Professional Documents
Culture Documents
Part-1
The Environment
The Environment
customer
needs
Market segments
Relative market share (that is, share in relation to that of
competitors) within a market segment is an important
consideration.
Organisations that have built up most experience in
servicing a particular market segment should not only have
lower costs in so doing, but also have built relationships
which may be difficult for others to break down.
Small local product competing against the big brands on the
basis of its low prices underpinned by low costs of
distribution and marketing is confined to that segment of
the local market that values low price.
Identifying the strategic
customer
The strategic customer is the person(s) at whom the strategy is
primarily addressed because they have the most influence over
which goods or services are purchased.
The requirements of the other customers are not unimportant
they have to be met but the requirements of the strategic
customer are paramount.
It should be clear that for many consumer goods the retail outlet is
the strategic customer as the way it displays, promotes and
supports products in store is hugely influential on the final
consumer preferences
Family doctors are the strategic customers of pharmaceutical
companies and so on.
Understanding what customers
value critical success factors
customers will value many product/service features to a greater
or lesser degree.
Critical success factors (CSFs) are those product features that
are particularly valued by a group of customers and, therefore,
where the organisation must excel to outperform competition.
The extent to which the offerings of different providers address
the factors valued by customers can be visualized by creating a
strategy canvas
The canvas is a simple but useful way of comparing
competitors positions in a market and potential in different
segments.
strategy canvas