Lecture 1 - External analysis Flashcards
The levels of competitors analysis
1) Macro: strategic analysis of the field and possible movements
2) Meso level: aims to identify and analyse the current relevant competition
3) Micro level: aims to identify the main direct competitor and to analyse their strenghts and weaknesses
Porter matrix for Retail (dimensions)
Y-axis -> assortment broad/small
X-axis -> Price oriented vs. added value oriented
Porter matrix for Retail (quadrants)
UL -> Value players
DL -> Discounters
UR -> Service players
DR -> Luxury players
Stepps in the creating the matrix:
1) size up market and name the axis
2) Determine POV, from how consumers percieve or own assesment of the company
3) Identify players
4) Fill in the matrix, position them in relation to the market leader
5) Check what you’ve filled in, no empty spaces
No compromise theory (dimensions)
Y-axis -> high vs low price
X-axis -> low vs high value
No compromise theory (quadrants)
UL -> value & price compromise
DL -> Value compromise
UR -> Price compromise
LR -> No compromise
No compromise theory (players)
DL -> hard discounters
Middle -> soft discounters
UR -> Full service players
How to bench mark positioning?
Via the customer relevancy model
Customer relevancy model (dimensions)
1) Price: level of attractive offers
2) Product: quality of assortment
3) Service: level of service
4) Acces: locations / opening hours / omni-channel
5) Experience: level of experience
Customer relevancy model (interpretation)
Score each dimension on a scale of 1 to 5. Excel in 1, be above average in a 2nd. Be average in the other 3.
Pentagon-and-triangle model
Make a distinction between front-office (Pentagon) and back-office (Triangle). Back office is not observable for consumers, but they create conditions to execute the concept wel.
Pentagon-and-triangle model (pentagon)
Back-office:
1) good agreements with suppliers
2) the proper functioning of all systems
3) the proper execution of logistics
Pentagon-and-triangle model (Triangle)
Front-office:
1) Place -> where
2) Product -> what
3) Value / price - worth
4) People - who
5) Communication - why
Other word for the pentagon-and-triangle model
Store compass
Other word for store compass
Pentagon-and-triangle model
Uses of mystery shopping
1) improvement (self-reflection)
2) benchmarking
Loyalty matrix (dimensions)
Y-axis -> High vs. low NLS
X-axis -> High vs. low NPS
NLS
Net loyalty score:
“How likely to visit store again?”
NPS Net Promoter score
Net promoter score:
“How likely to recommend to friends?”
Loyalty matrix (quadrants)
UL -> Trapped loyalty
DL -> Disloyalty
UR -> Pure loyalty
DR -> Fake loyalty
Importance perfomance mapping (dimenstions)
Y-axis -> high vs low importance for customer
X-axis -> low vs. high performance of supplier
Importance performance mapping (quadrants)
UL -> improvement necessary
DL -> not very important
UR -> Maintain performance
DR -> Strategic overkill
