. What really counts is to be different!

A distinctive value chain embodying choices about how the organization will operate differently to deliver on its value proposition To illustrate
this point, he mentioned Nespresso as a good example: Nespresso's strategy is to offer uniquely high quality, easy-to-prepare single-serve espresso
coffee at a premium price. It appeals to a consumers that want to feel good and special about themselves and intentionally discriminates
convenience-sensitive consumers. Nespresso sets itself apart from other coffee brands along the entire value chain: From the large variety of
available flavors to the use of individual proportioned capsules which are tailored to espresso machines manufactured by high-end machine vendors
to the choice of sales channels: Capsules are sold only online or through exclusive boutique shops in major cities. Focused image-oriented media
advertising completes the harmonious concept.

Making clear tradeoffs, and choosing what not to do Trade-offs occur when activities are incompatible because more of one thing necessitates
less of another thing. Tradeoffs create the need to make a choice and are necessary to make a strategy sustainable against imitation by established
rivals. IKEA provides a good examples of how making a clear choice and sticking with it can lead to success. For more than 60 years, the Swedish
company serves customers who are happy to trade off service for cost. While they get furniture at a low price, they cannot customize designs, need
to find the items they want to purchase themselves in large on-site warehouses, and need to assemble the furniture themselves.

Activity choices across the value chain that fit together and reinforce each other Porter argues that competitive advantage and sustainability
does not grow out of a single activity, rather it is the result of an entire system of activities. All activities along the value chain need to be consistent
and reinforce each other to lead to optimal outcomes. Fit is leveraging what is different to be more different, he says.

Continuity of strategic direction Strategic continuity is essential to creating and sustaining competitive advantage. Important prerequisites for
achieving continuity are the understanding of the strategy throughout the organization, the development of truly unique skills and assets related to
the strategy, and the establishing of a clear identity with customers and other stakeholders. Reinvention and frequent shifts in direction are costly
and confuse the customer, the industry, and the organization, Porter is convinced. Instead, he advises businesses to maintain continuity in the
value proposition, but continuously improve how to realize it. - See more at: http://www.solyp.com/en/news-and-alerts/blog/item/691-what-
makes-a-strategy-successful-porter.html#sthash.whF1s4Ni.dpuf

MOTIVATIONAL SONGS
1.Kisi ki mushkarahoto ho nishar( Anadi)
2. Khud jiye to kya jiye ,tu jee ei jamane ke liye
3. Ye mere pyare vatan( Kabuliwala)
4.Jab koi bat bigad jaye , jab koi mushkil par jai
5.Chodo kal ki baten kal ki bat purani (Son of
India)
6.Ruk Jana Nahin ( Imitihan)
7.Jindi ek safar hai suhana ( Andaz)
8.Chal Akela Chal Akela( Mela)1
MOTIVATIONAL SONGS
10. Allah ke bande (Waisa Bhi Hota Hai part II):
9. Yahan ke hum Sikandar (Jo Jeeta Wohi
Sikandar):
8. Roobaroo (Rang De Basanti):
7. Aashayein (Iqbal):
6. Ek din bik jayega (Dharam Karam):
5. Dil na umeed to nahi (1942 A Love Story):
4. Aao twist karein (Bhoot Bangla):
3. Ruk jana nahin (Imtihaan):
2. Zindagi ek safar (Andaz):
1. Gadi bula rahi hai (Dost):
How to Plot your value network

Identify the position of your product, service or idea in the network;

Identify where value is created
plot the value-creating relationships between the members by linking them
look at your relationships with your suppliers, partners and customers; your
partners relationships; your customers relationships;

Identify all kinds of value: from commercial relationships to exchanges of
knowledge and information, support, feedback, favours, etc.

VALUE PROPOSITION
Provide Framework - Companies are able to describe the potential impact of their product or
solution within a customer environment. An easy way to think of this is to ask yourself, 'What is the
direct revenue enhancing, cost reducing, and strategic business benefits associated with your
offering?' Providing customers with a business value framework is an effective way to capture
attention and interest in moving to the next level.
Predict Value - Your sales organization works with the customer to model the potential business
impact and return on investment (ROI). This vastly reduces decision making time and helps
generate a budget. With a compelling ROI, how can a competent decision maker not purchase from
you knowing they are leaving money on the table?
Deliver Value - Measure the previously forecasted business impact, identify where value is missing,
and swiftly take corrective action. This is a powerful way to build customer loyalty and drive
associated services and add-on sales opportunities.
Share Value - Enter into shared risk, reward and gain arrangements. Most companies ultimately
want to do business at this level when they are confident of the value being delivered to their
customers, and want to maximize the amount of money earned from any client. However, you can
think of these levels as 'stairs.' Take one step at a time when evolving your business value
proposition, and dont jump ahead until youve successfully mastered the previous levels.

Flipkart which made online shopping popular
in the country by letting customers pay in cash
when they received in hand goods ordered
online
choose my company, and we will meet your
needs, solve your problem, or get you results
in ways x y and z.
The word value refers to the intrinsic value
your product or service offers to a specific
market segment.
VP is a persuasive argument for why your
product or service is a must-have.

Components of Value Proposition
Market
Value propositions that relate to the organisations market or competitive situation, new product or
service introduction as well as the organisations marketing efforts such as awareness, public
relations or image.
Income
Value proposition that proposes to increase or sustain existing revenue. In addition new revenue
streams fall into this category.
Time
Value proposition that reduces the time it takes to achieve some organisational objective.
Institutional
Value propositions that deliver value to shareholders.
Cost
Value proposition leading to reduction in costs
Operational
Value propositions that deliver positive changes to the operational efficiency of the organisation
Risk
Value proposition that mitigates risk at a corporate, personal or project level
Having a compelling value proposition, and then successfully
delivering on that promise, is not just a 'nice to have' - it's the price
of admission.
Companies are constantly vying for decision makers' attention and
the opportunity to sell their products or solutions. Unfortunately,
once given the chance, many lose sales by failing to adequately
communicate the business value in a way that compels a decision
maker to act.
While many sales and marketing staff tend to think of their value
proposition in terms of discrete 'features,' 'functions' and 'benefits,'
business decision makers often think in a completely different way.
This means that in order to close more sales, you need to build a
'business' perspective in your value proposition.

In an increasingly competitive environment,
product managers face the challenge of
finding ways to differentiate their products
and services.
Furthermore, as markets evolve over time,
they split into multiple segments and it can be
difficult to determine which factors are of
most importance to customers.
244
Positioning Strategy Statement
Companys (product name, relevant product category)
for
(market segment/market entry customer segment)
provides
Who need (succinct description of Companys benefits/differentiator to market entry customer
segment, matched to critical need)
unlike
Competitor and Product
which
Competitors products inability to address critical need of market entry customer segment
245
Positioning Strategy Statement:
An Example
Microsofts Windows 95, the personal computer OS
for
business (or, corporate?) users
Who need to use
a variety of business SW applications to effectively perform their jobs
provides
an industry standard GUI that allows greater ease of use of major SW applications
unlike
the Mac OS
which
is not a industry standard
The process of knowledge acquisition by an organization is intertwined
with the content of organizational knowledge.
Technical systems (e.g. data base and decision rules which accumulate,
structure and codify knowledge), managerial systems (which are required
for creating (e.g. through structuring of networks) and controlling (e.g.
through incentive systems) knowledge and individual learning within an
organization are closely intertwined.
Based on this approach, it has been proposed that the theory on
resources and the theory on learning (developed in relative isolation) be
combined.
A list of propositions synthesizing both approaches has been developed

the two sources of firm heterogeneity (resources and mental models) are
interrelated" which provides a new 'conceptual lens' for what [is meant
by] 'managing' Resource-based theory can provide the resource criteria
for a sustainable competitive advantage, whereas organizational learning
theory can show precisely how learning processes to utilize resources may
be carried out.
Resource-based theory may be strengthened by adding behavioral and
cognitive decision-making biases and organizational implementation
aspects as further impediments to imitation of a firm's resources and
capabilities.

FACTORS/TRENDS
AFFECTING YOUR BUSINESS
Factors affecting Your Business

CRITICAL
SUCCESS
FACTORS
PORTFOLIO OF SKILLS CAPABILITIES GIVING COMPETITIVE
CURRENT CAPABILITIES ADVANTAGE
CORE COMPETENCE COMPETITIVE ADVANTAGE

GOALS WORTH ACHIEVING = STRATEGIC INTENTS
CREATING CUSTOMER VALUE
The world around us
Emerging Business Models
Value chain
Transformation of value creation
Linear to networked value chain
Smile curve
Locus of value
The value curve
The value radar
The world is flat for online markets
S curve and J curve

Ecosystem analysis to think about Why do this exercise?

Cooperation with other players in the industry;
How to overcome a possible weak position in a value chain through
cooperation and pooled resources with other members;
Probable consequences for your business model;
Partnerships that generate a pull effect on your customer base.

Why will this be useful?
By identifying mutually beneficial (symbiotic) transactions and relationships, a value
network approach may allow a start-up to overcome or work around barriers in the
industry value chain that might otherwise be an impediment to the firms viability.

Consequently, a value network may reveal ways that you can tap into competencies of
other value providers and increase value for all parties, rather than giving most of the
value to one powerful member of the chain.

The combination of competencies can create a compelling new business model that
will draw in more customers than the linear value chain approach.
Look at the players and the relationships:
can you identify ways to pool resources and competences with other members i.e. to
redraw relationships, or to add new partners/members or competencies- so as to
respond to customer needs in an integrated way?
Can you propose a set of inter-relationships that would create a win-win situation for
all parties in the network?
By introducing new partners and relationships, can you make the product more
appealing or more accessible to your customer (while adding value for everyone
involved)?

ECOSYSTEM ANALYSIS
Figure 4.1: Mobilizing Company Resources to Produce
Competitive
Advantage
Strategic Assets and
Market Achievements
Core and Distinctive
Competencies
Competitive Capabilities
Company Resources
needs Paying capacity Options and
alternatives

Physical Payment

Esteem Delivery

Social

Strategic Analysis
Product-oriented Analysis
Behavioral Analysis
Financial Analysis
Customer Oriented Analysis

Combining 9-Windows and SWOT
Analysis

The SWOT analysis idea is used across a wide range of technical and business areas as a means of scoping a given problem, opportunity or innovation
situation. It attempts to get the person or team involved in the analysis to look at their situation from a number of different perspectives - namely,
what are we good at, what are we not so good at, what are the things that could help us to become good, and what are the things that could stop us
from becoming good.

Combining this thinking approach with the 9-Windows offers a number of additional useful perspectives. Of particular interest in many situations are
the idea of repeating the SWOT analysis in the 9-Windows Future' positions and super-system' positions. With regard to the future' perspective,
the idea of re-thinking the questions on opportunities and threats can be very important because it forces the team to think about not just what they
think will happen in the future, but also what they think their competitors and the market will do. In a related manner, asking the same questions
from a super-system perspective opens the eyes of the team to other industries beyond their own.

By way of example of both, if we put ourselves in the position of a hypothetical car manufacturer struggling with the idea of developing a
commercially viable electric car then, thinking about threats' at the system level present (as a conventional SWOT analysis would), is likely to get us
to think about what other car manufacturers are doing.
This is likely to put us into a psychological inertia hole (Reference 3) that will focus our thinking onto hybrid vehicles and fuel cells. While this is
undoubtedly necessary, it is far from certain that it is sufficient. Conducting the same SWOT analysis from the perspective of the super-system ought
to point us at already viable electric transport systems like golf carts and postal delivery vans.

According to Reference 4, it is more likely that these things will evolve and improve to take over the electric car market than anything developed by
Ford or General Motors. Conducting the SWOT analysis from the future' perspective would further force the inclusion of solar energy and battery
technology evolution (and, probably as likely, evolutionary limits), and, at the future-super-system level, global warming, choking of road systems and
development of better public transport systems.
Thinking about the third interface' dimension illustrated in Figure 1, it is interesting to note that the idea of integrating the SWOT analysis into the
different hierarchical levels of interfaces' (environment, behaviour, capability, belief, identity) and seeing how the analysis changes between
different viewing perspectives (the map is not the territory' from Reference 1), is already established practice in certain forms of Neuro-Linguistic
Programming (NLP) - see Reference 5 for example.

1) Installation
2) Repairs
3) Training
4) Parts supply
5) Product adjustment
3) Training Do you need to train your customers for better use of your product? If so, do you provide this training or are you
outsourcing it? What are the trade-offs involved in this decision? How do the other activities that your company
performs influence the level of knowledge needed to operate your product?
4) Parts supply How do you provide spare parts to your customers? Do your distributors or installers store some of these parts
themselves? This choice must be consistent with the activities you perform in other parts of your value chain,
such as outbound logistics, and sales and marketing.
5) Product
adjustment
Is your product customised? What level of customisation do you provide? The activities involved in product
customisation play a central role in deciding what type of target customer you are trying to reach.
Service
Service represents the fifth and final category of primary activity in your value chain. The service category comprises those activities
geared towards maintaining the value of your product once it has been sold to the final customer.
Typical services activities include the following:
1) Installation Does your product need to be installed at the customers premises? What does the installation procedure
involve? How effective is communication between the installation team and the outbound logistics division?
2) Repairs How do you manage repair activities? Does your organisation provide repairs or does it outsource? What type of
warranty are you offering? Is this in tune with your overall strategy?
261
Critical Need
Driving the Buying Decision
Customer
Segment
Problem(s)
Customer
Buying
Decision
Strategy
Evidence
Value
Proposition
Articulation
Competitive
Differentiator(s)
Identification
Product/
Solution(s)
Positioning
Strategy
Elements
Value/Rareness/Inimitability/Organizational orientations

A strength is something a firm does well or a characteristic that
enhances its competitiveness
Valuable human assets
Valuable competencies or know-how
Valuable physical assets
Valuable organizational assets
Valuable intangible assets
Important competitive capabilities
An attribute that places a company in
a position of market advantage
Alliances or cooperative ventures with capable partners

Resource strengths and competitive capabilities are
competitive assets !
For example, each of the following may be considered weaknesses:
lack of patent protection
a weak brand name
poor reputation among customers
high cost structure
lack of access to the best natural resources
lack of access to key distribution channels
lack of marketing expertise
undifferentiated products and service (i.e. in relation to your competitors)
location of your business
poor quality goods or services
damaged reputation

Opportunities:
Our business sector is expanding, with many future opportunities for success
Our local council wants to encourage local businesses with work where possible
Our competitors may be slow to adopt new technologies

Threats:
Will developments in technology change this market beyond our ability to adapt?
A small change in focus of a large competitor might wipe out any market position we achieve

The consultancy might therefore decide to specialize in rapid response, good value services to local
businesses. Marketing would be in selected local publications, to get the greatest possible market
presence for a set advertising budget. The consultancy should keep up-to-date with changes in
technology where possible.

Values offered Quality of education
Practical/field assignments
Location (metro/non-metro)
Course offering - Full time/part time
Infrastructure/hostel/class rooms/library/computing facilities
Guest lectures/ Placement facilities
Research environment
Differentiation Developing expertise/focus on software
Specializing in a particular field of management
Different Good field exposure/ industry exposure
Interactive courses/ other colleges/foreign exchange
programmes
Distance learning programs

BUSINESS SCHOOLS: VALUE OFFERINGS
Rank

Reputation

Success of
Placement

Quality of
Placement

Infra
Structure

Faculty

Teaching
Meth

Spec

Adm. Eligi

1

85

90

90

78

86

80

68

44

2

78

79

80

73

80

76

59

53

3

83

84

87

77

85

82

68

50

4

74

80

83

69

79

74

62

41

5

65

69

66

66

68

67

59

39

6

74

76

78

72

75

77

64

49

7

77

79

79

71

78

76

58

52

8

58

65

59

54

61

56

49

39

9

70

77

82

74

84

80

62

44

10

49

51

53

53

55

50

48

28

Which Customers?
Consumer markets can be segmented by:
Demographics
Geography
Psychographics
Behavioral
Sociocultural
Hybrids of the above
B2B markets by:
Type of business (manufacturer, retailer, wholesaler,
service provider)
SIC / NAICS Code
Size of Business
Financial Strength
Number of Employees
Location
Structure
Sales Level

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