Strategy___External_Environment

Example of practical application of External environment data gathering Process: Namibian Agricultural organisation June ‘09 M Ungerer USB Strategic Management 1 Abcc Strategy: Industry Analysis Industry trends and opportunities (1)  How would you describe the Industry/Industry cluster Xyzz is competing in'  Zzz  What are the other industry/alternative industry descriptions you can define for the competitive space Abcc wants to occupy'  yyy M Ungerer THE STRATEGY WEB 3 Industry trends and opportunities (2)  What are the challenges and rivalries in this industry' What are some of the key trends that we observe here':  Are there any threats from disintermediating industries' • Y…   Are there any threats from current players or new entrants into this industry – now and in future' • • Y… Y… Are there changes to the industry rules that will make it difficult in the future'  What orthodoxies (generally accepted rules, approaches, thinking) exist in this industry, that we can possibly capitalize on'  Yy.. M Ungerer THE STRATEGY WEB 4 Industry trends and opportunities (3)  How can we shift our relative bargaining power in this industry. What advantages is there in doing this'  Yy..  Can we compete in other industries through substitute products and services that can add or improve value, based on some of our current skills'  Yy.. M Ungerer THE STRATEGY WEB 5 Industry Value chain  What is the position of our organisation in the industry value chain' What are the areas of threats and opportunities' M Ungerer THE STRATEGY WEB 6 Summary: Industry trends and opportunities Key Industry Trends Implications/Opportunities/Threats M Ungerer THE STRATEGY WEB 7 Abcc Strategy: Competitor Analysis Competitor trends and opportunities (1.1)  Who are the main competitors/potential competitors of Abcc' (Think of who have the capabilities to replace your offering, substitute your offering). Also describe the competitors core business. Main Competitors Their core business, offerings and strengths M Ungerer THE STRATEGY WEB 9 Competitor trends and opportunities (1.2)  Who are the main competitors/potential competitors of Abcc' (Think of who have the capabilities to replace your offering, substitute your offering). Also describe the competitors core business. Main Competitors Their core business, offerings and strengths M Ungerer THE STRATEGY WEB 10 Thinking about Competitors Here essentially the focus moves to the other players in the industry you play in or players from industries potentially targeted by your company. Key questions to answer is: •Who are our real competitors' •Where are they beating us and why' •What are their business designs' •What are their strategies and where are they making investments to break out of their current value chain role' •How can we counteract their competitive positioning' We should also now already establish the right mental model for our review. When looking at your competition do not think of ways of going against competitors but of going around them. It is based rather on avoidance than attack. ( Hamel) Too many examples exists of head-on battles that developed into ever escalating price or promotion wars, pressure on margins and eventually demise M Ungerer THE STRATEGY WEB 11 Conclusions: Competitor trends and opportunities Key Competitor Trends Implications/Opportunities/Threats M Ungerer THE STRATEGY WEB 12 Abcc Strategy: Customer Trends Customer trends and opportunities (1) The first important aspect here is to be able to categorize customers accurately. Be very clear on who the customer is and don’t think you have a homogeneous customer base. Think of end customer groups who have similar needs.  What do customers currently value and prefer' (per segment)  Zz..  How have their priorities changed'  Zz..  Are there any new customers we should include in our scope'  Zz.. M Ungerer THE STRATEGY WEB 14 Customer trends and opportunities (2.1) The first important aspect here is to be able to categorize customers accurately. Be very clear on who the customer is and don’t think you have a homogeneous customer base. Think of end customer groups who have similar needs. Segment Description Current Customer Needs Future Customer Needs Present Offering Features Gaps & Implications for new offerings/ features M Ungerer THE STRATEGY WEB 15 Customer trends and opportunities (2.2) The first important aspect here is to be able to categorize customers accurately. Be very clear on who the customer is and don’t think you have a homogeneous customer base. Think of end customer groups who have similar needs. Segment Description Current Customer Needs Future Customer Needs Present Offering Features Gaps & Implications for new offerings/ features M Ungerer THE STRATEGY WEB 16 Abcc Strategy: External Analysis Integration Development of Opportunities and Treats based on External analysis Threats Impact Scale 1-10: 1=Weak 10=Strong Threats Impact Scale 1-10: 1=Weak 10=Strong M Ungerer THE STRATEGY WEB 18 Development of Opportunities and Treats based on External analysis Opportunities Impact Scale 1-10: 1=Weak 10=Strong Opportunities Impact Scale 1-10: 1=Weak 10=Strong M Ungerer THE STRATEGY WEB 19