tim hw 4
cse171A .4.pdf
TIM 105/205 CSE 171A, Lecture #4 (10/8/19) Agenda
City lecture the I/M competitive analysis (Done see above) 1. Functional Maps (HW#2, prob. 1) 2. HW #2, prob #2 (Intel) 3. Project proposal meetings: Tuesday, Wednesday 4.
2. Functional Maps (HW #2, prob #1) Refer to the disk-drive industry handout Context: Example: Fig 1.7 - Functional map of hard-disk capacity (MB) - shows the evolution of a key performance parameter: capacity (MB) - shows how technology “supply” (capacity, MB) is always significantly greater than market “demand”. - this functional map would be useful for the “engineering” function in the company: setting performance targets; marketing decisions about migrating to new geometries (14 inch -> 8 inch -> ...)
Tt Industry Computer Industry
diskdrive microprocessor Industry Indisey Rwb411 lamb 4
cse171A .3.pdf
Definitions
Function refers to organizational functions: Engineering, manufacturing, marketing, ... 1. Each of these functions has important dimensions 2.
for example, the key dimensions of engineering are product performance, critical skills... 3. Structural Analysis of industry (aka competitive strategy analysis Competitive strategy comes from “the positioning school” (porter = 1980) Terminology: Industry: the set of players for some technology or product type e.g. disk-drive industry, consumer electronic industry, health-care industry... Players (in) the industry: competitions, new entrants, substitutes, suppliers. Market: Buyers (or customers) of the product/service Forces: micro-economic forces that exist among the players Company (or firm or enterprise ) : companies are embedded in the industry of interest. Porter asked the following questions:
Def. of the problem 1. Example: The personal computer industry = 1980s 2. Plan or process: 5 step process
Creat a structural map of the industry/market (I/M) landscape in which the company of 1. interest is embedded. Perform a five (or six) forces analysis of the I/M landscape (structural analysis) 2. Determine the attractiveness (as measured by the profit potential, in particular, the return on 3. invested capital [ROIC]) of the industry Determine or decide on the company’s position or competitive strategy 4.
Tech Company
Functions Engr Mant Marketing
Demensions tertiaryp Cole Inahodtrevenue
fun.tn features
Example Companie Function Dementh
Intel Engineering Performance Function
map chip Density
how attractive is an industry from the viewpoint of the • player? What position or competitive strategy should a • competitor (in the industry) adopt?
What are the relationships between the players in the I/M landscape? 5. 3. Execution of the plan: e.g. PC industry in the 1980s execution of Step 1,2 in the plan Step 2: perform a five (six) forces analysis of the industry/market structure Process: -for each force, there are a set of determinants that affect the intensity (or strength) of the the force Example : Force F1 (Rivalry between the competitors) is affected by the concentration (# of competitors), size ($),... - A list of the determinants for each of the five forces is given in table 1 of “LNCS”. - for each force, determine the qualitative strength (high, medium, low) of the force based on the determinants in Table 1, column 2. Table 1, column 3, shows the qualitative strength for each of the 5 forces for the PC industry in the 1980s Step 3: Determine the attractiveness of the industry as a whole: Qualitative: H,M,L Def: the attractiveness (i.e. profit potential measured by the ROIC) of the industry (e.g., the PC industry) is determined by the cumulative (or total) strength of the 5 forces. if the cumulative (total) strength of the 5 forces is high, then the industry is not attractive of (say) a new entrant. Example: from Table 1 which shows the qualitative strength of each forces (column 3), the cumulative strength of the PC industry in the 1980s. Is “medium to high”
Competitors Inelek Industry Newentrance IBM Compay Hp
I take
Supplierpower
f2 L suppliers Competitive Buyers Microprocessors consumersForces2112 enterprisesIntAMD 1
RivalrybetweenGmletHtm operatingsystem 14 u
Foreszles 45Microsoft threatofNewenthnes storage Seagate y Hitler4Substitutes I 16 13
Buy Complemeneors Substitutes
Thepower to er powerosmarutaelor penComputing GoApple Influence Softwaremanufacture appAlpalm
Microsoft
Step 4: determine or decide on the company’s position or competitive strategy to compete successfully in the I/M landscape Process: According to porter, for a company to be successful in a particular industry it must adopt one (& only one of the following three strategies: - differentiated strategy ( describe if for yourself) - cost leadership - focus - stuck-in-the -middle Comment: competitive strategy is dynamic (evolutionary) -> companies change their CS (competitive strategy) with time -> the creation all of functional maps guides the evolution of strategy.
a product low costuniqueproduceasprecedbyCustomer
make wide differentiated case leadership
Target strategy D market
Focus
yammer segment
not relomerdoom
PC industry (of the 1980s) is (probably) not attractive to new entrants & substitutes.
Create a 2 - dimensional grid product dimension, which has 2 extremes •
unique product as perceived by the customers, differentiated by aspect such as ◦ quality (additional features), reliability, user - interface, ... Lowest cost ◦
Market dimension (or target market for the product), which has 2 extremes: • A product for the entire market ◦ A product for a particular segment (focus) ◦
Step 5: Determine the relationships between the different set of the layers in the I/M landscape. Example:
The intel case study (HW #2, Prob #2) what relationship did intel (the competitor in the micro processor industry) have with its • supplies?
Single sourcing ◦ ... ◦
What relationship does intel have with its buyers (i.e. computer manufactures) • E.g. “intel inside” ◦ ... ◦
cse171A .2.pdf
10/1
Agenda
1 HW 1 (due on Thursday)
2 Project: Preliminary Proposal (due on Oct 3)
3 Project teams
HW1
Preliminary Instructions
1. Develop a plaining habit
—Create a plan (when, how long…)
—Submit the plan
2. Develop a structured problem-solving habit
—Download the SPSP handout from Canvas
—Every time you solve a problem, “copy & paste” the handout into your problem
solution
—Decide which sub-step(for each primary step) are relevant to the solution of
your particular problem => Customize the SPSP for your particular problem
HW1, Prob #1
Problem as given: “Improve the existing cell-phone”
=> vague, open-ended problem statement
Apply the SPSP to this problem
Step 1: Define the real problem(s) (requires reflections, thinking, asking questions)
Establish sub-problems(SPs)
SP1: Establish customer needs that all (generic) cell-phones should satisfy
SP2: Assess existing cell-phone products /services to determine how well these customer
needs are satisfied
SP3: Identify(generate) ways (or solutions) to improve existing cell-phones
with respect to a customer needs(from SP1) & assessments(from SP2)
Step2: Create a Plan
(a) Assumptions
Who am I? perhaps, an engineer or a marketing analyst at a cell-phone company,
like Apple, Samsung,..
Who is the solution for? for the new product development team,… CTO, CEO
Which type(manufacturer) of cell-phone should you focus on? Obvious (ex:the
one which you own)
(b) What information do I need
—how cell-phones work => functions & needs of the cell-phones & how they are
realized
—Other (?)
Create a plan for solving each sub-problem(SP)
SP1: Establish needs …
—how cell-phone work
—Internet research
—List of customer-needs(functions, features)…
— Ҙ
SP2: Assess how well …
— your own experience
— Internet consumer research
—customer survey
SP3: Improve..
—research (internet)
—structured brainstorming
— …?
Step 3: Execute the plan
5~8 hours of work
How should I present my results?
Table?
example:
Step 4: Check your work
Reflect on your results, ask questions,…
Step 5: Learn & generalize
—about cell-phones & improving them
—yourself as a problem-solver
Needs Assessment
ease of use
performance
reliability