Go-to-Market Agility –A Source of CompetitiveAdvantagePekka MattilaGroup Managing Director         Finnish Business Counci...
Three forms of agility (Sull 2010) 1. Strategic 2. Portfolio 3. Operational   • Go-to-market operations                   ...
1.Go-to-MarketAgilityPekka MattilaAalto UniversityExecutive Education
Channel system choices (Lambrecht 2010)      Direct channel   Indirect channel         DirectOwn                          ...
Go-to market strategies and distribution•       Alternatives: penetration vs. skimming•       From masses to few    •     ...
Go-to market strategies and distribution                          Company    Customer   Retailer         Wholesaler       ...
2.Entering NewMarketsPekka MattilaAalto UniversityExecutive Education
Direct channel• Digital revolution   • Sudden rush of luxury brands   • Imitating physical store experience• Shop-in-shops...
Page 912.12.2011            Pekka Mattila
Direct channel• Destination management• Efficient organizing of support functions• Dangerous replicas of the headquarter o...
Outsourcing and indirect channel• Developing a partner network   • Question of exclusivity   • Interest in locking in   • ...
Outsourcing and indirect channel• Different ambitions• Adequate sense of urgency• Remedies for (financial) risk management...
Go-to-market considerations in Asia• Importance of endorsements• Credibility of the chosen partner• Potential of word-of-m...
3.IntroducingNew OfferingsPekka MattilaAalto UniversityExecutive Education
Caze Zara• The world’s largest apparel retailer  (overtook Gap in 2008)• New collection every two weeks   • Drives store v...
Caze Zara• ”In the summer of 2007, for instance, Zara introduced a  line of slim-fit clothes, including “pencil” skirts in...
Downside of agility?• Pressure to reduce/shorten time-to-market  • Gauging immediate market feedback and response  • Recov...
Go-to Market Agility –A Source of CompetitiveAdvantagePekka MattilaGroup Managing Director         Singapore 12.12.2011Adj...
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Go-to-Market Agility – A Source of Competitive Advantage

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Dr Pekka Mattila's presentation at Finnish Business Council in Singapore on December 12, 2011.

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Go-to-Market Agility – A Source of Competitive Advantage

  1. 1. Go-to-Market Agility –A Source of CompetitiveAdvantagePekka MattilaGroup Managing Director Finnish Business CouncilAdjunct Professor of PracticeAalto University Singapore December 12,Executive Education 2011
  2. 2. Three forms of agility (Sull 2010) 1. Strategic 2. Portfolio 3. Operational • Go-to-market operations Page 2 12.12.2011 Pekka Mattila
  3. 3. 1.Go-to-MarketAgilityPekka MattilaAalto UniversityExecutive Education
  4. 4. Channel system choices (Lambrecht 2010) Direct channel Indirect channel DirectOwn Vertical channel integration IndirectBuy Outsourcing channel Page 4 12.12.2011 Pekka Mattila
  5. 5. Go-to market strategies and distribution• Alternatives: penetration vs. skimming• From masses to few • Intensive distribution – Majority of resellers stock the product and price competition may be evident • Selective distribution – Intermediate choice • Exclusive distribution – Only handpicked resellers or authorized dealers are allowed to sell the product Page 5 12.12.2011 Pekka Mattila
  6. 6. Go-to market strategies and distribution Company Customer Retailer Wholesaler Wholesaler Customer Chances Distributor Retailer for agility? Customer Retailer Customer Page 6 12.12.2011 Pekka Mattila
  7. 7. 2.Entering NewMarketsPekka MattilaAalto UniversityExecutive Education
  8. 8. Direct channel• Digital revolution • Sudden rush of luxury brands • Imitating physical store experience• Shop-in-shops• Pop-up stores Page 8 12.12.2011 Pekka Mattila
  9. 9. Page 912.12.2011 Pekka Mattila
  10. 10. Direct channel• Destination management• Efficient organizing of support functions• Dangerous replicas of the headquarter organization Page 10 12.12.2011 Pekka Mattila
  11. 11. Outsourcing and indirect channel• Developing a partner network • Question of exclusivity • Interest in locking in • Incentive mechanisms• Future of franchising? • Subway Page 11 12.12.2011 Pekka Mattila
  12. 12. Outsourcing and indirect channel• Different ambitions• Adequate sense of urgency• Remedies for (financial) risk management• Issues of brand management• Issues of IPR management Page 12 12.12.2011 Pekka Mattila
  13. 13. Go-to-market considerations in Asia• Importance of endorsements• Credibility of the chosen partner• Potential of word-of-mouth Page 13 12.12.2011 Pekka Mattila
  14. 14. 3.IntroducingNew OfferingsPekka MattilaAalto UniversityExecutive Education
  15. 15. Caze Zara• The world’s largest apparel retailer (overtook Gap in 2008)• New collection every two weeks • Drives store visits• From an idea into a design in six weeks • Industry standard 5-14 months Page 15 12.12.2011 Pekka Mattila
  16. 16. Caze Zara• ”In the summer of 2007, for instance, Zara introduced a line of slim-fit clothes, including “pencil” skirts in bright colors. Daily sales statistics revealed that the items were not selling but shed no light on why. Zara marketing managers visited the stores to explore the situation in person and learned that women loved how the slim-fit clothes looked but couldn’t fit into their usual sizes when they tried on the garments. Armed with this insight, Zara recalled the items and replaced the labels with the next sizes down. Sales exploded.” (Sull 2010) Page 16 12.12.2011 Pekka Mattila
  17. 17. Downside of agility?• Pressure to reduce/shorten time-to-market • Gauging immediate market feedback and response • Recovering the investments quickly • SCRUM • Beta versions• Time-to-market and quality • Skipping steps leads to compromised Page 17 product (line) quality? 12.12.2011 Pekka Mattila
  18. 18. Go-to Market Agility –A Source of CompetitiveAdvantagePekka MattilaGroup Managing Director Singapore 12.12.2011Adjunct Professor of PracticeAalto UniversityExecutive Education

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