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From Tool to Business

From Tool to Business. The business – market mode. The market mode is the way in which a company uses its strongest value activities (TPLMS) to enter a market and leave other value activities to the trade channel.

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From Tool to Business

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  1. From Tool to Business

  2. The business – market mode The market mode is the way in which a company uses its strongest value activities (TPLMS) to enter a market and leave other value activities to the trade channel. These strong value activities -competitive advantages- are the green areas in the SWAT analysis. The red areas need to be taken care of by the trade partner or need to be improved by the exporter Each market mode focuses on one or two of the specific value activities (TPLMS) and shows, which is the best way to escape the downward price spiral and enter the high road to global markets.

  3. Market Modes - who does what ? TECHNOLOGY PRODUCTION CUSTOMER VALUE LOGISTICS COST MARKETING SUPPORT CONSUMER SELLER BUYER

  4. Market Modes – howto upgrade ? BRAND PATENT TECHNOLOGY MARKETING VALUE PRODUCTION

  5. 1. Jobbing, Cut-Make-Trim-Pack, Maquila, Business Process Outsourcing Seller concentrates on production or execution and leaves technology, design, marketing to buyer -low value adding. Typical trade partners are A-brands, companies with simple after sales requirements TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER SELLER BUYER

  6. 1.1. CMTP/Maquila TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER CMT

  7. 1.2. BPO/call centre TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT HSBC CONSUMER CALL CENTRE

  8. 2. Sub-contracting, Custommanufac-turing, Knowledge Process Outsourcing Seller produces under specifications of buyer,sources all materials. Buyer concentates on logistics, marketing and after sales. Typical trade partners are large retail chains, T1/ OEM’s, firms with more complex after sales requirements. TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER SELLER BUYER

  9. 2.1. Cosmetics - sprayers TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER SPRAYER LTD. “CHANEL”

  10. 2.1. Automotive – T2 Tier 2 –piston manufacturer Tier 1 – engine manufacturer OEM – truck manufacturer

  11. 2.3. Engineering services TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER ENGINEERING FIRM KEMA

  12. 2.4. “FOB” TECHNOLOGY TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER SELLER LEVIS

  13. 3. License manufacturing Seller has captive (regional) markets, but lacks the technology or design capacity. Sources technology from third parties and concentrates on marketing. Typical alliances are with enineering firms, design studios, laboratories TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER SELLER BUYER

  14. 3. License manufacturing “License and buy back” : • Buyer provides the design, drafts, formulation of product, often trough a design studio • Buyer provides sometimes a “secret component” • Seller takes care of production Other modes : • Seller takes care of marketing, sometimes under own label, sometimes under licensor’s brand • Seller takes care of outgoing logistics • Suitable for regional markets, beware of marketing restrictions from licensor

  15. 3. License manufacturing FREE MARKETS BLOCKED MARKETS LICENSOR LICENSEE LICENSEE LICENSEE

  16. 3.1. Food processing TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER BOTTLER COCA COLA

  17. 4. Private label, sourcing, Intellectual Property/Owncontent Seller has a unique technology or design, production or execution facilities, but lacks/does not want to get involved in marketing after sales. Typical trade partners are retail stores, B-brands, OEM’s. TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT CONSUMER SELLER BUYER

  18. 4.1. Automotive – car assembly TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT CONSUMER MAGNA STEYR CHRYSLER

  19. 4.2. Oil industry TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT SHELL CONSUMER

  20. 4.3. Food processing TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT CONSUMER SELLER MORNING FRESH

  21. “The supermarketshelf” FIGHTING BRAND HOUSE BRAND A -BRAND

  22. 4.4. Accessories – sourcing TECHNOLOGY PRODUCTION LOGISTICS LOGISTICS COST MARKETING SUPPORT CONSUMER UMBRALLA MNF. VODAFONE

  23. 5. Full value , brand, IP/own content TECHNOLOGY Seller has own technology, content or design, markets its products or service under own brand through trade channels or on the web. Typical trade partners are distributors, retail, publishers-or direct sales PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER SELLER BUYER

  24. 5.1. Games TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER APPLE

  25. 5.2. Garments - brand TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER CLEVER MODA S.A. RETAIL

  26. 5.3. Food processing - brand TECHNOLOGY PRODUCTION LOGISTICS COST MARKETING SUPPORT CONSUMER BUYER

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