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TSS Responsive Strategy Bristol 29 November Martin Coates, Swissqual

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TSS Responsive Strategy Bristol 29 November Martin Coates, Swissqual

  1. 1. STRATEGY CASESTUDIESMartin Coates, Chairman SwissqualResponsive Strategy (Bristol)29th November 2011
  2. 2. Two messages• Define fail or change point in advance• Resources and strategy have to mix
  3. 3. Quick plug• Institute of Directors Chartered Director Programme
  4. 4. Define when you have failed• World is chaotic• Launch risks • Numerous• Business plan never actually happens • New knowledge once you start • Development always seems to take more resource• Define at what point strategy needs to change or be reviewed formally • Before you start • Not on the fly
  5. 5. Change example• 2 products • 1 new with latest technology, etc • 1 old, mature, incremental development, technically demanding• No skills in house so outsource new one • Staff de-moralised • Outsource partner doesn’t quite get it • Speed of reaction too slow• Strategy change-outsource old, invest in staff and develop internally • Decision to kill product once revenue dipped below a set level • Sufficient time to notify customers of end of life
  6. 6. Strategy on the fly• New owner meets major customer • Major customer demands many new things • New owner agrees• Highly contained maintenance level project becomes an unfunded development with no RoI• Can’t meet needs, customer now very dissatisfied, close down product
  7. 7. Resources Become the most respected and Vision profitable global Widget manufacturer BestStrategy customer service Increasing Profits Global Presence Most Best After Reduce Outsource Premium Reliable Sales Add Value unit Variable Acquire Grow Brand Pricing product Service costs costs Designers Operations Cust Serv Manf Procurement Marktg M&A Sales Marcom
  8. 8. Resources Become the most respected and Vision profitable global Widget manufacturer BestStrategy customer service Increasing Profits Global Presence Most Best After Reduce Outsource Premium Reliable Sales Add Value unit Variable Acquire Grow Brand Pricing product Service costs costs Designers Operations Cust Serv Manf Procurement Marktg M&A Sales Marcom
  9. 9. Resources Become the most respected and Vision profitable global Widget manufacturer BestStrategy customer service Increasing Profits Global Presence Most Best After Reduce Outsource Premium Reliable Sales Add Value unit Variable Acquire Grow Brand Pricing product Service costs costs Program Designers Operations Cust Serv Manf Procurement Marktg M&A Sales Marcom
  10. 10. Resources Become the most respected and Vision profitable global Widget manufacturer BestStrategy customer service Increasing Profits Global Presence Most Best After Reduce Outsource Premium Reliable Sales Add Value unit Variable Acquire Grow Brand Pricing product Service costs costs Program Designers Operations Cust Serv Manf Procurement Marktg M&A Sales Marcom
  11. 11. Buy v build• Market looks ready for consolidation • E.g. no real gorilla, several equal companies • Similar technical ability, core overlap with enhancements• Raise finance (v. easy)• Approach targets• BAU • Except we win technical part of bid every time
  12. 12. Buy v build• Strategy change-buy for market share only • IPR integration risk • Valuation consideration • Except we start to win long standing customers from competitors• Strategy change-organic growth • Low value “take it or leave it” offer • Increase R&D, expand marketing, price to kill
  13. 13. Summary• Plan for downside driven change• Resources vital in the mix

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