Paul Romer Endogenous Growth
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,
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,