©Arbeitsbereich Marketing & Innovation …...©Arbeitsbereich Marketing & Innovation Von-Melle-Park 5 • Raum 3071 • 20146 Hamburg Tel: +49 40 42838-9095 • Fax: +49 40 42838-5250

©Arbeitsbereich Marketing & Innovation

Von-Melle-Park 5 • Raum 3071 • 20146 Hamburg

Tel: +49 40 42838-9095 • Fax: +49 40 42838-5250

Email: [email protected]

Dr. Sajad Rezaei • Universität Hamburg •

Arbeitsbereich Marketing & Innovation

International Market Strategies


AMI Team

2

Institutsleitung

Prof. Dr. Thorsten Teichert

Arbeitsbereich für Marketing und Innovation (AMI) Lehrstuhl für Marketing und Medien

Von-Melle-Park 5 ● R. 3076 (Sekretariat)

http://wiso.uni-hamburg.de/ami/

Post Docs & Wissenschaftliche Mitarbeiter

Philipp Wörfel

Nick Zuschke

Dr. Rohit Trivedi

Dr. Sajad Rezaei


Forschungsprogramm AMI

3

a) Subconscious Decision (Processes)

• Impulsive Consumption & Behavioral Addiction

• Psychophysiological Process Measures

b) (Regular) Consumer Decisions within Social

Environments

• Behavioral Pricing, Product Positioning, & Social

Media

• Decision-Making Processes at the Point-of-Sale

c) (Novel) Decisions for Innovative Products and

New Markets

• Market Perceptions & Product Interpretation

• Preference Formation & Preference Decisions

d) Strategic Decisions in Organizations

• Innovation & Service Orientation

• Microfoundations of Strategy & Dynamic Capabilities.


Lehrprogramm

4

Vorlesungen Seminare

Master- und Bachelorarbeiten

• Bachelorseminar Wirtschaft und Kultur China (BA)

• Nachhaltiges Marketing (BA)

• Consumer and Management Decisions (MA)

• Literaturarbeiten

• Empirisch mit eigener Erhebung

• In Zusammenarbeit mit einem Praxispartner

(aktuelle Themen auf unserer Internetpräsenz unter „Lehre“)

SoSe: • Einführung Marketing (BA):

Marketinggrundlagen und Nachhaltigkeit • Operative Marktforschung (BA) • Nachhaltiges Innovationsmarketing (BA) WiSe: • Konsumentenverhalten (BA) • Einführung Marketing (BA):

Marketinggrundlagen und Nachhaltigkeit • Quantitative Research Methods for

Market Strategies (MA) • International Market Strategies (MA)


Materials & password

5

• Information and slides regarding lecture can be downloaded on our

website:

www.wiso.uni-hamburg.de/ami

Lehre Master International Market Strategies (WS17/18)

Password:

IMS17SR

STiNE

http://www.wiso.uni-hamburg.de/ami





Dates

6

Dates

International Market

Strategies


Objective of the Course

• The course addresses core questions in strategy theory and practice

• It's about getting to know the basics of business and market strategies

That is…

– An in-depth understanding what strategy is all about

– The core theoretical models and most important actors in strategy research

– Important conceptual and methodological insights from marketing and strategic research

– Interdisciplinary know-how which integrates the market and technology perspective

• Transfer this theoretical know-how to practical strategic and entrepreneurial decisions in an international environment

• Learn what's necessary to develop professional and sustainable market strategies


Recourses

Market opportunity

Execution


Roadmap

INTRODUCTION

STRATEGY BASICS Strategy and Competitive Performance

Strategy Discovers Uniqueness : The Role of Resources & Knowledge

Strategy as Process and Practice

STRATEGIC ISSUES IN A COMPANY

Marketing and Branding as Strategic Forces Strategy and Innovation

Strategic Decision-Making

GLOBAL STRATEGIES International and Collaborative Strategies

Globalization and Strategy


The textbook

Strategy – Theory and Practice

Clegg, S.; Carter, C.; Kornberger, M.; Schweitzer, J.

2011, SAGE Publications Ltd.

E-book is available for downloading (Campus Catalogue).


Strategy: Theory and Practice

An Introduction


Objectives of Today´s Lecture

12

• Define strategy and know the key concepts that constitute it

• Explain strategy’s importance in management practice

• Understand the genesis of strategy as an academic

discipline

• Discuss different styles of strategy

• Be aware of the limitations to strategy


Internationalization vs. Glocalization


Internationalization vs. Glocalization

• Glocalization as a term is a hybridization of the global and the

local, of globalization and localization

• Describes how regional tendencies and local cultures intersect

with the proliferation of global corporations

• Glocalization means the simultaneous presence of both

universalizing and particularizing tendencies


What is Market(ed)?

Goods

Services

Events & Experiences

Ideas

Places & Properties

Organizations

Information

© Pearson Education South Asia Pte Ltd 2013. All rights reserved

Persons


Persons

Companies may use celebrities to endorse their products to appeal to an international audience.





Different types of markets

Homogenous or pure market

Easy for a firm to imitate success almost immediately because

information about the market, its customers, products or production

costs is available to all players. Foreign currency is a good example

Monopoly

There are no direct competitors to worry about. If an organization is

in the fortunate position of having no competitors, its strategic

objective will be to retain full control and protect that position

Oligopoly

Characterized by a limited number of players acting in relatively

predictable and coordinated ways to supply products and services

Hypercompetition

Depicts a market in which the sources of competitive advantage

can change quickly, making it difficult to maintain above-average

profits for long


Flows in a modern exchange economy

COPYRIGHT © 2016 PEARSON EDUCATION, INC. 1-21


A Simple Market/ing System


Key Customer Markets

• Consumer markets

• Business markets

• Global markets

• Nonprofit & governmental markets

COPYRIGHT © 2016 PEARSON EDUCATION, INC. 1-23


Strategy = Knowledge +Capability (or the power to accomplish things)

What is strategy?


• According to Google there are 62 million answers to this question!

• Rather than review them all, a good way of approaching the question

is through studying what strategists actually do when they strategize.

But that's not the only answer to this question…

Source: Clegg et al. (2011) – Strategy Theory & Practice - Teaching Material

What is

strategy?


Levels of strategy

• Corporate-level strategy

– ‘What business should we be in?’

• Business-level strategy

– ‘How do we compete in this business?’

• Functional-level strategy

– ‘How do we implement the decisions made about

corporate- and/or business-level strategy?’


Let's ask the "strategy guru"…


What is strategy? – A definition

“The determination of the basic

long-term goals and objectives of

an enterprise, and the adoption of

courses of action and the

allocation of resources necessary

for carrying out goals”.

Source: Chandler, A. D. "Strategy and Structure Chapters in the History of the Industrial Enterprise", The MIT Press, Cambridge, 1962.


What is Strategy ?

• Consists of competitive moves and business approaches used by

managers to run the company

• Management’s “action plan” to

• Grow the business

• Attract and please customers

• Compete successfully

• Conduct operations

• Achieve target levels of organizational performance


The Hows that Define a Firm's Strategy

• How to grow the business

• How to please customers

• How to outcompete rivals

• How to manage each functional piece of the business (R&D,

production, marketing, HR, finance, and so on)

• How to respond to changing market conditions

• How to achieve targeted levels of performance


Key Elements of a Successful Strategy

• Developing a successful strategy hinges on making competitive

moves aimed at

• Appealing to buyers in ways to set the enterprise apart from rivals and

• Carving out its own market position

• Sustain differentiated market position

• Involves developing a distinctive element to

• Attract customers and

• Produce a competitive edge


Strategy addresses

“major initiatives, either intended or emergent,

which involve managers using resources

to enhance firm performance in competitive environments,

on behalf of owners.”

So another rather paradigmatic definition of

strategy could be…

Source: Clegg et al. (2011) – Strategy Theory & Practice - Teaching Material, p. 10


Example : Alphabet Inc.

http://www.forbes.com/sites/stevefaktor/2013/05/23/featuredeconstructing-googlersquos-strategy-will-google-eat-your-business-next/#447fc6973da6


Evolution

L L


Can you recall the strategy of a company that

you are familiar with?

Please describe that strategy.

What do think of it?

?


• Chief Strategy Officers (CSO) share a common characteristic: they

are action-oriented, driven increasingly by:

– Rapid changes in the business landscape

– Digitally knowledge-driven society

– Information overload

– Strategizing becoming a continuous process rather than a

periodic event.

What do strategists do?



What is Apple strategy?


Strategic Principles: Maneuver Conflict


Marketing Myopia

• Marketing myopia is focusing only on existing wants and losing sight

of underlying consumer needs

• The mistake of paying more attention to the specific products a

company offers than to the benefits and experiences produced by

these products


Value: A customer’s subjective assessment of

benefits relative to costs in determining the worth of a

product.

Customer

Costs

Customer

Benefits Value = –

40

Designing a Customer Value-Driven Market Strategy


Four generic determinants of value creation


• World War II kick-started modern conceptions of strategy.

– Planning, logistics and rational design in US war effort

– Post-war, military planners moved into large US corporations

– Their tools were largely drawn from economics.

Strategy as a paradigm



• A number of key figures founded modern strategy:

– Alfred Chandler: strategy drives structure

– Igor Ansoff: rational planning

– Edith Penrose: the theory of the firm and strategy

– Michael Porter: industry analysis

Key figures of modern strategy


• Changes in the environment create a need for new strategies. As

new strategies develop, they require a new organizational

structure to house them

• Strategy, driven by changes in the environment, should drive the

organization

• Strategy drives structure and attention should be focused on the

strategic plan driving, dominating, and determining

organizational structure.

Chandler


• In his book Corporate Strategy (1965) Ansoff identified three different levels of action: – Operational: the direct production processes

– Administrative: the maximization of efficiency of the direct production processes

– Strategic: the concern with the organization’s relation with its environment.

• Ansoff’s influence is echoed in management thinking that understands those at the top as the strategic thinkers of the organization

• From this perspective their task is to define the big picture and to steer the organization

• Top management has a role denied to the lower levels of the hierarchy, since the latter lack data and strategic foresight; their role is to be the instrument that implements strategy.

Ansoff


Ingor Ansoff Matrix

– rational planning


• Porter proposes that:

– Firm profitability is dependent on industry structure

– Industry structure matters more than the firm’s capabilities

– crudely put, the environment determines success, not

the resources controlled.

Porter


Wang Chuan Fu

• Penrose wrote The Theory of the Growth of the Firm (2009)

– Penrose established the firm as an object of specific economic analysis

separate from the market. She saw the firm as a collection of productive

resources, including people

– Strategy means the management of internal resources. The firm is a

bundle of resources that represent strengths and weaknesses. These

internal resources, and their configuration, determine firm performance

– The strategist’s job is to manage resources, develop them and ensure

that the firm has the capabilities to compete.

– Resources, especially managerial capabilities, which are not easily

copied by competitor organizations, are the real source of innovation and

value for a firm.

– It is resources, not products, which define firms: realizing this enables

growth and evolution, diversification and innovation.

Penrose

Vs


Q & A


20.10.2017 HS Fresenius – Dr. Marie-Kristin Franke

50

LINEAGES OF STRATEGY

(AND CURRENT TRENDS IN THE FIELD)


So far, so good…

…but what are origins of strategy making?

And what are current ideas?


Niccolò Machiavelli

Thomas Hobbes

Carl von Clausewitz

Lineages Of Strategy - Overview


Michavellian Leaders ?


Lineages of strategy – Machiavelli


• Good people and Good politican do not go hand-in-hand (It’s about the reality of politics)

• For Machiavelli power, conflict and war are at the centre of strategy.

• According to Machiavelli this includes:

• Sensing troubles and taking counter measures as soon as troubles are visible on the horizon.

• Realpolitik does not allow for too much pondering.

• A ruler ‘cannot, and must not, honor his word when it places him at a disadvantage and when the reasons for which he made his promise no longer exists’.

• Learn how to do good and how to do evil – sometimes leaders have to accommodate a little evil in order to do some good ‘dirty hand’ problematic

• To remain powerful is the highest priority; doing good or doing evil had to be determined by that overarching objective.

Policy follows power!

The Prince (around 1513)

https://www.youtube.com/watch?v=4WkLHhJJsFw


Machiavellian Strategy

• “If an injury has to be done to a man it should be so severe that his vengeance

need not be feared.”

• “It is much safer to be feared than loved because ...love is preserved by the link

of obligation which, owing to the baseness of men, is broken at every opportunity

for their advantage; but fear preserves you by a dread of punishment which

never fails.”

• “Never attempt to win by force what can be won by deception.”

• “The promise given was a necessity of the past: the word broken is a necessity

of the present.”

• “He who wishes to be obeyed must know how to command”

• “Never avoid war, because it can only be postponed to the advantage of others.”

• “Appearance is more important than reality”


• Hobbes posed a specifically normative question:

How might one envisage a society in which people could live together in peace and harmony?

• Hobbes’ answer was to imagine the biblical monster of the Leviathan as a sovereign who would rule the country with absolute power.

• People in a society would sign a contract that handed their power over to an artificial being (the Leviathan) who would from then on have a monopoly over power, including physical violence.

• The Leviathan would ensure that everyone would respect each other’s natural rights and property.

• Importantly, this freed the study of the state from religion and notions of the divine right of kings or God’s will.

Lineages of strategy - Hobbes

The Leviathan (1651)

Contract ensures order!


• Major contribution to military strategy.

• ‘War is merely the continuation of policy by other means’.

• What was essential, he argued, was to understand that before staring or entering into any field of combat one should have a very clear sense of what one was getting into before the inevitable ‘fog’ of war clouded one’s actions with a lack of clarity.

• Strategy belongs primarily to the realm of art, but is constrained by quantitative analyses of political benefits versus military costs & losses

Lineages of strategy - Clausewitz

On war (1832)

Never underestimate the role of the passions in strategy!

http://de.wikipedia.org/wiki/Datei:Vomkriege_cropped_grayscale.jpg



58

STRATEGY STYLES


Strategy thinking styles

Sou

rce:

Cle

gg e

t al

. (2

01

1)

– St

rate

gy T

heo

ry &

Pra

ctic

e -

Teac

hin

g M

ater

ial

Evolution

Revolution

Complexity



Sou

rce:

Cle

gg e

t al

. (2

01

1)

– St

rate

gy T

heo

ry &

Pra

ctic

e -

Teac

hin

g M

ater

ial

Evolution

Revolution

Complexity


• Evolutionary perspective argues that cognitive processes influences

the unfolding of strategy.

• In 1982, Richard Winter and Sidney Nelson wrote an influential book

called An Evolutionary Theory of Economic Change

• Deviating from the economics mainstream, and inspired by Simon’s

(1957) concept of bounded rationality, they chose ‘routines’ as their

unit of analysis

• Routines became the ‘DNA’ of their evolutionary model.

Evolution



Conesensus


The 10th Man


• Evolution’s key category is survival– surviving the competition for

resources, such as customers. Surviving as successfully as possible,

in terms of performance, is the key element in strategy, from an

evolutionary economics perspective

• Henderson (founder of BCG): Through differentiation and

specialisation a firm can create and occupy a niche and live

successfully in it

• Strategy is a deliberate search for a plan of action that will develop a

business’s competitive advantage and compound it.

Evolution’s key category




Sou

rce:

Cle

gg e

t al

. (2

01

1)

– St

rate

gy T

heo

ry &

Pra

ctic

e -

Teac

hin

g M

ater

ial

Evolution

Revolution

Complexity


• Unusual times require unusual strategies, suggests Gary Hamel

(1996), saying that ‘strategy is revolution; everything else is

tactics’

– What matters is being unique, different, and revolutionary,

overturning the industrial order, being ‘industry revolutionaries’.

Revolution




Sou

rce:

Cle

gg e

t al

. (2

01

1)

– St

rate

gy T

heo

ry &

Pra

ctic

e -

Teac

hin

g M

ater

ial

Evolution

Revolution

Complexity


• Complexity theory aids understanding of why strategy is never

complete

• It is not possible to have access to knowledge in its entirety because

the ‘entire knowledge’ is never stocked anywhere but is an emergent

property of interaction, as discussions of the distributed nature of

knowledge and the challenges it poses for organizational work

indicate.

Complexity theory



• Kauffman (1995) sees complex systems as living on the edge of chaos, having to choose strategically between preserving structure and responding to surprise

• Managers’ play a key role in creating chaos:

– Their interpretations of external complex environments may amplify, rather than control, the potential for strategic uncertainty

– They may fail to attend to relevant cues or clues and thus be caught out

• In a complex world of many cues it is often difficult to isolate what is significant and important; indeed, the status of events and stimuli often only becomes clear in retrospect – which is not much use for a prospective strategy!

Managing on the edge



And…

…complexity produces

wicked problems!

Wicked problems have many causes,

are hard to describe,

and their solutions are neither right nor wrong, only better or worse.

Terrorism, Global Warming

Wicked problems (1)


Characteristics of wicked problems

1. There is no definitive formulation of a wicked problem: they cannot be captured in a neat definition but are messy

2. Wicked problems have no stopping rule: the search for a solution never stops

3. Solutions to wicked problems are not true-or-false, but better or worse: evaluation is tricky as there is no absolute right or wrong – only more or less workable compromises

4. There is no immediate and no ultimate test of a solution to a wicked problem: unexpected consequences of solutions make evaluations a tricky task

5. Every solution to a wicked problem is a ‘one-shot operation’: because there is no opportunity to learn by trial-and-error, every attempt counts significantly

Wicked problems (2)



Characteristics of wicked problems

6. Wicked problems do not have an enumerable (or an exhaustively describable) set of potential solutions, nor is there a well-described set of permissible operations that may be incorporated into the plan

7. Every wicked problem is essentially unique: this means past experience does not help you to cope with it

8. Every wicked problem can be considered to be a symptom of another problem: wicked problems are entangled and related to each other, with no single root cause

9. The existence of a discrepancy representing a wicked problem can be explained in numerous ways. The choice of explanation determines the nature of the problem's resolution

10. The planner has no right to be wrong: although impossible to solve, planners will be held responsible for the potentially enormous consequences of their actions.

Wicked problems (3)



Can you think of any examples for wicked

problems?

?


Camillus (2008) defines four principles for managing wicked problems:

1. Stakeholder involvement is crucial. Making sense of the situation and agreeing the nature of the problem are paramount. Strategic conversations are a communication platform for these discussions

2. While the strategic plans for coping with problems will change, the organization’s sense of purpose and identity should not. ‘Who we are and what is our purpose’ is should be clarified before strategic plans are crafted. In this sense, identity precedes strategy

3. Focus on action. Because wicked problems are complex, we cannot think them through and then act on the results of our reasoning. Trial and error, learning, making experiments, adopting pilot programmes, and creating prototypes seem to be better ways forward than following grand plans

4. Feedback is not the best way to learn, as the name suggests, it feeds back onto something from the past. A ‘feed-forward’ orientation would scan the environment for weak signals.

Dealing with wicked problems




76

LIMITATIONS TO STRATEGY


• Everything has intended and unintended consequences

• Intended consequence may or may not happen, unintended always

do

The limitations of strategy

“stuff happens” (Donald Rumsfeld)



A surprise may be defined as any event

that happens unexpectedly, or any expected event

that takes an unexpected shape.

Surprises (1)



Surprises (2)


• Serendipity starts accidentally, when someone is looking for a

solution to a given problem – problem A – in the process, the person

notices something that will lead to the solution of a different problem

(problem B) that may be of even greater value

• Capturing serendipity – rather than letting it pass unnoticed is

essential to emergent strategy

Serendipity

81



THANKS A LOT!

Documents

©Arbeitsbereich Marketing & Innovation …...©Arbeitsbereich Marketing & Innovation Von-Melle-Park 5 • Raum 3071 • 20146 Hamburg Tel: +49 40 42838-9095 • Fax: +49 40 42838-5250