Strategy Lessons Learned
Porter 5 FORCES (External Analysis)
EXTERNAL Barriers to entry, suppliers power, substitute products, exit barriers (si metiste baro… como sales) productos complementarios.
Internal
Tangible Resources: Inventory, warehouses, assembly facilities and retail locations.
Intangible Resources: Brand recognition and customer base in Colombia.
Technical expertise: Employees are also essential in the assembly and sale of UM motorcycles
Value Chain Analysis
Purchasing components and materials
Assembly operations, testing and quality control:
Inventories of finished products:
Distribution and dealer support:
Recommendations: identify the company’s target customer (who), what the product offering exactly is (what), and how this offering will be presented to the customer (how).
PORTER Generic STRATEGY:
Cost Leadership Strategy (Wal mart, tesco) This strategy involves the firm winning market share by appealing to cost-conscious or price-sensitive customers. This is achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return on investment, the firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve this. The first approach is achieving a high asset turnover. In service industries, this may mean for example a restaurant that turns tables around very quickly, or an airline that turns around flights very fast. In manufacturing, it will involve production of high volumes of output. The second dimension is achieving low direct and indirect operating costs. This is achieved by offering high volumes of standardized products, offering basic no-frills products and limiting customization and personalization of service. Production costs are kept low by using fewer components, using standard components, and limiting the number
EXTERNAL Barriers to entry, suppliers power, substitute products, exit barriers (si metiste baro… como sales) productos complementarios.
Internal
Tangible Resources: Inventory, warehouses, assembly facilities and retail locations.
Intangible Resources: Brand recognition and customer base in Colombia.
Technical expertise: Employees are also essential in the assembly and sale of UM motorcycles
Value Chain Analysis
Purchasing components and materials
Assembly operations, testing and quality control:
Inventories of finished products:
Distribution and dealer support:
Recommendations: identify the company’s target customer (who), what the product offering exactly is (what), and how this offering will be presented to the customer (how).
PORTER Generic STRATEGY:
Cost Leadership Strategy (Wal mart, tesco) This strategy involves the firm winning market share by appealing to cost-conscious or price-sensitive customers. This is achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return on investment, the firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve this. The first approach is achieving a high asset turnover. In service industries, this may mean for example a restaurant that turns tables around very quickly, or an airline that turns around flights very fast. In manufacturing, it will involve production of high volumes of output. The second dimension is achieving low direct and indirect operating costs. This is achieved by offering high volumes of standardized products, offering basic no-frills products and limiting customization and personalization of service. Production costs are kept low by using fewer components, using standard components, and limiting the number