Lecture 1 - External analysis

Question 1

The levels of competitors analysis

Answer 1

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

Question 2

Porter matrix for Retail (dimensions)

Answer 2

Y-axis -> assortment broad/small

X-axis -> Price oriented vs. added value oriented

Question 3

Porter matrix for Retail (quadrants)

Answer 3

UL -> Value players
DL -> Discounters
UR -> Service players
DR -> Luxury players

Question 4

Stepps in the creating the matrix:

Answer 4

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

Question 5

No compromise theory (dimensions)

Answer 5

Y-axis -> high vs low price

X-axis -> low vs high value

Question 6

No compromise theory (quadrants)

Answer 6

UL -> value & price compromise
DL -> Value compromise
UR -> Price compromise
LR -> No compromise

Question 7

No compromise theory (players)

Answer 7

DL -> hard discounters
Middle -> soft discounters
UR -> Full service players

Question 8

How to bench mark positioning?

Answer 8

Via the customer relevancy model

Question 9

Customer relevancy model (dimensions)

Answer 9

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

Question 10

Customer relevancy model (interpretation)

Answer 10

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.

Question 11

Pentagon-and-triangle model

Answer 11

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.

Question 12

Pentagon-and-triangle model (pentagon)

Answer 12

Back-office:

1) good agreements with suppliers
2) the proper functioning of all systems
3) the proper execution of logistics

Question 13

Pentagon-and-triangle model (Triangle)

Answer 13

Front-office:

1) Place -> where
2) Product -> what
3) Value / price - worth
4) People - who
5) Communication - why

Question 14

Other word for the pentagon-and-triangle model

Answer 14

Store compass

Question 15

Other word for store compass

Answer 15

Pentagon-and-triangle model

Question 16

Uses of mystery shopping

Answer 16

1) improvement (self-reflection)

2) benchmarking

Question 17

Loyalty matrix (dimensions)

Answer 17

Y-axis -> High vs. low NLS

X-axis -> High vs. low NPS

Question 18

NLS

Answer 18

Net loyalty score:

“How likely to visit store again?”

Question 19

NPS Net Promoter score

Answer 19

Net promoter score:

“How likely to recommend to friends?”

Question 20

Loyalty matrix (quadrants)

Answer 20

UL -> Trapped loyalty
DL -> Disloyalty
UR -> Pure loyalty
DR -> Fake loyalty

Question 21

Importance perfomance mapping (dimenstions)

Answer 21

Y-axis -> high vs low importance for customer

X-axis -> low vs. high performance of supplier

Question 22

Importance performance mapping (quadrants)

Answer 22

UL -> improvement necessary
DL -> not very important
UR -> Maintain performance
DR -> Strategic overkill