Blue ocean at henkel - business strategy
-
Upload
christian-tobing -
Category
Education
-
view
511 -
download
1
Transcript of Blue ocean at henkel - business strategy
Blue Ocean Strategy at Henkel
Dara Maisarah 29113135
Christian Hamonangan 29113035
Irsyad Ahmadi 29113072
Angga Ranggana 29113489
Overview
FOUNDED• By Fritz Henkel in 1876
HEADQUARTERS
• Dusseldorf, Germany
VISION• A Global Leader in Brands and Technology
BUSINESS AREA
• Laundry & Home Care
• Adhesive Technologies
• Beauty Care
PROBLEM
• Growth of market has slow down
MARKET
• raw material price increase
FINANCIAL CRISIS
• Competitor in adhesive technology decrease their price
COMPETITOR
What Henkel should do?
Create long term strategy for adhesive
technology
Analyze external environment and
internal environment
Analyze Blue
Ocean Strategy
SOLUTION
External Environment
General EnvironmentIndustry Environment
Competitor Environment
General Environment
Demographic SegmentLow birth rate
Economic SegmentGasoline and raw material has increased
Political SegmentTax incentive from East Germany Government
Sociocultural SegmentAge limit of doing DYI product just 50 yearsWomen preferred models and concrete samples
Technological SegmentUse technology for R&D product
Global SegmentReunion of East Germany and
West Germany
Physical SegmentProducing environment friendly
product
Continue
Industry Environment Threat of New Entrant
High barrier for new entrant
Bargaining Power of SupplierA few number of supplier, make supplier have strong position
Bargaining Power of BuyerIt's price sensitive
Threat of Substitute ProductA large number of product differentiation
Rivalry Among Competing of FirmsMany company in this industry try to reduce cost to give lowest price to customer
Competitor Environment
UHU
Adhesive segment for household and offices
PCI
Have strong position, market leader for tilersegment
Mapei
Acquired several local company
Internal Environment
RESOURCESTANGIBLE INTANGIBLE
Tangible Resources Valuable Rare Costly-to-imitate
Non-substitutable
Financial:1. Sales increase2. EBIT increase
Yes Yes No No
Organizational:1. Sub-brands build their own marketing
strategy2. Sales channel : do it yourself stores,
specialist shop, drugstores and food retailing shops
Yes Yes Yes Yes
Physical:1. Henkel relocated his company to
Diisseldorf by the Rhine2. Henkel took over the Adhesives and
Electronic Materials business from AkzoNobel
Yes Yes No No
Technological:1. External Thermal Insulation Composite
Systems2. Product Information
Yes No No No
Intangible Resources Valuable Rare Costly-to-imitate
Non-substitutable
Human:High frequency in Product innovation
Yes Yes Yes No
Innovation:1. Produced ‘low dust ‘ and ‘light
weight’ tile adhesive2. Adding new features to improve
the product
Yes Yes Difficult Difficult
Reputation:1. Direct contact between the
producer and client for support product enhancement, technical advise, addressing complaint and warranty support
2. Brand image
Yes Yes Yes Yes
Value Chain• Primary Activities
– Service• Installation• Repair
– Marketing and sales• Product,pricing,advertising, promotion and
distribution• Channels to market• Convenience• Communication
– Outbound logistics• Distribution expansion• Picking• Delivery• Shipment
– Operations• Packaging• Conversion• Maintenance
– Inbound logistics• Material handling• Warehousing
Value Chain
• Support Activities– Firm Infrastructure
• Finance• Accounting• General management
– Human Resource Management• Recruiting,hiring,training, developing
employee
– Technological Development• Resource and development• Process equipment• Product innovation
– Procurement • Purchasing raw material• Supplies
Strenght
- High innovation product
- Offer many product lines
- Huge distribution channel
- Each product has own marketing manager
Weakness
- Too Product Oriented
Opportunity
-German Market Saturated, enter to other countries
- Craftsmen is driven consumer’s buying decision
Threat
- High energy and raw material price
- Many competitors with low prices
Red Ocean Strategy vsBlue Ocean Strategy
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space Create uncontested market space
Beat the competition Market the competition irrelevant
Exploit existing demand Create and capture untapped demand
Make the value cost trade off Break the value cost trade off
Align the whole system of a firm’s
activities with its strategic choice of
differentiation or low cost
Align the whole system of a firm’s
activities in persuit of differentiation
and low cost
Focuses on adapting to external
trends as they occur
Participate in shaping external trends
over time
ELIMINATE
a number of sub-brands in adhesive
technology
REDUCE
harmful chemical
CREATE
eco-friendly safe product , DIY
segments easy to use for women
RAISE
the innovation of product, marketing strategy
Recommendation
Entry into developing countries to increase market share
Target market to high-end community
Product innovation (All in one)
Lesson Learned
Market demand is an important factor in
making business strategy
Action of competitors is
also a reference in determining a
strategy
To create Blue Ocean Strategy we should first
analyze external factor and
internal factor