Group Assignment 2
2008-09-05
Kent Thorén and Matti Kaulio
1
Group Assignments
Group
assignments:
Adding Value
Service
production
& Launch
Making it
Happened &
Exams
F2F
2
F2F
3
F2F
4
F2F
5
Threat From
Substitutes
Beta Learning
(a)
Beta Learning
(b)
Case-based
Examination
Introduction
Business
Environment
F2F
1
Inventory of
competencíes
4-action
framework
2008-09-05
Kent Thorén and Matti Kaulio
2
Assignment 2
1. Get a TeliaSonera business area as a case to analyze.
2. Do a overview and detailed analysis of Threats From
Substitutes (instructions follow).
3. Write a 4-5 page report (+ cover page), handed in
latest 4th of December
2008-09-05
Kent Thorén and Matti Kaulio
3
Case Distribution
Group:
Case:
1
Fixed network
2
Mobility services
3
Broadband services
4
Fixed network
5
Mobility services
6
Broadband services
2008-09-05
Kent Thorén and Matti Kaulio
4
Assignment Work Flow
Brainstorming
Substitutes &
Alternatives
2008-09-05
Overview
Threat
Evaluation
Threat
Prioritization
Detailed
Threat
Analysis
Kent Thorén and Matti Kaulio
Strategic
Alternatives
Recommendation
5
Brainstorming
Substitutes &
Alternatives
Overview
Threat
Evaluation
Threat
Prioritization
Detailed
Threat
Analysis
Strategic
Alternatives
Recommendation
Brainstorming Substitutes & Alternatives
• Develop a “Gross list”: Be creative and open-minded,
do not judge the suggestions until you finished a
preliminary list.
• Your knowledge about emerging technologies and
customer trends may be helpful starting points.
• Try to focus on substitutes and alternatives, rather
than rival products.
• Anything that can steal sales from us is worth
investigating! (see Appendix for inspiration)
• A final list of 4-8 substitutes is a good objective.
2008-09-05
Kent Thorén and Matti Kaulio
6
Brainstorming
Substitutes &
Alternatives
Overview
Threat
Evaluation
Threat
Prioritization
Detailed
Threat
Analysis
Strategic
Alternatives
Recommendation
Overview Threat Evaluation
• Describe each threat more in detail in order to prioritize.
• Make sure to include your TeliaSonera business area in the
analysis for comparison.
• You will discuss segments later in this module (Ralph
Blomqvist). For this exercise, defining a few broad customer
groups will suffice.
• Take particular care to customers segments’ ‘wish list’. Key
Success factors (KSF) from preferences that apply in reality
is also useful.
• Be sure to explain your thinking in the final report.
2008-09-05
Kent Thorén and Matti Kaulio
7
Brainstorming
Substitutes &
Alternatives
Overview
Threat
Evaluation
Threat
Prioritization
Detailed
Threat
Analysis
Strategic
Alternatives
Recommendation
Threat Prioritization
• Make a judgment on which 1-3 threats to analyze
deeper.
• No model is provided for this decision, so use the
overview threat evaluation in combination with other
considerations you feel are relevant.
• Be sure to explain your thinking in the final report.
2008-09-05
Kent Thorén and Matti Kaulio
8
Brainstorming
Substitutes &
Alternatives
Overview
Threat
Evaluation
Threat
Prioritization
Detailed
Threat
Analysis
Strategic
Alternatives
Recommendation
Detailed Threat Analysis
• A good idea is to prepare by browsing chapter 2 in Kim &
Mauborgne “Blue Ocean Strategy”.
• Use the tools to evaluate Key-Success-factors (KSFs) for
current customers mainly (in the book they also add
KSFs for the industry’s non-customers).
• Be sure to explain your thinking in the final report.
2008-09-05
Kent Thorén and Matti Kaulio
9
Brainstorming
Substitutes &
Alternatives
Overview
Threat
Evaluation
Threat
Prioritization
Detailed
Threat
Analysis
Strategic
Alternatives
Recommendation
Strategic Alternatives
• Outline the possible remedies for meeting the threats. Try
to make a structure, grouping or model of the alternative
strategic moves.
• Be creative and open-minded, your suggestions does not
need to be limited by what TeliaSonera does today or what
is possible today.
• Then discuss briefly whether each alternative is a useful
choice for TeliaSonera. For example, you can make some
sort of table of pros-and-cons.
• Be sure to explain your thinking in the final report.
2008-09-05
Kent Thorén and Matti Kaulio
10
Brainstorming
Substitutes &
Alternatives
Overview
Threat
Evaluation
Threat
Prioritization
Detailed
Threat
Analysis
Strategic
Alternatives
Recommendation
Recommendation
• Based on the strategic alternatives and the analysis you
have done, what are your recommendations for the
business area in question?
• You are also welcome to add other conclusions or
reflections you might have.
• Be sure to explain your thinking in the report.
2008-09-05
Kent Thorén and Matti Kaulio
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Final report
• The final report should present
each step of the process and
include a recommendation.
• The length of the reports should
be 4-5 pages + cover page
2008-09-05
Kent Thorén and Matti Kaulio
12
Group Assignment 2
APPENDIX
2008-09-05
Kent Thorén and Matti Kaulio
13
Thesaurus
Opportunity
A beneficial juncture of circumstances. In
business it refers to a potential for bringing
a unmet market need together with a
feasible solution.
Threats
Aspects of the environment that could
damage our current of future business.
Substitutes
Products that has the same purpose or
meet the same underlying needs as our
products, and provide the same utility but
through a different form.
Alternatives
Products that has the same purpose or
meet the same underlying needs as our
products, but through a different utility and
form.
2008-09-05
Kent Thorén and Matti Kaulio
Strategic canvas
A method for illustrating the strategic
positions in the current market space,
created by Kim & Mauborgne. It captures
each competing business concept’s offering
levels on key success factors.
Key Success Factor (KSF)
Aspects of business demanding special
attention when managing the position on a
competitive arena. These are factors
industry players currently can choose to
compete with. (Often related to customers
key purchasing criteria and company
performance criteria.)
Segmentation
Division of the total market in special
groups (segments) with separate
characteristics, for example geographical,
demographical, social and/or behavioral.
14
More 5-forces Details
Source:
2008-09-05
Kent Thorén and Matti Kaulio
DeWitt & Meyer, 2004.
15
5-Forces & Macro Environment
Source:
2008-09-05
Kent Thorén and Matti Kaulio
DeWitt & Meyer, 2004. Modified
16
Different Kinds of Substitutes
For products with the same purpose or underlying
need, there are 3 types of competition:
Form (solution)
Different
Substitute
products
Alternative
products
Rival
products
N/A
Same
Same
Function/Utility
Different
Source:
2008-09-05
Kent Thorén and Matti Kaulio
Kim & Mauborgne, 2005
17
Overview Evaluation of Threat
For each key segment, evaluate substitutes vs.
key success factors (KSF):
Segment:
Corporate
customers
Car
retailers
Leasing
Renting
C2C used
cars
Cooperative
owning
Low upfront
price
Low owning &
using costs
Availability &
reliability
Ease of service
& repair
Model-changing
costs
End user appeal
2008-09-05
Kent Thorén and Matti Kaulio
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Detail Evaluation of Threat
For the 1-3 most important threats, specify KSF
positions more closely:
High
Car retailers
Cooperative
Leasing
Low
Upfront
price
Owning & using Availability &
costs
reliability
Ease of service
Model& repair
changing costs
Source:
2008-09-05
Kent Thorén and Matti Kaulio
End user
appeal
Kim & Mauborgne, 2005
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