4. Business Issue
• Industry Life Cycle
– Potential loss of market share
• Timing of entry
vs.
Time to market( Capabilities?)
Dynamic!!
• When to enter the market?
– Leaders vs. Followers
– Validation of Market (Market/Demand uncertainty)
– Market Readiness
– Market Segmentation & Selection
4
8. Research Paper-1:Adapting to Fast Changing Markets &
technology(George S. Day & Paul J.H. Schoemaker)
Dynamic
Capabilities
Sensing
Peripheral
Vision
Vigilant
Learning
Seizing
Probe & Learn
Flexible
Investing
Transforming
Organizational
Re-Design
External
Shaping
Theory
• Identifies 3 components as critical for
successful organisation adaption :
-Sensing
-Seizing
-Transforming
• Embryonic contingency model
illustrating relative importance of
dynamic capabilities across firm.
Business Context
•Apple Iphone
•
Day & Shoemaker (2016)
10. Research Approach
•Research Objective:
―To link Organisation’s internal resources and capabilities to take
leverage of market insight before its competitors.
•Selection:
—Srivastava, R. K., Fahey, L., & Christensen, H. K. (2001). The resource-
based view and marketing: The role of market-based assets in gaining
competitive advantage. Journal of management, 27(6), 777-802.
•Justification:
—Demonstration of how market-based assets and capabilities are
leveraged via market-facing to build durable competitive advantages.
Journal Ranking: 4 (Cranfield listing of Journal rankings )
The Selected article fits in the scope of our research objective 10
12. Theory
• Discuss the importance of market-
based assets and capabilities to take
the advantage of market and ultimately
helps in delivering superior customer
value & so the competitive advantage
• Focused on how RBV can help in
generation and sustainability of customer
value.
•Nike
Research Paper-2: The resource-based view and marketing
(Srivastava, R. K., Fahey, L., & Christensen, H. K.)
Sustaining Customer
value and
competitive
advantage
Value Extraction and
Financial
performance
Relational
Market
Based
Assets
Investment in Market
Based Resources
Marketing
Specific
Resources
Creating Customer value
Based Processes
Product Innovation
Management
Intellectual
Market Based
Assets
Srivastava, Fahey & Christensen (2001).
17. Case Study- Problem Statement Slide
Technology roadmap
missing
Intel Durable competitive advantage ? 17
18. Case Study- 1 Solution to problem
• Intel as a giant company is Adapting to Fast-Changing Markets and
Technologies
• Linking theory to Intel’s case
• Intel’s CEO Dr.Herman needed to
enhance Intel’s Wireless products especially
4G LTE Mapped to Dynamic Capabilities/
Sustaining Customer value and
competitive advantage
• Intel searched for cutting edge wireless
solutions provider to accelerate its effort
and time to market mapped to Sensing
• Intel’s acquisition to SysDSoft to be an integral part of its strategy
mapped to Seizing/ Relational Market Based Assets
1ST Framework
2nd Framework
18
19. Case Study- 1 Solution to problem
• Intel’s engineering team working with 100 Egyptian engineer with a
Center of Excellence Site based in Cairo for operations alignment mapped
to Transforming
• Intel value extraction and financial performance
1ST Framework
2nd Framework
19
20. Intersection of case study &framework
Dynamic
Capabilities
Sensing
Peripheral
Vision
Vigilant
Learning
Seizing
Probe & Learn
Flexible
Investing
Transforming
Organizational
Re-Design
External
Shaping
20
Sustaining Customer
value and
competitive
advantage
Value Extraction and
Financial
performance
Investment in Market
Based Resources
Marketing
Specific
Resources
Creating Customer value
Based Processes
Product Innovation
Management
Intellectual
Market Based
Assets
Relational
Market Based
Assets
Srivastava, Fahey & Christensen (2001).
Day & Shoemaker (2016)
22. Bibliography
• Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of
management, 17(1), 99-120.
• Day, G. S., & Schoemaker, P. H. (2016). Adapting to Fast-Changing arkets and Technologies.
California Management Review, 58(4), 59-77.
• Essays, UK. (November 2013). International Strategy Of Nike In India Marketing Essay. Retrieved
from https://www.ukessays.com/essays/marketing/international-strategy-of-nike-in-india-
marketing-essay.php?cref=1
• Helfat, C. (2013). How Apple and IBM Learned to Change With the Times. USnews.com. Retrieved 5
April 2017, from https://www.usnews.com/opinion/blogs/economic-
intelligence/2013/07/02/apple-and-ibm-show-the-power-of-dynamic-capabilitie
• Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated
approach. Cengage Learning.
• Johnson, K., Li, Y., Phan, H., Singer, J., & Trinh, H. (2012). The Innovative Success that is Apple, Inc.
• Intel Acquires Egypt-based SySDSoft. (n.d.). Retrieved March 30, 2017, from
https://newsroom.intel.com/news-releases/intel-acquires-egypt-based-sysdsoft/
• Intel buys Egyptian communications startup | EE Times. (n.d.). Retrieved March 30, 2017, from
http://www.eetimes.com/document.asp?doc_id=1258928
• Nike News - The official news website for NIKE, Inc.. (2017). Nike News. Retrieved 7 April 2017, from
http://www.nikebiz.com
• Srivastava, R. K., Fahey, L., & Christensen, H. K. (2001). The resource-based view and marketing: The
role of market-based assets in gaining competitive advantage. Journal of management, 27(6), 777-
802
• Team, H. (2011, May 13). Intel acquires Egypt-based SySDSoft HWlab. Retrieved March 30, 2017,
from https://hw-lab.com/intel-acquires-egypt-based-sysdsoft.html
22
Editor's Notes
As industry grows along the S-curve, there is a continuous market share loss with contribution of different customer segments (innovators of 2.5% , Early adopters 13.5%, Early Majority 34%, Late Majority 34%and Laggards 16%).
Timing of entry is a strategic decision to follow the company’s road map but time to market is a capability of the firm to have the expertise and resources to enter the market within the time frame(New product launch process from concept to first sales) .
Another strategic choice is whether to be a pioneer and follower.
The validation of market for the developed technology is another crucial aspect to decide time of entry and understand the market readiness is another aspect.
Segmenting the market on the parameters of demographics, geographic and matching the right technology with right segment can generate sustainable profite and acquisition of high market share.
Resource based view : Organization is perceived as bundle of resources. The core-competency is the unique and imitable competency (originated from resources and capabilities) within organization that leads to the competitive advantage and superior profitability than its competitors.
In an era of Java and Symbian phone with some basic fetures like camera and MP3 player ,apple sense that market needs something more ,something better . At that time company wasn't a technological leader, but it has proven masterful at marketing technologically-based products to consumers and developing features that people value. What they have done is they sense the market ,seize it and transform ultimately in the form of IPhone .
Whenever company sense the opportunity with respect to timing of entry in market ,peripheral vision is very important at initial level as it deals with up to what extent company knows about market .vigilant learning is all about ,whatever the inputs we are getting from the market analysis ,how well we can implement it from learning perspective so as the probe and learn .it is very important to work on the insights you are getting from the market research or observation as it affects your product and so the timing of entry in the market. furthermore flexible investing mainly deals with the investment mechanism ,suppose if you will find some flaws in process ,then in such circumstances our investment should be flexible or we can even say agile to make it change and adapt as per situation. In product development, the minimum viable product (MVP) is a product with just enough features to gather validated learning about the product and its continued development. These all aspects are critical ,when we are discussing the seizing.
Lastly in case of transforming ,what's the most important thing is try to transform your research and ideas into product at perfect time ,just analyse the market critically and if you find your target market is ready for your product ,just launch it to gain the competitive advantage over your competitors .in this process organizational redesigning is very important aspect. We should make our resources, our team more efficient by following some innovative approaches and making the changes wherever required. In the end, once you have launch your product in the market ,external shaping comes in to the picture as it deals with the brand image or perception of your product with respect to your target customer market, as what they think about your product or brand. It’s very important and critical as well ,especially when we are discussing timing of entry as it’s quite easy to create a kind of impression at the beginning itself and makes the same throughout the product life cycle to attain a position in the market and remain a key player of respected segment.
https://studio.stupeflix.com/v/ENJMGiL5IQUP/?ga_session=video-ready-email&autoplay=1
Marketing specific research is very important when we are dealing with Timing of entry of the new product . Investment we can divides it into 2 types as intellectual market based assets and relational market based assets . Relational market based assets mainly deals with relations we are maintaining with the companies with whom we are having business relations likewise in our example Nike ,a company with big and loyal customer base teaming with Hewlett-Packard to supply hardware ,software and consulting services to host the worldwide Nike supply chain (NSC)Project. For Nike timing of entry was critical aspect and they have overcome different barriers as having strong tie-up with partner companies and having good business relations.
For every company, Intellectual market based assets are very important as they are the key players ,who helps in search and exploration process of relational market based assets and if your intellectual market based assets are not efficient then obviously it’s surely going to affect your overall performance ,especially when you are new in market, this aspect is highly critical for your company. In the end overall results into the sustaining customer value and so the competitive advantage in the market that helps in improved financial performance. If suppose ,company found that they are lagging in certain areas (scope of improvement) then in that case they can again reinvest on market based resources by following this framework and ultimately improve the overall financial performance of the company and the cycle continues.
Commonalities : Both theories/framework follow SWOT Framework (Barney,1991) . Shaping internal organisation to leverage opportunities and counter threats in the external environment.
Differences: Suppose Company 1 is following 1st framework as per research paper-1 and company-2 is following 2nd framework as per research paper -2 . So both the companies would have their highlights and downside.
Overall company 1 would have ‘ Outside-in’ prospective /orientation whereas company 2 would have ‘Inside –out’ orientation.
Intel Technology roadmap was focused to provide the most cost-effective 2G/3G single-chip platforms and to offer best-in-class 3G/4G slim modem with lack of focus on 4G Technology
Intel competitive advantage was at risk as a market leader innovative semiconductor products and solutions for wireless communications
Dr. Hermann Eul, president of Intel Mobile Communications. “Intel is making the necessary investments to further enhance its existing world-class wireless product portfolio and to offer the most reliable platforms to our customers that will work seamlessly across a range of global networks. The acquisition supports this strategy and we believe that SySDSoft’s proven and experienced engineering team, combined with Intel Mobile Communications’ existing wireless strength, positions us well for continued growth in LTE.”
SySDSoft’s solutions enhance Intel Mobile Communications’ existing multi-communications portfolio, specifically accelerating its 4G LTE efforts with the addition of leading software development and design capabilities. Intel Mobile Communications is an integral part of Intel’s strategy to accelerate always-connected computing platforms founded on energy-efficient performance, Internet connectivity and security, and spanning a variety of device and market segments, including laptops, cars, smart phones, tablets and TVs.
"The acquisition of engineering and design talent from an Egypt-based company in the field of cutting-edge wireless and communication technology is the first of its kind for Intel in the Middle East," said Arvind Sodhani, president, Intel Capital and executive vice president, Intel.