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COMPETITIVE and industry assessment Comprehensive understanding of the market characteristics, industry structures, competitors, and their business models is fundamental for deploying the value chain management process. Indeed, as the objective is to develop and sustain competitive advantage, differentiation with focus on the market, yet consistent with the industry forces, is called for. While many studies and assessment techniques are available, and should be reviewed when available, at VXTConsulting we favor three that provide comprehensive views and powerful insight for value focused firms. The SWOT analyses we conduct proceed by evaluating our clients’ value chains against their competitors’; an approach which allows us to link distinctive market preferences to business model performance and competitive positioning strategies. This research methodology also guides us in identifying potential offer gaps which may later be assessed for opportunities through our value analyses. We also take note of particular model weaknesses or strengths using them as beacons for future opportunity evaluation and development. Benchmarking provides significant perspectives regarding performance. Yet, as we are interested in causality, we opt for a model addressing 3 dimensions and brings into focus meaningful correlations between market preferences, performance, and strategic decisions which reflect on the business models; the dimensions being: Ø Customer satisfaction and performance ratings Ø Financial performance and market sizing and share Ø Product/service platform and supply strategy (value chain) To incorporate the dynamics of the market structures and account for stakeholders such as suppliers, channels, regulators amongst others, we analyze and assess our client’s position vis-à-vis the five competitive forces of its industry: Ø Entry Barriers Ø Supplier Power Ø Buyer Power Ø Competitors Ø Threat of Substitutes When possible, these analyses should be conducted at the market segment level, otherwise, when our clients intend to pursue a market focus strategy, inferences are made in order to approximate the pertinent data necessary to develop a competitive positioning strategy. Results from these assessments clearly set the agenda for strategic objective setting, planning, decision making, and control of the value chain management process. The findings also lead to developing frameworks for the customer value and functional value analyses, for which they provide much of the competitive and market data. |
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