Strategic Marketing: Planning and Control, Third Edition

(Wang) #1
Porter (1998) provides an interesting perspective and views of strategy
in terms of: (i) developing a unique position by choosing to perform
differently from the opposition, (ii) making ‘trade-offs’ with other possible
competitive positions, in order to protect your competitive advantage,
(iii) combining activities to fit into, and reinforce, an overall competitive pos-
ition and (iv) ensuring operational effectiveness when executing activities.

8 Strategic Marketing: Planning and Control

Illustrative Example 1.1


DSL International launches ‘TechGuys’


DSL International owns leading electrical retailers such as Currys, Dixons and PC World. The
company now hopes to expand its service operations in the UK through the launch of ‘TechGuys’.
This service aims to provide rapid technical support to the increasingly IT-dependent UK con-
sumer. Services include installation, upgrades and maintenance of computers and audio-
visual devices regardless of where they were purchased. Chief Executive John Clare states that
‘... calling out an engineer to help connect a laptop to the Internet will become as commonplace as using
plumbers and electricians’ (Cavazza, 2006). Support will be available on-site, call centre or over
the Internet. DSL feels demand for such services will grow rapidly and will be bolstered by the
forthcoming switch to digital TV in the UK. The ‘TechGuys’ concept will be implemented
through a number of stand-alone shops and TechGuy service points in existing PC World
stores. DSL will invest £50 million in the venture and hopes to develop the initiative in other
European markets. Research undertaken by the firm shows that almost 80 per cent of adults
need technical support in relation to everyday technology
Consider Figure 1.2 ‘Elements of Strategic Management’, how does this development fit in
with this model?


■ Change – shaping strategy


Change is an accepted consequence of modern life. Indeed, the phrase –
‘change is the only certainty’ – has become something of a business mantra.
All organisations are subject to increasing levels of change. We can view
change in terms of cyclical change and evolutionary change. Cyclical change
involves variation that is repetitive and often predictable (e.g. seasonal
variation in demand or fluctuation in economy circumstances). Evolutionary
change involves a more fundamental shift. It may mean sudden innov-
ation or a gradual ‘creeping’ process. Either way, the result can have dras-
tic consequences for strategic development.
Given that strategic management is concerned with moving the organ-
isation to some future desired state, which has been defined in terms of a
corporate vision and corporate-wide issues, it is important to see the con-
cept of ‘change’ as an integral part of strategy. We can examine this in
terms of the following questions: (i) What drives change? (ii) How does
change impact on our markets/business environment? (iii) What is the
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