Paul Romer Endogenous Growth

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Critically evaluating (discuss) the business philosophies of Amar Bose; how do you think Bose goes about analysing its competition? (25 marks)

Business Philosophy: -
Technical
Product
Production method
Sales
Marketing
Elements of these in all organisations – put them in order of importance for Bose.

How Bose analysis its competitors

Maslow’s hierarchy of needs
Competition important consequence of the paradigm change: sellers -> buyers market (diagram) •Onslaught of new business weather – increment, competition, choice •Customer value more pronounced segmentation of markets

Sellers’ market – least cost production paradigm, demand > supply •Buyers’ market – increased competition, need marketing orientation, demand < supply •Customers want more choice, more for their money, better quality products, transformation in “value”, importance of branding, classical marketing approach threatened •Right balance between customer perceived quality and price CPV •Customer Perceived Value, Keller and Kotler, importance of customer satisfaction

a)Argue why competition is important – need to take seriously b)Why company must change – adopt more marketing orientated approach

Q2

Critically asses Bose’s marketing strategies in light of the company’s competitive position. (25 marks)

Need good understanding of Bose strengths

Market customisation: Need to be in Niche market (triangle diagram) •Entry Market – Need high volume of sales to stay competitive •Middle Market – Less volume
Niche – Less again, can charge higher price (high value, high quality)

Main differentiation strengths of BOSE – SWOT analysis

STEP diagram (Segmentation, Targeting, Position) – connects context and customer

Positioning:
Position of funds spent on 6 c’s, ribbons (market efficiency and effectiveness) and dynamic arrow (market research) -> Diagram

Need right balance: -
-Market Effectiveness (before efficiency)– Good experience, producing the right thing for today’s world -Market Efficiency – don’t need to waste time looking for other brands

Brand position, people’s brain remember logos and pictures of market offering you like

SWOT analysis: Apply to each of major portfolios; Hi-fi, radio, headphones and Automotive

Q3

Using the Boston Group’s Matrix, recommend specific brand compatible ideas for Bose in the areas of market penetration, product development and market development. (30 marks)

BE CAREFUL COULD TAKE WRONG TURN, NEED TO UNDERSTAND IT – not entirely talking about BCG Matrix, use Ansoff’s (performance, strategic matricies) matrix as well.

Key strategy ideas - 3 separate heading: Market penetration, Product development, Market development •Be careful, comment with knowledge from brief
Use imagination on Automotive side
Extend technology to other manufacturers
Get context right
Customer relationships, keep in contact, market effectiveness

3 Themes
1)Understand competitors as well as customers -> competitive strategy 2)Strengths/weaknesses of BCG matrix
3)Fundamental competitive market strategies, perceive customer value (value attribute circles diagram) Combination of tangible and intangible assets 4)Bose leaders/challengers/niches/ or combo?
5)Balancing customer and competitor orientation, if true market leader need to analyse every competitor

Talk about performance with strategic matrixes
1)BCG matrix: Use diagram and heading to cover different parts of the question 2)Ansoff’s matrix: Older one, diversification (diagram)

Ansoff’s 3 out of 4 parts: -
1.Market penetration
2.Product development
3.Market development

Related 2 matrixes to different separate markets: -
Hi-fi, radio, headphones, speakers
Automotives

Criticise BCG matrix (few marks)
3 separate heading: Market penetration, Product development, Market development for Ansoffs Use diagram in context of report

Q4

What do you think will happen when Amar Bose...
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