Stephanie Bedard

Zoraya Ghanem-Zo

Filipe Alves

Lazaros Rinakis

Henry Sichel

Capabilities

Resources

Competitive

strategy

Competitive

advantage Consumer

responses Financial

outcomes

Experiencial Partners and distributorships (eg. Pharmaceuticals industry

and Fertin)

Physical

Strong presence in Western Europe (4 subsidiaries)

Global network of suppliers, subsidiaries, agents, licensees

Financial

Increasing net capital (past 5 years)

Experiencial

Phisical

Financial

Relationship building

Partners and distributorships

Contacts in the market

○ Boomer example

Product development

Strong R&D

Advanced technology

Coating of dragées

Product development

Relationship building

International

Western Europe

Improving production efficiency

Marketing differentiation, acting

on the Product

Marketing differentiation

Cost advantage

• Cost of raw materials;

• Production costs per unit

Product differentiation

• Quality;

• Taste;

• Brand identification

• Quality;

• Brand identification

Product differentiation

(Work in progress)

International

Western Europe

Fertin

Cost advantage

Product differentiation

Product differentiation (work in progress)

Capabilities

Resources

Competitive

strategy

Competitive

advantage Consumer

responses Financial

outcomes

Industry Globalization

Potential

Market Drivers

Cost Drivers Government

Drivers

Competitive Drivers

1999 World Market Competitors (Dandy, November 2001)

Wrigley

Warner-Lambert (Adams)

Lotte

Naisco

DANDY

Kraft Jacobs Suchard

Perfetti

JOYCO

CSM Leaf

Cadbury (Hollywood)

Others

• High skills requirement • Capital intensive

• Low skills • Labor intensive

Labor

Geographic concentration / clustering Geographic dispersion

• New, changing rapidly (biotech) • Experiential, learning by doing, “tacit” • Systemic; broad, inter-disciplinary • Inter-organizational (supplier networks)

• Mature • Codified, articulable • Discrete; parsable; narrow • Internal to the firm

Knowledge

• High transport costs per value added • Tight inter-org sequencing, delivery (JIT)

• Low transport costs per VA • Few or only loose linkages

Logistics

Development Sales Service Manufacturing Research

Market

growth

Relative

market share

High

High

Low

Low

Market

growth

Relative

market share

High

High

Low

Low

Market

growth

Relative

market share

High

High

Low

Low

CEO

Finance

Sales & Marketing

Dandy Brands

R&D

W. Europe

C. & E. Europe

International

Fertin R&D Production

Proposed Organizational Structure

Managing director

Personnel

Sales & Marketing

Dandy brands

Dandy international

Dandy confectionery

Fertin

Production

Finance

„when you cannot beat them, join them“

International

To act on the 4 P’s:

• Revitalization;

• Promotion

Marketing differentiation:

• Promotion;

• Product

• Taste

• Quality;

• Taste;

• Brand identification

• Quality

• ?

Domestic markets

Niche markets

Eastern Europe - Russia

Product differentiation

Product differentiation

Product differentiation

Markets Objective Nature To engage:

«Domestic» To defend the

market share Reaction Subsidiaries

«Niche» To protect the

niche Action Main players

Eastern Europe To invade Proaction Distributors

Capabilities

Resources

Competitive

strategy

Competitive

advantage Consumer

responses Financial

outcomes

Market

growth

Relative

market share

High

High

Low

Low

Thank you!

Gracias!

ευχαριστώ!

Obrigado!

Grazie!

… and, as we are in Austria…

Danke!