Page 43 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes
Box 2.1: Potential Resource Strengths and Competitive Capabilities
A powerful strategy supported by competitively valuable skills and experience in key areas.
A strong financial condition; ample financial resources to grow the business.
Strong brand name, image/company reputation.
A widely recognised market leader and an attractive customer base.
Ability to take advantage of economies of scale and/or learning and experience curve effects.
Proprietary technology/superior technological skills/important patents.
Superior intellectual capital relative to key rivals.
Cost advantages.
Strong advertising and promotion.
Product innovation skills.
Proven skills in improving product processes.
Sophisticated use of e-commerce technologies and processes.
Superior skills in supply chain management.
A reputation for good customer service.
Better product quality relative to rivals.
Wide geographic coverage and/or strong global distribution capability.
Alliances/joint ventures with other firms that provide access to valuable technology, competencies,
and/or attractive geographic markets.

Box 2.2: Potential Resource Weaknesses and Competitive Deficiencies

No clear strategic direction; poor quality of leadership.
Obsolete facilities.
A weak balance sheet, burdened with too much debt.
Higher overall units costs relative to key competitors.
Lacking some key skills or competencies/lack of management depth/a deficiency of intellectual
capital relative to leading rivals.
Subpar profitability; no cost control measures or cost accounting practices
Plagued with internal operating problems; no organisational studies done, poor structure
Falling behind rivals in putting e-commerce capabilities and strategies in place
Too narrow a product line relative to rivals; inadequate R&D.
Weak brand image or reputation; no efforts to improve quality of products/image
Weaker dealer network than key rivals and/or lack of adequate global distribution capability; weak
logistics/communications.
Subpar e-commerce systems and capabilities relative to rivals.
Short on financial resources to fund promising strategic initiatives.
Lots of underutilised plant capacity.
Indifferent quality of supply chain, bought out components.
Abnormally high staff turnover; inability to retain key personnel indicates weak HR policies,
incentives and stability.
Behind on product quality and/or technological know-how.
Not attracting new customers as rapidly as rivals due to ho-hum product abilities.

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