Download INSEAD Consulting Club Book (2006) PDF

TitleINSEAD Consulting Club Book (2006)
File Size1.0 MB
Total Pages96
Document Text Contents
Page 48

INSEAD Consulting Book – 2006


- 48 -

ABILITY TO GENERATE CUSTOMER VALUE IS ROOTED
IN A FIRM’S STRUCTURAL POSITION AND CAPABILITIES

Structural Position Capabilities

Inputs
• Factor costs
• Location

Production technology
• Scale
• Scope
• Experience

Market
• Brand equity
• Customer switching costs

Government
• Patents
• Subsidies
• Franchise rights

Process
• Delivery
• New product development
• Service

Knowledge
• Technology
• Manufacturing
• Databases

Enabling conditions
• Management of human resources
• Decision/action
• Information
• Culture

Identify The Levers
Of Value

Identify The Levers
Of Value








ASSESSING COMPETITIVE POSITION

The Analysis

Drivers of advantage
• What drives competition and

competitive advantage?
• How will this evolve?

Client position
• What are the client’s structural position

and capabilities?
• Where is the client

advantaged/disadvantaged?
• To what degree?
• How might this be improved?

A Basic Approach

1. Assess relative strength in generating
customer value

2. Evaluate position on levers of
customer value

Page 95

INSEAD Consulting Book – 2006


- 95 -

10. Additional Sample Case Questions


1. A German luxury car manufacturer is interested in entering the sport-utility vehicle market (for
example, Jeep Cherokee) after noticing that the market has grown dramatically worldwide in the past
two years. How would you advise the manufacturer? What does it need to know before making an
entry decision? If it chooses to enter, what might a viable strategy be?



2. A North American manufacturer/retailer of high-end glassware experienced a dramatic decline in

same-store sales at its retail outlets last year. How would you begin to assess the reasons for the
decline? Using your analysis as a basis, what strategy would you recommend for the manufacturer?




3. A large public utility formerly had a monopoly in the British electricity market. Now that the market
has been deregulated, small power-generation companies have already captured a five percent share
from the utility by offering to provide large businesses in the U.K. with their own in-house power-
generation capabilities. The CEO of the utility wants to understand whether this trend will continue
and how she can prevent further loss of share. How would you answer her question?




4. A U.S.-based pharmaceutical company that focuses on discovering, developing, and selling drugs for
the treatment of cancer has been experiencing flat growth and is interested in expanding into new
businesses. In view of the growth and profitability of stand-alone cancer treatment centers in the U.S.,
the company is considering establishing and operating similar centers in China. This would be the
company's first foray into the cancer treatment center business. How would you evaluate the
attractiveness of the opportunity?



5. The Swiss Ski Association has been petitioned by an international snowboarding club to permit

snowboarding on the ski slopes within its jurisdiction. (Assume that the association currently forbids
snowboarding on all Swiss ski slopes.) If the association is interested in maximizing profits, how
should it respond to the petition? What factors would the answer depend upon?

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