Cluster strategies

1. Cluster Strategies
and how to successfully combine Process Facilitation
and Development with winning Business
Strategies
Albert Solé
Eduard Ribas
13th TCI Global Conference
Competitiveness, Innovative clusters and Prosperity
DELHI, INDIA
December 1st 2010

2. Pg. 2
Knowledge
Auxiliary –
Raw Materials
Product/
Service
Market
Strategy
Services
Environment,
energy and
construction
Health
CIT and
knowledge
industry
Industrial
systems
Food &
mass
market
Design
industry
Waste
Cotton
Yarn
Food suppliers.
Automotive
plastics.
Machinery
Map. Metal
Software factories
Fine Chemicals
Industrial
Gastronomy
Agro
biotechnology
Process
Engineering
Human Biotech
Optical and
Photonics
Retail
Fashion
Habitat
Gourmet
Food service
Sports
Kid’s
Cluster
Intelligence
Transport
Systems
Digital content
Water treatment
Oncology
Construction
materials
Assistive
tech
Furniture
Shoes Textil
Wine
Fresh
Products
Vegetables
Home Textiles
Aerospace
Agriculture machinery
Rail
Enterprise Mobile SW
Seguretat informàtica
Medtech
Solar Power
Waste Management
Forwarders
CIT-Health
Contract Logistics
Port Logistics
CansMeat
transformation
Ceramic
OphthalmologyBio manufacturing
Higher education

3. Pg. 3| | # 3
What is a cluster? What kind of cluster?
Different perspectives !
Castellón de la Plana
Villarre
alBetxi
San Juan de Moro
Borriol
Villafamés
Nules
Onda
Alcora
Almazora
0-500
501-1000
1001-1500
1501-2000
2001-3000
3001-4000
4001-5000
>5000
Ribesalbes
Lucena
del Cid
Vall d’Uixó
La Pobla Tornesa
Figueroles
Azulejeras
Maquinaria
Fritas y esmaltes
Especiales y 3er fuego
Atomizadoras
Cluster
Management
Cluster InitiativeEconomic reality
Affiliate's Members
Cluster Manager
Cluster
Management
Organization

4. Pg. 4| | # 4
Castellón de la Plana
Villarre
alBetxi
San Juan de Moro
Borriol
Villafamés
Nules
Onda
Alcora
Almazora
0-500
501-1000
1001-1500
1501-2000
2001-3000
3001-4000
4001-5000
>5000
Ribesalbes
Lucena
del Cid
Vall d’Uixó
La Pobla Tornesa
Figueroles
Azulejeras
Maquinaria
Fritas y esmaltes
Especiales y 3er fuego
Atomizadoras
Cluster
Management
Cluster InitiativeEconomic reality
Affiliate's Members
Cluster Manager
Cluster
Management
Organization
But how do we use the cluster to help companies?
…and…. to do what?
What is a cluster? What kind of cluster?
Different perspectives !

5. Pg. 5
 Foster collaboration
among companies
 To set up innovative
projects
 To bring companies
together
 To generate start ups
 To set up a new club
or association
 Raise money
 …
What are we looking for?
| | # 5

6. Pg. 6
 Foster collaboration
among companies
 To set up innovative
projects
 To bring companies
together
 To generate start ups
 To set up a new club
or association
 Raise money
 …
What are we looking for?
| | # 6
What are
companies
looking for?

7. Pg. 7
 Foster collaboration
among companies
 To set up innovative
projects
 To bring companies
together
 To generate start ups
 To set up a new club
or association
 Raise money
 …
What are we looking for?
| | # 7
What are
companies
looking for?
Do they want
those things?

8. Pg. 8
 Foster collaboration
among companies
 To set up innovative
projects
 To bring companies
together
 To generate start ups
 To set up a new club
or association
 Raise money
 …
What are we looking for?
| | # 8
What are
companies
looking for?
Do they want
those things?
Do you think it is
the best way to
start?

9. Pg. 9
What are companies really looking for?
| | # 9

10. Pg. 10
What are companies really looking for?
| | # 10
PROFITS

11. Pg. 11
What are companies really looking for?
| | # 11
PROFITS
How do we
achieve this?
Why do we have
to use the cluster
for?

12. Pg. 12
Fine Chemicals Cluster in Catalonia
Universities
- UB
- UAB
- ÍQS
- ...
Tech transfer
centers
- Bosch i Gimpera
CROs
Lab Echervarne,
Larime, SGS
Intermediate
products
and raw materials
- Quimivita
- Panreac
Consulting/
SW/ Engineering
IMS Health, Telstar,
Master, IBM, ACI,
Equipment
manufacturers
- Bachiller
- Riera Nadeu
- Fauler
R+D+
Planta pilot
A+ (QF), UAB (biotech)
Administration (national, regional, local),
Distribuidors(dossiers
farmacèutics)Deltapharma,
Altaquimica,Impexquimica,
Globalquimia
Distribuidors
(intermitjos,
equipaments)
Quimidroga,Quimivita
Other Firms / start-
ups
Enantia
Venture capital, consultoring, lawyers
Incubators-
Bioincubadora
CIDEM-PCB Packaging/
IRM,
M.D.Etiquetado, ...
Logistics
Disalfarm, T2
Opelog, ...
Hospitals
Fundacions
ICS, Clínic, Sant Pau,
...
Contract
manufact.
QF, Farmacèutica
Asociations (Afaquim, Fedequim, Feique)
Combino-
Pharm,
Esteve
Farma,
Lab Ferrer,
Uriach, ...
Fine chemicals pharma companies
Uquifa, Urquima, Moehs, Medichem, Biochemie,
Kern pharma, Bioibérica, Esteve Química,
Farmahispania, Menadiona, Merck, Infar, Salvat,
Ranke, Boehringer, DSM, Farma-Lepori, SP-
Quimica, Interquim, LEBSA,Bioquim, Industrias
GMB...
R+D Aprov Prod D&S
Farmàcies
Parafarmàcies
Gran consum
...
Hospitals and
health centers
Venda a
distància
Empresa
Farmacèutica
distributors
(iPBMaUSA)
Consultors
IP

13. Pg. 13| | # 13
Strategic Analysis Change Process
 Define the cluster PROPERLY
 Deep understanding of the
business and its trends
 Profitability, margins
 Competitors
 Strategic options [KSF]
 Analysis of the environment
 Fostering sector buy-in
 Motivate companies to participate
 Challenge conventional wisdom
 Open up their mentality
 Provoke a paradigm shift
 Identify winning business models
 Leadership, responsibilities
Cluster Strategic Development Projects
The two cornerstones in our methodology

14. Pg. 14| | # 14
Cluster Initiative Methodology
1. Cluster Mapping-Cluster Value System
2. Strategic Segmentation
3. Segment Attractiveness' Evolution
(5F’s)

15. Pg. 15| | # 15
?Shoe Industry

16. Pg. 16| | # 16
?Shoe Industry
SAFETY-
PROFESIONAL
FASHION SPORT

17. Pg. 17
| | # 17
Successful strategies in the food industry sector
Consolidated
distribution
Hotels-
restaurants
BRANDED PRODUCT
DISTRIBUTOR’S
BRAND
PRODUCER
DISTRIB
SERVICES
FOOD
SERVICE
RETAIL
+ Brand
- Brand
GOURMET
Traditional
retailer
SPECIALIST
RETAILER

18. Pg. 18
?Fine Chemicals Industry
“order based manufacturing process, low volumes, value
added product”

19. Pg. 19
?Fine Chemicals Industry
“order based manufacturing process, low volumes, value
added product”
COSMETICS
PHARMA
AGROCHEM
PARFUM
…

20. Pg. 20
PRODUCERS SERVICE
PROVIDERS
CARRIERS
Company Typology
Solar Power Cluster

21. Pg. 21
PRODUCERS SERVICE
PROVIDERS
CARRIERS
Company Typology
Solar Power Cluster
BIG
PROJECTS
ROOF
PROJECTS
OTHER
Business
to Investor
(B to I)
STRATEGICSEGMENT
B2B
B2C

22. Pg. 22| | # 22
Cluster Initiative Methodology
1. Cluster Mapping-Cluster Value System
2. Strategic Segmentation
3. Segment Attractiveness' Evolution
(5F’s)
4. Buyer’s Purchase Criteria
5. Strategic Options Screening
6. Value Chain Analysis-Critical Success
Factors (CSF)
9. Porter’s Diamond
Analysis
7. Future Vision-Key Strategic Options
8. Internacional
Benchmarking (Bench
Tryp)
10. Action Plan

23. Pg. 23
38 48
72
126
203
176
11 6
23 32
51 55
5 8 10 14 19 11
37 33 25
39 34 37
0
30
60
90
120
150
180
210
240
2000 2001 2002 2003 2004 set-
2005
INDIA
China
Catalonia
Italy
Source: FDA Drug Master Files
Approved Drug Master Files (DMFs
Type II - FDA
India’s leading position in fine chemicals innovation

24. Pg. 24
Benchmarking trip to India
(M$; 2004) Turnover EBITDA Market cap. Mktcap/TO Mktcap/EBITDA
Suven Life Scie 12 26% 46 3,7 15,4
Wanbury 16 22% 29 1,8 8,3
Neuland Lab 34 13% 2 0,1 0,5
Hikal 41 28% 194 4,7 16,8
Divis Labs 76 35% 413 5,4 15,4
Unichem Labs 77 20% 194 2,5 12,6
JB Chemicals 79 22% 157 2,0 8,9
Alembic 115 18% 192 1,7 9,3
Matrix Lab 142 29% 728 5,1 17,9
Biocon 142 37% 1.084 7,6 20,6
Ipca Labs 153 20% 230 1,5 7,7
Aurobindo Pharm 255 11% 469 1,8 17,3
Jubilant Organosys 257 19% 633 2,5 12,8
1.400 21% 4.372 3,1 14,5

25. Pg. 25
Is it possible to develop these KSF’s in Catalonia?
R+Dq Prod. Q R+Dq Prod. F MKT
200-500
recerc.
15-30 DMF /
Yr
>8 facilities ANDA’s
Aprov.: 4-10
2-4 facilities Sales offices
in different
countries
150-300
recerc.
10-15 DMF /
Yr
5-8 facilities First ANDA’s
approved.
1-3 facilities
Matrix
(Docpharma)
50-150
Recerc.
10 DMF / Yr
4-6 facilities --- --- ---
20-50
reserachers.
New 5 DMF
/ Yr
2-4 facilities --- --- ---15-35 M$
35-100 M$
90-150 M$
200-250 M$
Average company
from catalan cluster
Font: Entrevistes realitzades i dades publicades per part de les empreses

26. Pg. 26| | # 26
COMPETITIVENESS
CLUSTER
STRATEGY
Statistical orientation vs.
business industry focus
Business attractiveness
and competitive advantage
BUSINESS SEGMENT
Key points of our
“philosophy”
The goal
“The Meeting Point”
Between policy makers & companies to talk about
future plans and requirements

27. Pg. 27| | # 27
Process
Management
STRATEGIC
OPTIONS AND
FUTURE VISION
CURRENT SITUATION,
AND BUSINESS
CHALLENGES
1st MEETING
WORKING GROUPS (WITH
COMPANIES AND KEY
ENVIRONMENT INSTITUTIONS)
INTERVIEWS (ENVIRONMENT)
STRATEGIC ANALYSIS
REFERENCE TRIP
INTERVIEWS (SPECIALLY
CUSTOMERS AND EXPERTS)
STRATEGIC ANALYSIS
INTERVIEWS WITH
COMPANIES
STRATEGIC
ANALYSIS
2nd MEETING
5-6 MONTHS
ACTION PLAN
3rd MEETING
Cluster Initiative Methodology

28. Pg. 28
 Define accurately your cluster!
 Define the goals in terms of what the companies have
to do in order to have higher profits!
 Convince them! Reach strategic conclusions !
 Define the right action plan to achieve them! Be
concrete! Be focused!
 Choose the right cluster manager!
Conclusions
| | # 28

29. Pg. 29
www.cluster-
development.com
EsadeCreapolis
Avenida de la Torre Blanca, 57
Sant Cugat del Vallès 08173
Barcelona, Spain
+34 93 587 86 36
International contact
Albert Solé, International – albertsole@cluster-development.com
Eduard Ribas, Partner – eribas@cluster-development.com
Business dynamics change, new successful
strategies emerge… the way we work with
clusters must evolve too