Flashcards in L6, Tools for company, technology and market analysis Deck (32)
Describe and use the established tools (PEST, SWOT, Benchmarking) for carrying out an analysis of the market trends and conclude on the business implications of the analysis
Compile information about and assess the state-of-the-art in a particular technological domain or application area
To gain understandning of the strengths and weaknesses ofbyour company and its products
What is a swot?
1. an analysis of strengths, weaknesses, opportunities and threats
—> could be applied to the company
—> could be applied to the product idea
2. First you make an INTERNAL analysis focusing on the strengths and weaknesses at the business (company, organisation, product)
3. You then review the EXTERNAL business environment and identify opportunities and threats n that environment.
Typical questions when analyzing strengths?
1. what does the company do well?
2. is the company strong in its market?
3. Does the company have a strong sense of purpose and the culture to support the purpose?
Typical questions when analyzing weaknesses?
1. what does the company do poorly?
2. What problems could be avoided?
3. Does the company have serious financial liabilities?
Typical questions when analyzing opportunities?
1. are industry trends moving upward?
2. Do new markets exist for the company's products/services?
3. Are there new technologies that the company can exploit?
Typical questions when analyzing threats?
1. what are competitors doing well?
2. what obstacles does the company face?
3. Are there troubling changes in the company's business environment (technology, laws and regulations)
4. If thorough swot, you can also make a smaller one with "selected observations".
What is benchmarking?
— Provides a standard or point of reference to measure and judge product quality, value or performance
— The continuous process of measuring products, practices and services against the toughest competitors or those recognized and industry leaders
— It is a systematic and repeatable process for continuous improvement to take inspiration from others
— can concern processes as well as products
What could benchmarking be useful for?
1. Identifying customer needs
—> what are other satisfying?
2. improving concept generation
—> What sub-solutions do others use?
—> can we prove our concept better?
3. For embodiment design
—> can we adapt or improve used design features?
4. Establishing product specifications
—> how can we secure that we set goals that lead to a competitive product?
5. Detail design
—> what supplier can we use for components?
Describe the step by step procedure for benchmarking!
1. Form a list of relevant design issues and properties
2. Identify competing or related products
3. Conduct an information search
4. If possible, buy exemplars of competing products
—> test, take apart, document
5. Systemize the product information
6. Analyze the information e.g. for:
—> best in class per property
—> identifying clusters of properties or competitors
—> identifying opportunities for obtaining unique selling points
—> predicting industry trends
Describe the first step of the benchmark, Form a list of relevant design issues and properties?
You could benchmark almost everything:
1. Different parts/features of the design
2. Product properties
3. Product design
—> design features
4. Company level
—> factory infrastructure
—> patent portfolio
—> market share
—> financial status
6. Materials etc.
Describe the second step identify competing or related products?
— Identify competitors through secondary information
—> search the web
—> patent search
Describe the third step, conduct an information search?
1. written sources
2. market research databases
Describe the fourth step, analyze competing products
First-hand experience of the competing product is essential for understanding:
1. the customers' situation and needs
2. the own product
3. obtaining ideas and inspiration from competitors
— Companies that are serious about customer orientation shortcut the distance between customer-designer
Describe the fifth step, systemize the product information
Create a document and make sure to document everything in a structural way
Describe the sixth step, analyze the infromation?
After getting values and information of competing products it's possible to analyze and categorize the information
—> price segment, low cost or premium?
—> best performance?
How can the information from benchark be visualized?
Visualization in competitive maps!
1. Cost-benefit curve
—> benefit vs cost to get the value for money
2. Property profiles
e.g. quality vs price to get e.g. the best in class industryy lead
3. Trade-off curves
—> find counteracting properties and analyze the companies according to how they meet the trade-offs
—> to identify product prisoning opportunities
Describe target costing!
1. Target costing is a mechanism for ensuring that specifications are set in a way that allows the product to be competitively prices in the market place
2. There are significant uncertainty in these numbers due to competition and market forces. However numbers can be refined over time.
3. Moreover, companies may not be willing to share information about their cost and their margins. In that situation, these estimates still offer some guidance for the development process
Equation target costing?
Target cost=price for final customer* (1-(P-C)/P)
Example of things to be included in a competitor benchmark?
—> marketing methods
—> customer service
—> product range
—> customer financing partners
—> distribution partners
4. Overall performance
Things to keep in mind regarding benchmark?
1. It is difficult to make benchmarking for radically novel ideas
2. Benchmarking is conducted against existing products although product development needs to set targets for future performance and features
3. May lead to tendency to copy industry leaders rather than developing differentiated ideas
What is a PEST analysis?
An analysis for understanding the political, economical, societal and technological dynamics.
— multitude of data sources in the area
— most information will be secondary data collected externally
— large firms have business intelligence specialist who monitor the context of the firm
— There are consultancies working with PEST for companies who can't afford their own business intelligence
— A PEST gives broad idea of what is going on externally but does not tell you what to do about it.
— could be complemented by environmental and legislative dimension PESTEL
what is the purpose of a PEST?
1. To provide a holistic perspective of the environment that a company will operate in, understanding opportunities, threats and constraints
2. understand a market including competitors particularly with regards to market growth and decline
3. compare market situations and potential
4. help structure presentation, discussion and decision-making
Describe the political analysis of the PEST!
1. Government type and stability
— freedom of press
— rule of law
— levels of bureaucracy and corruption
2. Regulation and de-regulation trends
3. Social and employment legislation
4. tax policy, trade and tariff controls
5. environmental and customer-protection legislation
1. new political forces, in what year, trends for those parties?
2. governmental legislations in current area
3. Government funding in specific industry?
Describe the economical analysis in of the PEST
1. Stage of business cycle
2. Current and project economic growth, inflation and interest rates
3. Unemployment and labor supply rise or fall?
4. labor costs
5. level of disposable income and income distribution
6. impact of globalization
7. likely impact of technological or other change on the economy?
8. Will GDP grow?
9. Availability of credit for business?
10. trends in corporate tax?
11. currency changes effecting?
Use e.g. U.S. Bureau of Labour statistics
Describe the Socio-cultural analysis in of the PEST
1. Population growth rate and age profile
2. Population health, education, social mobility and attitudes to these
3. Population employment patterns, job market freedom and attitude to work
4. Press attitudes, public opinion, social attitudes and social taboos
5. Lifestyle choices and attitudes to these
1. Positive attitude towards therapy
2. number of individuals getting searching for help through internet
4. attitude towards certain jobs?
5. attitude towards work hours?
6. what does people tend to buy in this area and how?
7. people changing eating habits?
8. Cultural taboos?
Cultural taboos in Sweden?
1. swedes avoid to argue, especially with visitors
—> swedes will change the subject
2. do not use superlatives when speaking
3. Swedes don't want to lie
4. Swedes dislike marks of ranks or status
5. don't get too personal, topics like family, income and personal background should be avoided
6. swedes are proud of their society, do not criticize their way of life, welfare system, economy, government or culture
7. racist or sexist jokes are not tolerated
describe the technology environment analysis of PEST?
1. Impact of emerging technologies
2. Impact of internet, reduction of communication costs and increaded remote working
3. research and development activity
4. Impact of technology transfer
5. Gartner hype cycle, technology s-curves, patent statistics