...An Overview Of Service Dominant Logic Marketing Essay It is thought that the service-dominant logic view of marketing provides a valuable contribution to the dialogue about necessary and evolving change to marketing. This assignment will be evaluating the impacts on the marketing activities undertaken by firms in both strategic and relationship marketing concepts. From 18th to 19th century, there were major changes in agriculture, mining, transporting and manufacturing. Industrial revolution was the main reason for these changes which had emerged in the Western countries and then eventually influenced the world. It was led by the creation of division of labour which caused exchange, productivity and efficiency. Industrial revolution was the beginning of a shift from agriculture to manufacturing. Therefore, massive material production took its place. As the production was based on standardised goods, the marketing focus became entirely on the output. Thus, the materialistic idea became dominant which is called ‘Good-Dominant Logic' (G-D). Nevertheless, there was another milestone which has been substantially experienced by high-income countries is moving from manufacturing to service sector. It is believed that this change also has resulted in major changes in marketing approaches. As the outcome in services is not tangible, the old approach cannot fully apply in services (Shostack, 1977). Moreover, there has been a change in the aspects of goods itself. The decider and creator...
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...E-GOST TSER Contract of the European Union HPSE-CT-2002-50026 (Thematic Network) 1st workshop : April 3rd –4th, 2003 (Strasbourg) RESOURCES AND COMPETENCES PERSPECTIVES ON STRATEGY OF THE FIRM: A discussion of the central arguments F. Amesse, A. Avadikyan, P. Cohendet Introduction: In 1994, Wernerfelt received an award for the best paper of the decade in Strategic Management Review (A resource-based view of the firm, 1984). Considering the fortune of the article among practicing managers (Wernerfelt, 1995), he admitted that such a fortune had been leveraged by the 1990 article of Prahalad and Hamel in Harvard Business Review (“The Core Competence of the Corporation”). Directly addressed to people in management and strategy, this article was clearly prescriptive as to the best way to set winning strategies for the firm, especially as to diversification and the abusive use of SBUs (Strategic Business Units) in highly decentralized profit centres. “In the 1990s, top executives will be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible”. Since the 1990s, the resource based view (RBV) and the core competence approach (CCA) became very attractive for many researchers and consultants. Such interest was well supported by what seemed to be a clear and superior way of setting strategies by large Japanese groups which frequently served as a benchmark case of core competence management. The strong and pervasive trends...
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...between customers and retail organisations on value co co-creation in service delivery in the UK. A comparison between the different theoretical perspectives that characterises the co-creation literature carried out recently with those representing the field’s core has been identified. The value co-creation process has been emphasised on both online purchasing and checkouts in retail stores. The relationship between variables is described in a descriptive nature (REF). With the aid of a couple marketing management articles (from stick ref) extensive researches about suppliers and buyers analyse their activities, resources and roles in the reciprocal value co-creation process and their implications for the resulting value-in-use. Introduction The recent mind set of consciousness in customers for their rights and getting the value of their money for services received has modified their position in the value chain of production from final consumers to the centre of processes of the companies; thereby being mediators on how and what should be produced. This development has restructured the industrial marketing management (Pongsakornrungsilp and Schroeder, 2011), however, (Lindgreen et al; 2009 and moller, 2006) defined value creation as interaction between suppler and customer which is a key in business to business marketing due to the perceived value of customers. This is considered fundamental to company’s competitive advantage and central process of economic exchange (Vargo...
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...of the organisation could be argued that this will help Kodak recover, there are also many substantial problems that could occur. One major problem for Kodak is the lack of strategic management. Although there are many various ways to define strategic management, David, F.R (2009) defines strategic management as a “continuous process of strategic analysis, strategy creation, implementation and monitoring, used by organisations with the purpose to achieve and maintain a competitive advantage.” Problem Identification: All main business ideas for Kodak seem to come just from the Chief Executive Perez. Leaving a lot of the main strategic planning just up to him. Kodak has previously displayed what an organisation with the absence of strategic management can look like. Therefor Perez should examine more heavily into strategic management as Kodak is always one step behind competitors. However, Strategic management is not about predicting the future but more so about preparing for it and acknowledging the steps the organisation may have to take to make a strategic plan in order to achieve a competitive advantage (Blatstein, I.M. 2012). With...
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...final market place at less cost to the supply chain as a whole” (Christopher, 1998). Hence, SCM refers to all of the processes, technologies, and strategies that together form the basis for working with internal as well as external sources of supply. As SCM focuses on the efficient matching of supply with demand it does not help the firm to find out what the customer perceives as valuable, and how this customer-perceived value can be translated into customer value propositions. Hence, supply chain efficiency by itself will not increase customer value and satisfaction as firms also require market orientation to enhance their market responsiveness capabilities. This research works in this direction and explains how firms build competitive advantages by moving from supply chain to demand chain management approach. Moving from Supply Chain to Demand Chain Management Globalization has resulted in greater competition, and implies that markets are becoming volatile...
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...University of Hawaii at Manoa Service-dominant logic & Marketing audit report: Hanh Phat Consultancy NGUYEN Thanh Hanh – Vemba 9 Hanoi Table of Contents A. “Marketing” vs “marketing” concept and Service – dominant logic Concept Explanation ………………………………………………………………………….2 Implementation in my practical business……………………………………………………...2 B. Marketing Audit Report: Hanh Phat Consultancy Executive Summary………………………………………………………………………….. 3 Company Introduction………………………………………………………………………3-4 Mission Statement……………………………………………………………………………..4 Situation & SWOT analysis ……………………………………………………………...4-5 Customers Equity & Competition………………………………………………………….6 Portfolio Analysis using Boston Consulting Group & GE Matrixes……………………..6-7 Segmenting, Targeting, Positioning ………………………………………………………..8 Marketing Mix ……………………………………………………………………………...9 Product, Price, Place, Promotion……………………………………………………………9 Conclusion and Recommendations……………………………………………………….10-11 A. “Marketing” vs “marketing” concept and Service – dominant logic Concept Explanation In my viewpoint, the two ideas of Peter Drucker and S Vargo on marketing try to convey an important message in analysing the “Marketing” that is not only a sole activity to engage in the market with its own business strategy but also “marketing” with involving the whole business to finalize the result based on customers’ needs, wants and requirements...
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...these groups on how best to achieve this goal. Many economists, especially those currently in Washington, believe that job creation begins with increasing the demand for goods and services, the demand side, espousing remnants of Keynesian economics. However in a world of global economic competition, merely creating additional demand for goods and services does not necessarily translate into job creation in a specific venue. Increasing demand must also translate into increased capital formation, job creation and productivity in the same country or economic venue. This supply-capital formation component is missing in the attempts at economic stimulus in the United States and in many western European countries. In a competitive global economy with increased capital fluidity, capital tends to flow to venues (countries) that offer the highest risk-adjusted returns. Thus, countries around the world are competing for capital and resulting job creation in a world with heterogeneous tax structures, standards of living, levels of infrastructure development and human and natural resources. The ability to attract capital depends on these factors as well as possibly other factors, where it is not readily transparent which countries posses advantages in attracting capital. However, it is obvious that capital formation necessary for job creation depends heavily on new investment and that the supply side of economics cannot be ignored. With respect to recent demand side stimulus...
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...A means of providing corporations with an analysis of their competition and determining strategy, Porter's five-forces model looks at the strength of five distinct competitive forces, which, when taken together, determine long-term profitability and competition. Porter's work has had a greater influence on business strategy than any other theory in the last half of the twentieth century, and his more recent work may have a similar impact on global competition. Michigan native Michael Porter was born in 1947, was educated at Princeton, and earned an MBA (1971) and Ph.D. (1973) from Harvard. He was promoted to full professor at Harvard at age 34 and is currently C. Roland Christensen Professor of Business Administration at the Harvard Business School. He has published numerous books and articles, the first Interbrand Choice, Strategy and Bilateral Market Power, appearing in 1976. His best known and most widely used and referenced books are Competitive Strategy (1980) and Competitive Advantage (1985). Competitive Strategy revolutionized contemporary approaches to business strategy through application of the five-forces model. In Competitive Advantage, Porter further developed his strategy concepts to include the creation of a sustainable advantage. His other model, the value chain model, centers on product added value. Porter's work is widely read by business strategists around the world as well as business students. Any MBA student recognizes his name as one of the icons of business...
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...1. MARKETING STRATEGIES FOR GROWTH MARKETS Market Penetration _ is the measure of brand or category popularity, it is defined as the number of people who buy a specific product or brand of a category of the goods at least once in a given period and it is divided by the size of the relevant market penetration. Often managers must decide whether to seek sales growth by acquiring existing category users from their competitors or by expanding the total population of category users, attracting new customers to the market. Nando’s specialize in flame-grilled Peri-Peri chicken, it is served in quarters, halves, wholes and bufferfly breast and the price the most it is based on keeping the offering low priced to grab the maximum market share. The most obvious ways to achieve growth is by encouring existing users of the product to buy or use more of the same product, this implies a basic strategy decision, namely to get the customer to increase the frequency of use and the quantity used of the product. Promoting alternative_ Nando’s has bottled their peri-peri delicious sauces, implying that consumers can take the flavor, fire and passion of peri-peri wherever they go. And they can even purchase same of the sauces at supermarkets such as pick’n pay, checkers. Offering incentives for using products_ Nandos offer special deals from time to time of special price deals for a specific period as an incentive to its customer. Giant-sized packaging Nando’s has introduced a sauce caddy...
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...“How does the development of core competencies provide both advantages and disadvantages for an organisation? What steps can managers take to prevent core competencies becoming core rigidities?” In today’s world competition among firms becomes globalized and more intense. In order to become superiorly competitive, companies should enhance its competencies in a way that will allow them to achieve dominant position in a market. One way of accomplishing it is by development of core competencies. Competencies are considered core if they are skillfully performed and are principal to company’s strategy and its competiveness (Thompson et al, 2013). They are result of ‘collective learning’ activities (Prohalad and Hamel, 1990), a combination of unique skills, assets and routines (Teese, Pisano and Shuen, 1990), and knowledge sets, which altogether strategically differentiate company (Leonard-Barton, 1992) and by being valuable, rare, inimitable, and non-substitutable by nature they provide basis for sustainable competitive advantage (Hafeez, Zhang and Malak, 2002). To begin with, the development of core competencies provides numerous advantages for an organization. Prahalad and Hamel (1990) in their research ‘Core Competence of the Corporation’ argue that these benefits can be seen as the following: development of new core and diversified products and consequently potential ability to enter new markets. Scholars have also emphasized the importance of the effective competence building...
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...Case Study Competitive advantage at Louis Vuitton and Gucci MEMO The market of high fashion luxury goods presents US$165 billion of annual sales and gross profit margins of over 50 per cent. The leader company seems to be LVMH fashion house, with US$12billion of sales, followed by Richemont with US$3.6 billion and Gucci Group with US$2.4 billion. According to the text, the key activity of those companies is the preparation and display of new collection for their bi-annual fashion show. Analysing each activity which constitutes the value chain, I can say that: * Suppliers – the co-ordinating company has a relatively important function, since it works closely with the designer in determinant aspects (such as colours, patterns among others) of the collection’s design. The Chinese and Italy co-ordinating associated company’s which supplies and dye, spin and weave the silk, respectively,are not so important, because is the designer’s work at fashion house that creates the main value – final collection design instead of components supplied. BALANCE=LOW/MEDIUM VALUE ADDED * Inbound Logistics – there are many imports and the goods arrive at the fashion house not using an exclusive method. BALANCE=LOW VALUE ADDED * Operations – is about working on final product, which is design and manufacture of each haute couture dress. Here, the name of the designer is a crucial element, since the fact she or he is famous add a large value, but specialized seamstresses who cuts and sews...
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...AFT3073 – RESEARCH METHODOLOGY |GROUP ASSIGNMENT (25%) – RESEARCH TERM PAPER TOPICS | |Current Strategic Management Issues | |This course assignment is a term paper on current strategic management issues. Possible themes/issues for your research term paper | |include (but are not limited to) the following: | |Ethics and Corporate Citizenship Themes | |Understandings of corporate citizenship | |Links between ethics and corporate citizenship | |Performance measurement | |Accountability and governance | |Stakeholder engagement, consultation, reporting and governance | |Corporations, territory and governance ...
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...Thematic Study | 12 December 2012 17th ANNUAL WEALTH CREATION STUDY (2007-2012) Economic Moat Fountainhead of Wealth Creation HIGHLIGHTS Economic Moat protects profits and profitability of companies from competitive attack. Extended CAP (competitive advantage period) of Economic Moat Companies (EMCs) leads to superior levels of profits and stock returns. Over 2002-2012, EMCs in India have outperformed benchmark indices. Breach of Economic Moat causes massive wealth destruction. Markets seem poised to touch new highs in the next 12 months. "(Great companies to invest are like) Wonderful castles, surrounded by deep, dangerous moats where the leader inside is an honest and decent person. Preferably, the castle gets its strength from the genius inside; the moat is permanent and acts as a powerful deterrent to those considering an attack; and inside, the leader makes gold but doesn't keep it all for himself. Roughly translated, we like great companies with dominant positions, whose franchise is hard to duplicate and has tremendous staying power or some permanence to it." — Warren Buffett TOP 10 WEALTH CREATORS (2007-2012) THE BIGGEST Rank 1 2 3 4 5 6 7 8 9 10 Company ITC TCS HDFC Bank MMTC HDFC State Bank of India Infosys Tata Motors Hind Unilever Jindal Steel Wealth Created (INR b) 1,187 1,082 744 671 558 556 516 499 457 436 THE FASTEST Company TTK Prestige LIC Housing Finance Coromandel Inter Eicher Motors IndusInd Bank MMTC Jindal Steel Bata...
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...cultural elements. Location and resources are crucial geographic factors influencing both national and corporate success, with population characteristics and institutional arrangements making up the most meaningful components of the cultural elements affecting both the success of firms and of nations. Resources, population and institutional factors are dynamic, manifesting a number of feedback loops. For example, institutional incentives stimulate technological discoveries, which, in turn, enable firms to pursue resourcesubstitution policies, thereby modifying production possibilities. During the period after the second world war, at least through the 1980s, Japan and Japanese firms seemed to have successfully adapted themselves to the competitive forces of emerging global markets. In spite of a poor natural resource base, a dramatically altered set of institutional arrangements (a combination of democratic government, free-markets and the rule of law) created a propitious atmosphere for innovative behaviour. Nowhere were adaptations to this altered environment more apparent than in the Japanese automobile and semiconductor industries and no firm was more successful, admired and emulated than Toyota Motor Corporation. Indicative of these changes is a Fortune magazine article, published several years ago, which provided a popular assessment of the successes of Toyota. It reported that Toyota was named the most admired motor vehicle manufacturer in the world in 1997, 1998 and 1999...
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...The Competitive Advantage of Nations Writer : Michael E. Porter (2001) Main contents “We need a new perspective and new tool” : An approach to competitiveness that grows directly out of an analysis of internationally successful industries, without regard for traditional ideology or current intellectual fashion.” • Natural Prosperity - Be Created / Not be inherited - Does not grow out of a country’s natural endowments, its labor pool, its interest rates, or its currency’s value , as classical economics insists • Competitiveness - A nation’s competitiveness : depends on the capacity of its industry to innovate and upgrade - Companies’ competitiveness : Gain advantages against the world’s best competitors because of pressure and challenge ( Benefit from having strong domestic rivals, aggressive home-based suppliers, and demanding local customers. - Competitive advantage : is created and sustained through a highly localized process. ( differences in national values, culture, economic, structures, institutions, and histories contribute to competitive success. - Every country has different environment ( Striking differences in the patterns of competitiveness - According to prevailing thinking : Labor cost, interest rates, exchange rates, and economic scale are the most potent determinants of competitiveness. ( So, Managers are pressing for more government support for particular industries...
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