INTERNET COMPETITIVENESS Rethinking Strategy

TV News, Newspapers, Taxis, Bookstores, ?

IT WAS AT THIS POINT THAT WE KNEW WE OWNED THE

MARKET AND WERE SAFE

THE WAY BUSINESS THINKS

IS CHANGING MASS PRODUCTION

Engineering Model

Make it Sell it (Engineering Demand Model)

Early Information Importance & 4Ps

LEAN JAPANESE MODEL

Just In Time (JIT), TQM, 6 SIGMA,

Make it with – Marketing/ Consumer Research/

Modify

Then Came 70s

Today’s Competition

INTERNET/ INFORMATION AGE

Create Value Information – Innovation

Consumer Driven – Change

INFORMATION ITSELF IS NOT A VALUE

WHAT MY

ABOUT

METRICS?

WHAT ARE THEY

THINKING?

PRODUCTS

FNDING YOU

6

ROLE OF INFORMATION: RECOGNIZE

ADVANTAGES TRANSITORY FIND NEW ONES

HISTORY OR RUBBER

Manaus 1890-1920

•MORANO GLASS

PLANS FOR THE FACTORIES

OF LOWEL STOLEN FROM

ENGLAND

Old Marketing 4 Ps Mix Internet EnabledMix

Price Heavy influence of firm in relation to

competitive positioning.

Price segments in order to achieve the highest

price from different consumer groups through

targeted discounting.

Significantly influenced by consumer.

Internet searches for price and information flow by

social networks, and reduce company's ability to

regulate price.

INFO SEARCH PRICING

Freeloader Research – Information

Place Marketplace focus with company sites. Some

freedom from place through mail orders and

mailing of brochures.

Internet frees companies from location—

location becomes web address.

globally available.

AMAZON HAS EVERYTHING

Promotion Standard avenues of advertising, using mixture

of TV, print, radio, etc. Idea is to "intercept"

people and get them to shift away from current

activity toward seller's promotion (read the ad,

see the billboard, interrupt the TV show).

COMPANY DRIVEN intercept and message

BrAND – IMAGE Company Controlled

Search Engine Optimization a central means of

reaching consumers. Uses data mining techniques

to focus resources toward specific high-potential

consumer groups. Digital campaigns non-intrusive

to the consumer. ENGAGE, SHARE

TELLLING NOT SELLING

CONSUMER DRIVEN

TARGET : FACEBOOK & GOOGLE

DEMOGRAPHIC – DATAMINIG

Product All products and services available but often in

predetermined supply due to inventory issues. Relies

on location for distribution.

THROUGH PROMOTION YOU FIND

PRODUCTS/SERVICES PUSHED AT YOU

Digital services and products available for immediate

download and use. Physical products available through mail

distribution. long tail ability

PRODUCTS FIND YOU -DATA MINING/ SOCIAL NETS

gps

NYTimes best seller – not

published 7th J.K. Rowling's

Harry Potter book Amazon's

most pre-ordered product 1.6

million copies globally

Looking @ Old Marketing 4 Ps Mix Internet EnabledMix

Price

Place

Promotion

Product

Looking @ Old Marketing 4 Ps Mix

OUTBOUND MARKETING

Internet Enabled Mix

INBOUND MARKETING

Price Heavy influence of firm in

relation to competitive

positioning.

Price segments in order to

achieve the highest price

from different consumer

groups through targeted

discounting.

Significantly influenced by

consumer. Internet searches

for price and information

flow by social networks, and

reduce company's ability to

regulate price quickly Dell.

INFO SEARCH PRICING

Freeloader Information

Place SHIFT FRM

MARKETPLACE

focus with company sites.

Some freedom from place

through mail orders and

catalogs

TO MARKETSPACE

Internet frees companies

from location—location is

web address. Makes all

products/services globally

available to al people

(amazon mission statement)

Promotion

Product

Looking @ Old Marketing 4 Ps Mix Internet EnabledMix

Price Heavy influence of firm in relation to

competitive positioning.

Price segments in order to achieve the

highest price from different consumer

groups through targeted discounting.

Significantly influenced by consumer.

Internet searches for price and information

flow by social networks, and reduce

company's ability to regulate price.

INFO SEARCH PRICING

Freeloader Information

Place SHIFT FRM MARKETPLACE

focus with company sites. Some freedom

from place through mail orders and

catalogs

TO MARKETSPACE

Internet frees companies from location—

location is web address. Makes all

products/services globally available to al

people (amazon mission statement)

Promotion FIRM DRIVEN OUTBOUND

intercept and message

Standard avenues of advertising,

using mixture of TV, print, radio, etc.

Idea is to "intercept" people

BRAND – IMAGE Company

Controlled

HARD TO MEASURE

CONSUMER DRIVEN INBOUND

MARKETING

Search Engine Optimization a

central means of reaching

consumers. Digital campaigns non-

intrusive to the consumer.

FACEBOOK,GOOGLE.

BRAND – IMAGE Consumer

Involvement

DATA MINE TARGETED

MEASUREABLE

Product

Looking @ Old Marketing 4 Ps Mix Internet EnabledMix

Price Heavy influence of firm in relation to competitive

positioning.

Price segments in order to achieve the highest price

from different consumer groups through targeted

discounting.

Significantly influenced by consumer. Internet searches

for price and information flow by social networks, and

reduce company's ability to regulate price.

INFO SEARCH PRICING

Freeloader Information

Place SHIFT FRM MARKETPLACE

focus with company sites. Some freedom from place

through mail orders and catalogs

TO MARKETSPACE

Internet frees companies from location—location is web

address. Makes all products/services globally available to

al people (amazon mission statement)

Promotion FIRM DRIVEN OUTBOUND

intercept and message

Standard avenues of advertising, using mixture of TV,

print, radio, etc. Idea is to "intercept" people

BRAND – IMAGE Company Controlled

HARD TO MEASURE

CONSUMER DRIVEN INBOUND MARKETING

Search Engine Optimization a central means of reaching

consumers. Digital campaigns non-intrusive to the consumer.

FACEBOOK,GOOGLE.

BRAND – IMAGE Consumer Involvement

DATA MINE TARGETED MEASUREABLE

Product products and services

available but often in

predetermined supply due to

inventory issues.

Relies on location for

distribution.

Consumers find goods

THROUGH PROMOTION YOU

FIND PRODUCTS/SERVICES

Digital services and products

available for immediate

download and use. Physical

products available through mail

distribution.

Goods find consumers

long tail ability

With Internet Small is Possible

PRODUCTS FOR EVERYONE 80 20 RULE OF CONSUMER’S OUT THE WINDOW

INFORMATION BASED

98%

55k Movies

95%

COMPETITION

PROFITS

Intentional Acts: How Shoppers Find Vendors Online

37% use search engines

33% go directly to site

17% use comparison shopping sites

15% use product rating sites

Online shoppers highly intentional, looking for specific products, companies, services

New York Times, Oct 5, 2013 p 4

CUSTOMERS RULE – RETAIL

STRATEGY OF CUSTOMER SERVICE FIRST

•WEB The first United Breaks Guitars video cost $150 viewed on YouTube 10 million over 100 million people learned Dave’s story Estimated that the first UBG video cost United Airlines over $180 million.

Technology, friend or foe?

11,000 SELLERS

3,500 FLOWER TYPES

5,000 BUYERS

120 AUCTION GROUPS

THE DUTCH FLOWER

GROWERS (DFA)

TELE-FLOWER AUCTION

(TFA)

1097 Pope Urban II

outlawed crossbow

Missed the

first Bus with

Amazon

Then came

NOOK

Will they like

Border’s fade

away?

Barnes and Noble strategy shift"

Active URL

http://my.brainshark.com/Barnes-Noble-

Strategy-Shift-Case-Group1TeamD-

737801109

Team Members (Group 1 Team D)

21

FRONTAL

CO

MP

ET

ITIO

N

FLANKING

BYPASS

FLANKING

ENCIRCLEMENT

GUERRILLA

Karl von Clausewitz

1780 –1831

22

FRONTAL

CO

MP

ET

ITIO

N

Frontal Assault

Attacker must have superior

resources and willingness to

persevere OR Find an

undefended Market

22

CO

MP

ET

ITIO

N

60S JAPANESE

CARS, COPIERS

MOTORCYCLES

INFORMATON SENSITIVE WINNING BY

FLANKING

CO

MP

ET

ITIO

N

TECHNOLOGY SENSITIVE

RESEARCH & CONSUMER INTENSIVE

BYPASS

25

CO

MP

ET

ITIO

N

ENCIRCLEMENT

Encirclement Greater variety and/or serves more markets

E- SHELFSPACE

25

Shop-Click-Drive, Offer to GM’s 4,300 Dealer Network

Let new-car buyers use Web to lock in the price of a new car, get an estimate of the

trade-in value of their old car, apply for financing and even arrange a test drive or

delivery of their new vehicle. PROBLEM to GM: State Franchise Laws for Cars

Debbie Mahaffy bought her Camaro online,

helped by email. Sunday, October 6, 2013

NEVER HAS ENVIRONMENT

BEEN MORE RECEPTIVE TO

NEW IDEAS

& MORE HOSTILE TO

EXISTING FIRMS and

NATIONS

COMPANIES MORE

LIKELY TO BE

AMBITION

CONSTRAINED

THAN RESOURCE

CONSTRAINED

Big chains invested sophisticated Web-

systems customers order & pay deliveries

quickly without calling.

Giving new edge in the battle for an ever-

bigger advantage over smaller chains and

independent pizza shops that lack the

capital or technological know-how to

compete on the Web. (WSJ Jargon 2/7/14 1)

Big pizza captured 52% of orders last

year independent restaurants fell to

19%

Rizzo's Pizza in New York.

JOHNSON’S WHERE GOOD IDEAS COME FROM - THE NATURAL HISTORY OF INNOVATION

NETWORK - IDEAS MOST COME FROM INTERACTION

Natalia Rodriguez, co-founder of Jiva Cubes Jiva Cubes

Kickstarter and Crowdhoster

Crowdfunding

31

The problem- not really so much

how to get new, innovative thoughts into your mind,

BUT how to get old ones out

“It is generally much easier to kill an

organization than change it substantially.”

-Kevin Kelly, Out of Control