valuemathics market entry mode. matchmaking matchmaking is reflected in the market mode. this is the...

ValueMathicsMARKET ENTRY MODE

Matchmaking

• Matchmaking is reflected in the market mode. This is the way in which a company uses its strongest value activities (TPLMS) to enter a market and leave other value activities to the trade channel.

• These strong value activities -competitive advantages- are the green areas in the SWAT

+

+

++

+++

++

+++

++

+++

++

+

++

+

+

+++

+++

++

++

+++

+++

+++

+SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.

+MARKETING - Marketing/ sales management, promotional activities, customer retention, relation mgmt.

+

LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)

+++PRODUCTION - Manpower, machines, buildings, processes, internal routing

+TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,

+

+

++

+++

++

+++

++

+++

++

+

++

+

+

+++

+++

++

++

+++

+++

+++

+SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.

+MARKETING - Marketing/ sales management, promotional activities, customer retention, relation mgmt.

+

LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)

+++PRODUCTION - Manpower, machines, buildings, processes, internal routing

+TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,

SUBC

ON

TRA

CT

, C

UST

OM

MN

F FO

B, K

PO

LICEN

SIE M

AN

UFA

CTU

RIN

G

PRIV

ATE LA

BEL, SO

UR

CIN

G, IP/O

C

FULL V

ALU

E, BR

AN

D

JOBBIN

G, BPO

C

MTP / M

AQ

UILA

MARKET MODES

SUBC

ON

TRA

CT

, C

UST

OM

MN

F FO

B, K

PO

LICEN

SIE M

AN

UFA

CTU

RIN

G

PRIV

ATE LA

BEL, SO

UR

CIN

G, IP/O

C

FULL V

ALU

E, BR

AN

D

JOBBIN

G, BPO

C

MTP / M

AQ

UILA

MARKET MODES

• analysis. The red areas need to be taken care of by the trade partner or need to be improved by the exporter

• Each market mode focuses one or two of the specific value activities (TPLMS) and shows, which is the best way to escape the downward price spiral and enter the high road to global markets.

PRO

DU

CT

AC

CES

S

SPEE

D

IMA

GE

SERV

ICE

TC

O

TO

TA

L

TECHNOLOGY 13 11 4 11 7 17 41

PRODUCTION 19 25 17 6 4 20 91

LOGISTICS 4 6 19 8 1 12 28

MARKETING 4 8 12 11 2 7 10

SUPPORT 5 2 13 3 17 4 18

TOTAL 37 52 23 21 31 36

CUSTOMER VALUESV

ALU

E C

HA

INSWAT

ANALYSIS

From audit to business

+

+

++

+++

++

+++

++

+++

++

+

++

+

+

+++

+++

++

++

+++

+++

+++

+SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.

+MARKETING - Marketing/ sales management, promotional activities, customer retention, relation mgmt.

+

LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)

+++PRODUCTION - Manpower, machines, buildings, processes, internal routing

+TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,

+

+

++

+++

++

+++

++

+++

++

+

++

+

+

+++

+++

++

++

+++

+++

+++

+SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.

+MARKETING - Marketing/ sales management, promotional activities, customer retention, relation mgmt.

+

LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)

+++PRODUCTION - Manpower, machines, buildings, processes, internal routing

+TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,

SUBC

ON

TRA

CT

, C

UST

OM

MN

F FO

B, K

PO

LICEN

SIE M

AN

UFA

CTU

RIN

G

PRIV

ATE LA

BEL, SO

UR

CIN

G, IP/O

C

FULL V

ALU

E, BR

AN

D

JOBBIN

G, BPO

C

MTP / M

AQ

UILA

MARKET MODES

SUBC

ON

TRA

CT

, C

UST

OM

MN

F FO

B, K

PO

LICEN

SIE M

AN

UFA

CTU

RIN

G

PRIV

ATE LA

BEL, SO

UR

CIN

G, IP/O

C

FULL V

ALU

E, BR

AN

D

JOBBIN

G, BPO

C

MTP / M

AQ

UILA

MARKET MODES

CO

ST

Market Mode - who does what ?

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY

SELLER BUYER CONSUMER

CUSTOMER VALUE

VA

LUE

TECH

NO

LOGYPRODUCTION

MARKE

TIN

G

PATENT BRAND

Market Mode – how to upgrade ?

Market entry modeFRESH PRODUCE

OutgrowingContract farming

VarietyBrand/variety

GARMENTSCMT/Maquila

FOBSourcing

Brand/design

INDUSTRIALJobbing

SubcontractingLicensing

Private labelBrand

SERVICESBPO/call centre

KPO/ITO/EngIP/own content

Brand

TOURISMTravel agencyTour handler

Tour op/packageBrand consolidator

PRE-HARVEST+++++

++++++

DESIGN++

+++++

TECHNOLOGY+

++-

+++++

TECHNOLOGY+

+++++++

PACKAGING--+

+++

POST-HARVEST++

+++++++++

PRODUCTION++++++++++++

PRODUCTION++++++++

+++++

EXECUTION++++++++++

EXECUTION++

++++++

+

LOGISTICS+

+++

+++

LOGISTICS+

++++++

LOGISTICS+

+++++

+++

MANAGEMENT++

++++

++

MANAGEMENT+

+++++++

MARKETING--

+++++

MARKETING--+

+++

MARKETING--

++++

+++

MARKETING+++

+++

MARKETING++-+

+++

SUPPORT++

+++++

SUPPORT+

++++

+++

SUPPORT-+

++++++++

SUPPORT++++++

-+

SUPPORT+

+++++++

T P L M S FRESH PRODUCTS

GARMENTS APPAREL

MANUFACTURED PRODUCTS

SERVICES ITO/BPO/KPO

Contract manufacturin

gCTC CMTP, Maquila

JOBBING, TOLL CONVERSION, CKD ASSEMBLY

BUSINESS PROCESS OUTSOURCING

Sub-contracting

OUTGROWING FOBSUBCONTRACTING CUSTOM MNF. SKD, EMS

KNOWLEDGE PROCESS OUTSOURCING

License manufacturin

gGROWING

LICENSE MANUFACTURING, BOX EMS

BRAND

Private label manufacturin

gSOURCING

PRIVATE LABEL MNF. ODM

IP/OWN CONTENT

Own IP/brand UNIQUE VARIETY OWN BRAND

OWN DESIGN OWN BRAND

OWN TECHNOLOGY OWN BRAND

IP/OWN CONTENT OWN BRAND

Market ModesWe distinguish five general types of business models/ market entry modes: each model has a different amount and nature of value addition.

SELLER BUYER CONSUMER

CO

ST

1. Contract manufacturing

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY Seller concentrates on production or execution and leaves technology, design, marketing to buyer -low value adding. Typical trade partners are A-brands, companies with simple after sales requirements

CO

ST

TECHNOLOGY

PRODUCTION

1.1. CMTP/maquila

CMT CONSUMER

TECHNOLOGY

LOGISTICS

MARKETING

SUPPORT

1.2. BPO/call centre

CALL CENTRE CONSUMER

CO

ST

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY

HSBC

SELLER BUYER CONSUMER

CO

ST

2. Sub-contracting

SUPPORT

MARKETING

TECHNOLOGY

PRODUCTION

LOGISTICS

TECHNOLOGY Seller produces under specifications of buyer,sources all materials. Buyer concentates on logistics, marketing and after sales. Typical trade partners are large retail chains, T1/ OEM’s, firms with more complex after sales requirements.

SPRAYER LTD. “CHANEL” CONSUMER

CO

ST

2.1. Cosmetics - sprayers

SUPPORT

MARKETING

TECHNOLOGY

LOGISTICS

TECHNOLOGY

PRODUCTION

Tier 2 –piston manufacturer

Tier 1 – engine manufacturer

OEM – truck manufacturer

2.1. Automotive – T2

ENGINEERING FIRM KEMA CONSUMER

CO

ST

2.3. Engineering services

SUPPORT

MARKETING

TECHNOLOGY

PRODUCTION

LOGISTICS

TECHNOLOGY

SELLER LEVIS CONSUMER

CO

ST

2.4. “FOB”

SUPPORT

MARKETING

TECHNOLOGY

PRODUCTION

LOGISTICS

TECHNOLOGY

CO

ST

3. License manufacturing

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY

SELLER BUYER CONSUMER

Seller has captive (regional) markets, but lacks the technology or design capacity. Sources technology from third parties and concentrates on marketing. Typical alliances are with enineering firms, design studios, laboratories

“License and buy back” :• Buyer provides the design, drafts, formulation of product,

often trough a design studio• Buyer provides sometimes a “secret component”• Seller takes care of productionOther modes :• Seller takes care of marketing, sometimes under own

label, sometimes under licensor’s brand• Seller takes care of outgoing logistics• Suitable for regional markets, beware of marketing

restrictions from licensor

3. License manufacturing – 2 options

LICENSOR

LICENSEE

LICENSEE

LICENSEE

FREE MARKETS

BLOCKED MARKETS

3. License manufacturing

CO

ST

3.1. Food processing

SUPPORT

MARKETING

TECHNOLOGY

BOTTLER COCA COLA CONSUMER

LOGISTICS

PRODUCTION

CO

ST

4. Private label manufacturing

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

SELLER BUYER CONSUMER

Seller has a unique technology or design, production or execution facilities, but lacks/does not want to get involved in marketing after sales. Typical trade partners are retail stores, B-brands, OEM’s.

CO

ST

4.1. Automotive – car assembly

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

MAGNA STEYR CHRYSLER CONSUMER

CO

ST

4.2. Oil industry

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

SHELL CONSUMER

CO

ST

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

SELLER MORNING FRESH

CONSUMER

4.4. Food processing

A -BRAND

4.4. The supermarket shelf

HOUSE BRAND

FIGHTING BRAND

CO

ST

4.4. Accessories – sourcing

SUPPORT

LOGISTICS

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

UMBRALLA MNF. VODAFONE CONSUMER

CO

ST

5. Own IP/brand

SUPPORT

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

SELLER BUYER CONSUMER

Seller has own technology, content or design, markets its products or service under own brand through trade channels or on the web. Typical trade partners are distributors, retail, publishers-or direct sales

CO

ST

5.1. Games

SUPPORT

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

APPLE CONSUMER

CO

ST

5.2. Garments - brand

SUPPORT

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

CLEVER MODA S.A.

RETAIL CONSUMER

CO

ST

5.3. Food processing - brand

SUPPORT

MARKETING

PRODUCTION

TECHNOLOGY

LOGISTICS

BUYER CONSUMER

TECHNOLOGY - Qualified engineers, designers, equipment, research, product development, design, laboratory,

+ ++ + +++ +++

PRODUCTION - Manpower, machines, buildings, processes, internal routing +++ +++ ++ +++ +++

LOGISTICS - Logistical infrastructure, sourcing, materials managements, storage capacity, transport equipment (own or outsourced)

+ ++ ++ + ++

MARKETING - Marketing/sales management, promotional activities, customer retention, relation mgmt.

+ + +++ + +++

SUPPORT - Personalized service, pre- and after sales service, maintenance, helpdesks, product information, application engineering.

+ + +++ ++ ++

Required amount/nature of

value addition

CONTRACT

MANUFACTURI

NG

SUB CONTRACTIN

G

LICENSIE

MANUFACTURI

NG

PRIVATE

LABEL MANUFACTURI

NG

OWN IP

BRAND