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CHAPTER 4CHAPTER 4
The Microenvironment in The Microenvironment in an Era of Global an Era of Global
CompetitionCompetition
ObjectivesObjectives
Understand microenvironmental four C’sDiscuss customer economic utilityUnderstanding various competitive
strategiesDescribe the value chainUnderstand importance of global competitionDiscuss global impact on the four C’sIdentify global cultural differencesDiscuss structuring management for
international marketing
THE FOUR CTHE FOUR Css
Company
The Four CThe Four Css: Company: Company
Total organization InteractiveFlexibilityEntrepreneurial
approach Intrapreneurial
approach
The Four CThe Four Css: Customers : Customers - -
Economic UtilityEconomic Utility
Form UtilityPlace UtilityTime UtilityPossession Utility
Form UtilityForm UtilityForm UtilityForm Utility
Created by conversion of raw
materials into finished goods or
services.
Created by conversion of raw
materials into finished goods or
services.
Place UtilityPlace UtilityPlace UtilityPlace Utility
Created by making goods and
services available where consumers
want them.
Created by making goods and
services available where consumers
want them.
Convenience store
Created by making Created by making goods and goods and
services available services available when when consumers consumers
want them.want them.
Created by making Created by making goods and goods and
services available services available when when consumers consumers
want them.want them.
Time UtilityTime Utility
Created by transfer Created by transfer of physical of physical
possession and possession and ownership of a ownership of a
product to a product to a consumerconsumer
Created by transfer Created by transfer of physical of physical
possession and possession and ownership of a ownership of a
product to a product to a consumerconsumer
RetailerRetailer
ConsumerConsumer
Possession UtilityPossession Utility
The Four CThe Four Css: : CompetitorsCompetitors
LevelsProduct classProduct categoryBrands
TypePriceFormTimeLocation
Four Types of Four Types of CompetitionCompetition
Four Types of Four Types of CompetitionCompetition
Price-basedPrice-based
Quality-basedQuality-based
Time-basedTime-based
Location-basedLocation-based
The Four The Four CCss:Collaborators:Collaborators
AlliancesNetworks Informal
partnershipsSuppliersVirtual corporations
Company
The Value ChainThe Value Chain
UPSTREAM
DOWNSTREAM
PRIMARYACTIVITIES
Raw MaterialsSupplier
ComponentsSupplier
ServiceSupplier
Transportationcompany
Wholesaler
Retailer
Customers
Core CompetencyCore Competency
“…is a proficiency in a critical functional activity that helps provide a company’s unique competitive advantage.”
Resource Concentration
Unique Value
Executed in-house
Competitive superiority
Imports
Exports
Global EconomyGlobal Economy
The Four CThe Four Css in a Global in a Global Economy: CompanyEconomy: Company
Go/No GoCompetition is global
Price of beans in Columbia ?
Wine production in France?
Oil supply from Middle East & The Russian Federation?
Four CFour Css in a Global in a Global Economy: CustomersEconomy: Customers
Cultural values
Religious beliefs
Trends
Government “policy”
Four CFour Css in a Global in a Global Economy: CompetitorsEconomy: Competitors
Intensified“Home field”
advantagesJapanese keiretsuTariffs and import
quotas
Four CFour Css in a Global in a Global Economy: CollaboratorsEconomy: Collaborators
Capital Outlay/RisksHigh Low
DirectInvestment
Joint Venturing
Exporting
The Four CThe Four Css in a Global in a Global Economy: CollaboratorsEconomy: Collaborators
Central role of technology
ReviewReview
Understand microenvironmental four C’sDiscuss customer economic utilityUnderstanding various competitive
strategiesDescribe the value chainUnderstand importance of global competitionDiscuss global impact on the four C’sIdentify global cultural differencesDiscuss structuring management for
international marketing