Stephanie Bedard

Zoraya Ghanem-Zo

      Filipe Alves

   Lazaros Rinakis

     Henry Sichel
Capabilities



               Competitive   Competitive   Consumer    Financial
                strategy     advantage     responses   outcomes




Resources
   Experiencial
      Experiencial
     Partners and distributorships (eg. Pharmaceuticals industry
      and Fertin)

        Phisical
    Physical
     Strong presence in Western Europe (4 subsidiaries)
     Global network of suppliers, subsidiaries, agents, licensees


       Financial
    Financial
     Increasing net capital (past 5 years)
   Relationship building
     Relationship building
     Partners and distributorships
     Contacts in the market
      ○ Boomer example


   Product development
     Product development
     Strong R&D
     Advanced technology
     Coating of dragées
International
  International                        Costadvantage
                                       Cost advantage

 Improving production efficiency       • Cost of raw materials;
                                       • Production costs per unit

Western Europe
 Western Europe                     Productdifferentiation
                                    Product differentiation
Marketing differentiation, acting      • Quality;
on the Product                         • Taste;
                                       • Brand identification


       Fertin                       Productdifferentiation
                                    Product differentiation
                                      (Work in in progress)
                                         (work progress)

Marketing differentiation              • Quality;
                                       • Brand identification
Capabilities



               Competitive   Competitive   Consumer    Financial
                strategy     advantage     responses   outcomes




Resources
Government
          Cost Drivers
                           Drivers




Market                                Competitive
Drivers                                 Drivers
                  Industry
                Globalization
                  Potential
Wrigley
                Warner-Lambert (Adams)
                Lotte
                Naisco
                DANDY
                Kraft Jacobs Suchard
                Perfetti
                JOYCO
                CSM Leaf
                Cadbury (Hollywood)
                Others




1999 World Market Competitors (Dandy, November 2001)
Geographic concentration / clustering              Geographic dispersion
    • High skills requirement                          • Low skills
    • Capital intensive                                • Labor
                                                       intensive
                                         Labor
• High transport costs per value added             • Low transport costs per VA
• Tight inter-org sequencing, delivery (JIT)       • Few or only loose linkages

                                       Logistics
•   New, changing rapidly (biotech)                •   Mature
•   Experiential, learning by doing, “tacit”       •   Codified, articulable
•   Systemic; broad, inter-disciplinary            •   Discrete; parsable; narrow
•   Inter-organizational (supplier networks)       •   Internal to the firm

                                     Knowledge
Research   Development   Manufacturing   Sales   Service
Market
growth


  High




  Low




         High   Low     Relative
                      market share
Market
growth


  High




  Low




         High   Low     Relative
                      market share
Market
growth


  High




  Low




         High   Low     Relative
                      market share
R&D



       Finance               W. Europe
                   Dandy
                   Brands
                              C. & E.
                              Europe
       Sales &
CEO
      Marketing
                            International


      Production   Fertin       R&D
Proposed Organizational Structure
                           Dandy brands
              Personnel
                               Dandy
                           international
               Sales &
              Marketing
  Managing                    Dandy
  director                 confectionery
              Production
                              Fertin
               Finance
„when you cannot beat them,
join them“
Domestic markets
   International              Product differentiation
 To act on the 4 P’s:            • Quality;
 • Revitalization;               • Taste;
 • Promotion                     • Brand identification


  Niche markets               Product differentiation
 Marketing differentiation:
                                 • Taste
 • Promotion;
 • Product


Eastern Europe - Russia       Product differentiation
                                 • Quality
                                 • ?
Markets        Objective        Nature     To engage:

                 To defend the
 «Domestic»                       Reaction    Subsidiaries
                 market share

                 To protect the
   «Niche»                         Action     Main players
                     niche

Eastern Europe     To invade      Proaction   Distributors
Capabilities



               Competitive   Competitive   Consumer    Financial
                strategy     advantage     responses   outcomes




Resources
Market
growth


  High




  Low




         High   Low     Relative
                      market share
Thank you!
Gracias!
ευχαριστώ!
Obrigado!
Grazie!

  … and, as we are in Austria…
            Danke!

Dandy Case Study

  • 1.
    Stephanie Bedard Zoraya Ghanem-Zo Filipe Alves Lazaros Rinakis Henry Sichel
  • 2.
    Capabilities Competitive Competitive Consumer Financial strategy advantage responses outcomes Resources
  • 3.
    Experiencial Experiencial  Partners and distributorships (eg. Pharmaceuticals industry and Fertin)  Phisical Physical  Strong presence in Western Europe (4 subsidiaries)  Global network of suppliers, subsidiaries, agents, licensees  Financial Financial  Increasing net capital (past 5 years)
  • 4.
    Relationship building Relationship building  Partners and distributorships  Contacts in the market ○ Boomer example  Product development Product development  Strong R&D  Advanced technology  Coating of dragées
  • 5.
    International International Costadvantage Cost advantage Improving production efficiency • Cost of raw materials; • Production costs per unit Western Europe Western Europe Productdifferentiation Product differentiation Marketing differentiation, acting • Quality; on the Product • Taste; • Brand identification Fertin Productdifferentiation Product differentiation (Work in in progress) (work progress) Marketing differentiation • Quality; • Brand identification
  • 7.
    Capabilities Competitive Competitive Consumer Financial strategy advantage responses outcomes Resources
  • 8.
    Government Cost Drivers Drivers Market Competitive Drivers Drivers Industry Globalization Potential
  • 9.
    Wrigley Warner-Lambert (Adams) Lotte Naisco DANDY Kraft Jacobs Suchard Perfetti JOYCO CSM Leaf Cadbury (Hollywood) Others 1999 World Market Competitors (Dandy, November 2001)
  • 16.
    Geographic concentration /clustering Geographic dispersion • High skills requirement • Low skills • Capital intensive • Labor intensive Labor • High transport costs per value added • Low transport costs per VA • Tight inter-org sequencing, delivery (JIT) • Few or only loose linkages Logistics • New, changing rapidly (biotech) • Mature • Experiential, learning by doing, “tacit” • Codified, articulable • Systemic; broad, inter-disciplinary • Discrete; parsable; narrow • Inter-organizational (supplier networks) • Internal to the firm Knowledge
  • 17.
    Research Development Manufacturing Sales Service
  • 21.
    Market growth High Low High Low Relative market share
  • 22.
    Market growth High Low High Low Relative market share
  • 23.
    Market growth High Low High Low Relative market share
  • 25.
    R&D Finance W. Europe Dandy Brands C. & E. Europe Sales & CEO Marketing International Production Fertin R&D
  • 28.
    Proposed Organizational Structure Dandy brands Personnel Dandy international Sales & Marketing Managing Dandy director confectionery Production Fertin Finance
  • 29.
    „when you cannotbeat them, join them“
  • 33.
    Domestic markets International Product differentiation To act on the 4 P’s: • Quality; • Revitalization; • Taste; • Promotion • Brand identification Niche markets Product differentiation Marketing differentiation: • Taste • Promotion; • Product Eastern Europe - Russia Product differentiation • Quality • ?
  • 34.
    Markets Objective Nature To engage: To defend the «Domestic» Reaction Subsidiaries market share To protect the «Niche» Action Main players niche Eastern Europe To invade Proaction Distributors
  • 35.
    Capabilities Competitive Competitive Consumer Financial strategy advantage responses outcomes Resources
  • 36.
    Market growth High Low High Low Relative market share
  • 37.
    Thank you! Gracias! ευχαριστώ! Obrigado! Grazie! … and, as we are in Austria… Danke!