ValueMathics MARKET ENTRY MODE. Matchmaking Matchmaking is reflected in the market mode. This is the...
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Transcript of ValueMathics MARKET ENTRY MODE. Matchmaking Matchmaking is reflected in the market mode. This is the...
ValueMathicsMARKET ENTRY MODE
Matchmaking
• Matchmaking is reflected in the market mode. This is the way in which a company uses its strongest value activities (TPLMS) to enter a market and leave other value activities to the trade channel.
• These strong value activities -competitive advantages- are the green areas in the SWAT
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+SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.
+MARKETING - Marketing/ sales management, promotional activities, customer retention, relation mgmt.
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LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)
+++PRODUCTION - Manpower, machines, buildings, processes, internal routing
+TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,
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+SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.
+MARKETING - Marketing/ sales management, promotional activities, customer retention, relation mgmt.
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LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)
+++PRODUCTION - Manpower, machines, buildings, processes, internal routing
+TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,
SUBC
ON
TRA
CT
, C
UST
OM
MN
F FO
B, K
PO
LICEN
SIE M
AN
UFA
CTU
RIN
G
PRIV
ATE LA
BEL, SO
UR
CIN
G, IP/O
C
FULL V
ALU
E, BR
AN
D
JOBBIN
G, BPO
C
MTP / M
AQ
UILA
MARKET MODES
SUBC
ON
TRA
CT
, C
UST
OM
MN
F FO
B, K
PO
LICEN
SIE M
AN
UFA
CTU
RIN
G
PRIV
ATE LA
BEL, SO
UR
CIN
G, IP/O
C
FULL V
ALU
E, BR
AN
D
JOBBIN
G, BPO
C
MTP / M
AQ
UILA
MARKET MODES
• analysis. The red areas need to be taken care of by the trade partner or need to be improved by the exporter
• Each market mode focuses one or two of the specific value activities (TPLMS) and shows, which is the best way to escape the downward price spiral and enter the high road to global markets.
PRO
DU
CT
AC
CES
S
SPEE
D
IMA
GE
SERV
ICE
TC
O
TO
TA
L
TECHNOLOGY 13 11 4 11 7 17 41
PRODUCTION 19 25 17 6 4 20 91
LOGISTICS 4 6 19 8 1 12 28
MARKETING 4 8 12 11 2 7 10
SUPPORT 5 2 13 3 17 4 18
TOTAL 37 52 23 21 31 36
CUSTOMER VALUESV
ALU
E C
HA
INSWAT
ANALYSIS
From audit to business
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+SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.
+MARKETING - Marketing/ sales management, promotional activities, customer retention, relation mgmt.
+
LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)
+++PRODUCTION - Manpower, machines, buildings, processes, internal routing
+TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,
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+SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.
+MARKETING - Marketing/ sales management, promotional activities, customer retention, relation mgmt.
+
LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)
+++PRODUCTION - Manpower, machines, buildings, processes, internal routing
+TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,
SUBC
ON
TRA
CT
, C
UST
OM
MN
F FO
B, K
PO
LICEN
SIE M
AN
UFA
CTU
RIN
G
PRIV
ATE LA
BEL, SO
UR
CIN
G, IP/O
C
FULL V
ALU
E, BR
AN
D
JOBBIN
G, BPO
C
MTP / M
AQ
UILA
MARKET MODES
SUBC
ON
TRA
CT
, C
UST
OM
MN
F FO
B, K
PO
LICEN
SIE M
AN
UFA
CTU
RIN
G
PRIV
ATE LA
BEL, SO
UR
CIN
G, IP/O
C
FULL V
ALU
E, BR
AN
D
JOBBIN
G, BPO
C
MTP / M
AQ
UILA
MARKET MODES
CO
ST
Market Mode - who does what ?
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY
SELLER BUYER CONSUMER
CUSTOMER VALUE
VA
LUE
TECH
NO
LOGYPRODUCTION
MARKE
TIN
G
PATENT BRAND
Market Mode – how to upgrade ?
Market entry modeFRESH PRODUCE
OutgrowingContract farming
VarietyBrand/variety
GARMENTSCMT/Maquila
FOBSourcing
Brand/design
INDUSTRIALJobbing
SubcontractingLicensing
Private labelBrand
SERVICESBPO/call centre
KPO/ITO/EngIP/own content
Brand
TOURISMTravel agencyTour handler
Tour op/packageBrand consolidator
PRE-HARVEST+++++
++++++
DESIGN++
+++++
TECHNOLOGY+
++-
+++++
TECHNOLOGY+
+++++++
PACKAGING--+
+++
POST-HARVEST++
+++++++++
PRODUCTION++++++++++++
PRODUCTION++++++++
+++++
EXECUTION++++++++++
EXECUTION++
++++++
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LOGISTICS+
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+++
LOGISTICS+
++++++
LOGISTICS+
+++++
+++
MANAGEMENT++
++++
++
MANAGEMENT+
+++++++
MARKETING--
+++++
MARKETING--+
+++
MARKETING--
++++
+++
MARKETING+++
+++
MARKETING++-+
+++
SUPPORT++
+++++
SUPPORT+
++++
+++
SUPPORT-+
++++++++
SUPPORT++++++
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SUPPORT+
+++++++
T P L M S FRESH PRODUCTS
GARMENTS APPAREL
MANUFACTURED PRODUCTS
SERVICES ITO/BPO/KPO
Contract manufacturin
gCTC CMTP, Maquila
JOBBING, TOLL CONVERSION, CKD ASSEMBLY
BUSINESS PROCESS OUTSOURCING
Sub-contracting
OUTGROWING FOBSUBCONTRACTING CUSTOM MNF. SKD, EMS
KNOWLEDGE PROCESS OUTSOURCING
License manufacturin
gGROWING
LICENSE MANUFACTURING, BOX EMS
BRAND
Private label manufacturin
gSOURCING
PRIVATE LABEL MNF. ODM
IP/OWN CONTENT
Own IP/brand UNIQUE VARIETY OWN BRAND
OWN DESIGN OWN BRAND
OWN TECHNOLOGY OWN BRAND
IP/OWN CONTENT OWN BRAND
Market ModesWe distinguish five general types of business models/ market entry modes: each model has a different amount and nature of value addition.
SELLER BUYER CONSUMER
CO
ST
1. Contract manufacturing
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY Seller concentrates on production or execution and leaves technology, design, marketing to buyer -low value adding. Typical trade partners are A-brands, companies with simple after sales requirements
CO
ST
TECHNOLOGY
PRODUCTION
1.1. CMTP/maquila
CMT CONSUMER
TECHNOLOGY
LOGISTICS
MARKETING
SUPPORT
1.2. BPO/call centre
CALL CENTRE CONSUMER
CO
ST
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY
HSBC
SELLER BUYER CONSUMER
CO
ST
2. Sub-contracting
SUPPORT
MARKETING
TECHNOLOGY
PRODUCTION
LOGISTICS
TECHNOLOGY Seller produces under specifications of buyer,sources all materials. Buyer concentates on logistics, marketing and after sales. Typical trade partners are large retail chains, T1/ OEM’s, firms with more complex after sales requirements.
SPRAYER LTD. “CHANEL” CONSUMER
CO
ST
2.1. Cosmetics - sprayers
SUPPORT
MARKETING
TECHNOLOGY
LOGISTICS
TECHNOLOGY
PRODUCTION
Tier 2 –piston manufacturer
Tier 1 – engine manufacturer
OEM – truck manufacturer
2.1. Automotive – T2
ENGINEERING FIRM KEMA CONSUMER
CO
ST
2.3. Engineering services
SUPPORT
MARKETING
TECHNOLOGY
PRODUCTION
LOGISTICS
TECHNOLOGY
SELLER LEVIS CONSUMER
CO
ST
2.4. “FOB”
SUPPORT
MARKETING
TECHNOLOGY
PRODUCTION
LOGISTICS
TECHNOLOGY
CO
ST
3. License manufacturing
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY
SELLER BUYER CONSUMER
Seller has captive (regional) markets, but lacks the technology or design capacity. Sources technology from third parties and concentrates on marketing. Typical alliances are with enineering firms, design studios, laboratories
“License and buy back” :• Buyer provides the design, drafts, formulation of product,
often trough a design studio• Buyer provides sometimes a “secret component”• Seller takes care of productionOther modes :• Seller takes care of marketing, sometimes under own
label, sometimes under licensor’s brand• Seller takes care of outgoing logistics• Suitable for regional markets, beware of marketing
restrictions from licensor
3. License manufacturing – 2 options
LICENSOR
LICENSEE
LICENSEE
LICENSEE
FREE MARKETS
BLOCKED MARKETS
3. License manufacturing
CO
ST
3.1. Food processing
SUPPORT
MARKETING
TECHNOLOGY
BOTTLER COCA COLA CONSUMER
LOGISTICS
PRODUCTION
CO
ST
4. Private label manufacturing
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
SELLER BUYER CONSUMER
Seller has a unique technology or design, production or execution facilities, but lacks/does not want to get involved in marketing after sales. Typical trade partners are retail stores, B-brands, OEM’s.
CO
ST
4.1. Automotive – car assembly
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
MAGNA STEYR CHRYSLER CONSUMER
CO
ST
4.2. Oil industry
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
SHELL CONSUMER
CO
ST
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
SELLER MORNING FRESH
CONSUMER
4.4. Food processing
A -BRAND
4.4. The supermarket shelf
HOUSE BRAND
FIGHTING BRAND
CO
ST
4.4. Accessories – sourcing
SUPPORT
LOGISTICS
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
UMBRALLA MNF. VODAFONE CONSUMER
CO
ST
5. Own IP/brand
SUPPORT
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
SELLER BUYER CONSUMER
Seller has own technology, content or design, markets its products or service under own brand through trade channels or on the web. Typical trade partners are distributors, retail, publishers-or direct sales
CO
ST
5.1. Games
SUPPORT
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
APPLE CONSUMER
CO
ST
5.2. Garments - brand
SUPPORT
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
CLEVER MODA S.A.
RETAIL CONSUMER
CO
ST
5.3. Food processing - brand
SUPPORT
MARKETING
PRODUCTION
TECHNOLOGY
LOGISTICS
BUYER CONSUMER
TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,
+ ++ + +++ +++
PRODUCTION - Manpower, machines, buildings, processes, internal routing +++ +++ ++ +++ +++
LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)
+ ++ ++ + ++
MARKETING - Marketing/sales management, promotional activities, customer retention, relation mgmt.
+ + +++ + +++
SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.
+ + +++ ++ ++
Required amount/nature of
value addition
CONTRACT
MANUFACTURI
NG
SUB CONTRACTIN
G
LICENSIE
MANUFACTURI
NG
PRIVATE
LABEL MANUFACTURI
NG
OWN IP
BRAND