Environmental
Consumers and governments concerns about environmental issues have
become much more important in recent years. Therefore an evaluation of
the environmental issues that may affect an organisation’s ability to service
a segment will have to be considered.
Companies will not be capable of supplying every attractive segment
that is identified. Having analysed a segment’s market attractiveness it is
then necessary to compare the needs of that group of consumers with the
organisation’s capabilities. An organisation’s strengths can be judged by
analysing its assets and competencies.
■ Establishing organisational
capability
Organisational capabilities will be made up of specific assets and compe-
tencies. The key areas to identify are where the organisation is superior to
the competition.
In summary, assets are organisational attributes, tangible or intangible,
that can be utilised to gain advantages in the market (see Figure 9.1).
Targeting, positioning and brand strategy 183Figure 9.1
Examples of assets
that create a
competitive
advantage (Source:
Adapted from
Davidson, 1997)Scale advantages • Market share • International presence- Relative and absolute • Sales/distribution
media weight service coverage - Leverage over • Specialist skills due to
suppliers scale
Production processes • Level of contemporary • Economies of scale
(Plant, machinery practice • Capacity utilisation
information systems) • Level of flexibility • Unique items
Customer franchises • Brand names • Customer relationships - Brand franchises • Unique products/services
- Databases • Patents
Working capital • Quantity • Location - Ready access • Access to credit
Sales/distribution service • Coverage • Size
network • Relationships with • Quality
external distributors
Relationships with other • Suppliers • Joint exploitation of
organisations • Financial institutions assets (technology - Joint ventures or distribution)
Property • Type • Ability to expand - Location • Quality