Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
How does Kim and Mauborgne’s business plan standard compare to the approach to strategy in the textbook?
Kim & Mauborgne (2000) offer a customer-focused approach to creating a business plan that first begins with a buyer utility map, or an assessment of how the new business idea aligns with the actual needs of customers and what customers perceive as useful. The second tool or the price corridor mass focuses on what is the best price to generate buyers. The third tool, the business model guide, determines if the idea can be delivered at this optimal price point.
Thompson (et al. 2013) instead uses Porter’s generic strategies to define how to create a business plan in a non-sequential fashion. These generic strategies include cost leadership by offering the lowest possible price on a product versus competitors, a differentiated strategy in which the product satisfies a unique need that no other competitor can, or a focus strategy upon a relatively narrow segment of buyers. The focus of Thompson (et al. 2013) is on the positioning of the product in relation to competitors. Kim & Mauborgne (2000) are less interested in the competition and more on whether buyers’ needs are being met; the idea is to find the ideal price so competitors cannot easily produce comparable imitations at a lower price point, to “identify where the largest groups of potential customers are and what prices they are prepared to pay for the products and services they currently use” (par. 23).
Both authors stress the need for strategic pricing within the industry and producing a product that is different enough to satisfy the customer’s desire for additional value. Kim & Mauborgne’s (2000) methodology is suggested for use for all products and organizations, while the classic textbook strategy using Porter’s generic strategies offers a different positioning technique depending upon the nature of the product, the industry, and the feasibility of a price-focused, differentiated, or niche approach.
References
Kim, W. & Mauborgne. R. (2000). Knowing a winning business idea when you see one. The Harvard Business Review. Retrieved from: https://hbr.org/2000/09/knowing-a- winning-business-idea-when-you-see-one
Thompson, A., Peteraf, M, Gamble, J., & Stricklannd, A., (2013). Crafting & executing strategy: The quest for competitive advantage: Concepts and cases, (20th edition). New York, NY: McGraw-Hill.
Business Plan for a Concrete Polishing Company Business plan for establishing concrete polishing company in Sydney Australia Concrete polishing company, Sydney, plans to become a leader in providing concrete polishing services in the city. The company plans to do this by having the best facilities and human resource with experience in the industry. Plans are set to counter competition from existing companies by a continuous improvement of processes. Measuring standards of performance
Business Plan for a Financial Divorce Software Business Plan Divorce Software Business Plan relating to the Sales of a new Financial Divorce Software. Business Plan relating to the Sales of a new Financial Divorce Software F F1 F2 F3 G1 G1(a) G1(b) G1(c) Business Identification Keys to Success Company Summary Industry History Legal Form of Ownership Location and Facilities Management Structure Products and Service Market Analysis Target Market Industry Analysis Competitive Analysis Market Strategy Ps of Marketing Price List Selling Strategy Sales Forecast Implementation Strategy Overall Strategy Implementation Control Plan Financial Statements and Projections Revenue and Cost Estimate Forecasted Profit and Loss Statement Forecasted Balance Sheet Financial
Business Plan This is a business plan of Scarves Unlimited. The business will be a partnership business between Andy, Brandy, and Savanna. The partners of the business intend to improve business operations, and ensure there is increased productivity in the business. Therefore, this business plan will clearly illustrate how the business plans to operate, market its products and services and introduce technology in its operations. This is aimed at ensuring the
Business Strategies Coca Cola Company Case Analysis Strategy Recommendation in Business The Coca Cola Company (Case Analysis) The Coca cola Corporation is among the most successful and well-known company in the globe. Its reputable existence is analyzed with its performance and efficient management. The company has dominated and controlled the beverage industry for many years, and has often proven its abilities in innovation, creativity and consumer satisfaction. The company has also set extremely high
Aligning IT with Business Objectives Companies of all sizes and types are faced with the challenges that are involved in optimizing the use of their information technology (IT) resources by aligning these assets with their business objectives, but many companies are finding the process more challenging than was first believed. In some cases, the business objectives are too nebulous to develop appropriate IT support, while in other cases, top management may
SAFETY Importance of Multilateral Continuity Planning Safety- Importance of Multilateral Continuity Planning Many business entities are joining the corporate world for immense investments. These pertains business operations that are effectively run through hierarchical systems in various managerial departments for the achievement of optimized business operations. This, therefore, calls for the best managerial methodologies in the business, human resource and disaster management. The later is the most essential in managing a business as it