The Choice of Strategy Product Leadership Cost Leadership Customer Intimacy
Product Leadership To pursue a strategy of “Cost Leadership” is the way to strategically position a company on the advantage of cost is to increase Cost Customer market share by transforming fromLeadership Intimacy lowest cost producer to lowest cost supplier of products. Now everyone can fly
Product Leadership To pursue a strategy of “Customer Intimacy” is predicated on tailoring and shaping products and services to fit an increasingly fine definition of the customer. The objective Cost Customer is long-term customer loyalty and long-Leadership Intimacy term customer profitability.
Product Leadership To pursue a strategy of “Product Leadership" entails delivering value through offering leading edge products and services, and creatively adapting services, providing a stream to Cost Customer new and changing marketing conditionsLeadership Intimacy while constantly pursuing new solutions on behalf of its clients and customers.
The Choice of Strategy Product Leadership Cost Customer Leadership Intimacy
What is our Strategy ? Product Leadership Cost Customer Leadership Intimacy
Agenda Product Leadership Strategy AIESEC Product Leadership Strategy Four area of benefits that AIESEC offers
• Niche player Product Leadership • Delivering to the specific needs of a particular market segment • Individual solutions • Identify customer needs and develop solutions Customer • Marketing/sales of unique Cost customer solutionsLeadership Intimacy
• The company achieves the lowest production and distribution costs in the industry Product Leadership • Positioning the company as a Low cost in the market • Increasing revenue is the first priority for the company • Marketing/sales of components/stand alone Cost Customer productsLeadership Intimacy • ”Find” customers and offer them existing portfolio
Product LeadershipUnique ProductSuperior QualityCreate a Product then educate the Market Cost Customer Leadership Itimacy
Connection Balanced Score Card Product Leadership AIESEC 2010 AIESEC XP AIESEC Way
Product Leadership AIESEC Experience is the core product of AIESEC. Different facets of AIESEC Experience are sold to different stakeholders who Product customize their own experience. AIESEC’s Product Leadership @XP as an experience & how it is lived needs to continue to evolve & improve, which would ensure our product leadership. The absolutes of @XP are an exchange & leadership experience & a global learning environment.Cost Customer The objectives & scope of our core processes need to be standardized across the network. The processes should be customizable to the reality of countries, which would ensure our product leadership on the ground, at the LC level. We have to create a prime quality experience for every stakeholder. We need to have an extremely strong & reputable brand which attracts people & organizations to AIESEC & @XP. We need to reach out & educate the markets about our product – the AIESEC Experience. We need to be always sure about our product portfolio & the value that the products offer. The portfolio continues to evolve as we find more opportunities with @XP, but we need to be comfortable with the idea of everyone not wanting our products & not wanting to associate with AIESEC.
Key principles of ‘Product Leadership’ Strategy1. Develop a mindset of innovation amongst the members2. Lead & educate the markets about the use, need & benefits of new products3. A risk oriented management style, developing an attitude of self-management amongst the members
Product Leadership as our STRATEGY Does it give you focus & direction to your organization’s activities? Does it help define what not to focus on, what not to do? Does it aim to create a unique competitive position in the long-run?
Product Leadership: A corporate perspective• Why can companies charge a higher price if they choose product leadership?• What are the risks?
• The value added by the uniqueness of the product a premium.• The higher price will more than cover the extra costs incurred in offering the unique product.
• Because of the products unique attributes, if suppliers increase their prices the firm may be able to pass along the costs to its customers who cannot find substitute products easily.
Firms that succeed in a differentiation strategy often have the following internal strengths:• Access to leading market research.• Highly skilled and creative product development team.• Strong sales team with the ability to successfully communicate the perceived strengths of the product.• Corporate reputation for quality and innovation.
• The risks associated with product leadership strategy include imitation by competitors and changes in customer tastes.
Think about yourself…• When you first joined AIESEC, you bought AIESEC’s product – AIESEC XP.Is it a unique product for you? How unique?Have you experienced superior quality? If yes, how? If no, why?
Now you’ve become LCEB. As the people who develop our product,Have you put innovation into developing our product?Have you been educating our market about our product? How do you ensure your members are enjoying high quality experience?
Because we choose Product Leadership,does it mean…• We just need to educate the market to buy the thing we currently have?• We can ignore market needs?
Now think about your LCThink about what are theproducts/initiatives/actions/projects inyour LC that you consider to be alignedwith the product leadership strategy?
Agenda Product Leadership Strategy AIESEC Product Leadership Strategy Four areas of benefits that AIESEC offers
In any product, any activity or partnership AIESEC bringsfour areas of benefit. It is crucial that AIESEC deliversvalue to any to its partners/sponsors. With no value-partnershave no reason to continue in partnerships. Access to Talent Employer Branding Impact in Society Access to youth opinion
Value Description AIESEC offers Global International Internship Program Talent Mentorship Program Leadership Development Program Local Graduate Program Talent Alumni Hall of Fame Alumni Graduate Program
Value Description AIESEC offers AIESEC Conferences : Content workshops, Partnership AIESEC enables Launch. organizations to interact physically and virtually with high talented people from AIESEC Events – Alumni Events all over the world in order to strengthen their Reward and Recognition: employer brand and Global/ Regional Awards position the company as the first choice of attracting Talent in the market. Virtual platform (myaiesec.net), wiki, classified …etc
Value Description AIESEC offers Focusing on developing youth and interacting with Issue Based Projects them around specific issues become a major need for Learning Events and corporate organization learning networks nowadays. CSR/Sustainability Forums AIESEC is partnering with the corporates to provide AIESEC Expansion the needed impact in society.
Value Description AIESEC offers Youth is the future of any business today. Youth opinions and innovation are crucial in order for any business to be Online Surveys aware of trends and issues young people care about. Campus Surveys AIESEC offers the opportunity to interact physically and AIESEC Symposium virtually with high-potential university students and graduates from all over the Focus Groups and world through gathering their workshops opinion through ON-Line Surveys and Focus Groups