distinct domain of activity.” - Small business: just one SBU‚ large corporations: many SBUs - SBUs can be identified by: à Market based criteria (similar customers‚ channels‚ …) à Capability based criteria (similar strategic capabilities) The purpose of SBUs Decentralization: Decentralization of corporate activities à own SBU strategy Variation: Variation of business strategies à needs of external markets Accountability: SBU can be held responsible à for own costs‚ revenues & profits
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more recently‚ adidas and Nike‚ have been moving into the cricket market. Reebok was the official technical sponsor of the 2011 ICC World Cup and adidas clothes the Proteas‚ English and Australian teams. Nike featured prominently on the sleeves of the Indian team shirts. Some of the top players who had been in action at the World Cup use bats from brands more associated with athletic tracks or soccer fields than cricket pitches. These include the likes of Sachin Tendulkar using an adidas bat‚ and World
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number of limitations (Kotler 2003; McDonald 2003): ➢ There are other reasons other than relative market share and market growth that could influence the allocation of resources to a product or SBU: reasons such as the need for strong brand name and product positioning could compel resource allocation to an SBU or product (Drummond & Ensor 2004). ➢ What is more‚ the model rests on net cash consumption or generation as the fundamental portfolio balancing criterion. That is appropriate only in a capital
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and NFL • Celebrity relationships Maintenance o Reebok’s ability to maintain its competitive advantage is mainly through the strategic merge with Adidas o Since the merge‚ reebok/ Adidas group will maintain their position in the market by providing a larger variety of products that will suit a larger number of customers. o The CEO of the Adidas group has purposely tried to keep the two brands separate because each brand has its different competencies. Thus reebok is keeping its existing customers
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is not a lot to quibble with here. But at the same time‚ the company has a long way to go in establishing itself in the ranks of the industry leaders. It has a small market share and its brand image still suffers in comparison to those of Nike and Adidas. In the U.S. market‚ Puma is an also ran; it is stronger and has considerably more visibility in Europe. 2. What is competition like in the international sport apparel industry? What do we learn about competition in this industry from a five-forces
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Application Exercise Strategic Management Bharat Petroleum Corporation Limited (BPCL)‚ where I am employed‚ is engaged and exploration‚ refining‚ distribution and marketing of petroleum product across the country. In downstream product marketing BPCL‚ has bouquet of products on offer‚ ranging from Petrol‚ Diesel‚ to Aviation Fuel‚ to Cooking Gas to Auto Lubricants. It is a global major and ranked 225th in the Fortune Global 500 rankings of the world’s biggest corporations for the year 2012.
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Background/History on the Wind Power Industry The wind power industry first developed in Iran around 200 B.C. The first windmills were vertical axis wind turbines‚ which were used for pumping water and grinding whole grains for food consumption. The Chinese‚ Romans and Afghans all used windmills around this time for similar use. In the 13th century Holland started developing large horizontal axis windmills. These four-blade windmills were larger‚ carried more torque and wind speed and could do
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BRAND PORTFOLIO METAPHORS BASED ON AAKER’S BRAND PORTFOLIO STRATEGY Kent Dahl kentd@kth.se Different Relevancein Different Contexts Proffesional World Indek/IPD‚ Guest Lecturer Master Thesis‚ Endorsed by Uggla Educational World Educational Music World Professional Music World Music World Internal& ExternalPerspectives What a weak sub‐ brand! Portfolio Roles No‚ it’s a Linchpin brand! Product Defining Roles ProductDefiningRoles
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Corporate Strategic Tasks Arnoldo C. Hax The Central Issue for Top Management How to Add Value at the Corporate Level 1. Environmental scan at the corporate level: Assessing the external forces impacting the firm. The mission of the firm: Choosing competitive domains and the way to compete. Business segmentation: Selecting planning and organizational focuses. Horizontal strategy: Pursuing synergistic linkages across business units. 2. 3. 4. The Central Issue for Top Management (cont’d
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Business strategy We focus on business strategy because we consider our organisation as a strategic business unit (SBU) which is any business that supplies goods or services to a distinct domain of activity. Porter’s generic competitive strategies A competitive strategy is concerned with how a SBU achieves competitive advantage in its domain of activity. Porter defines 3 possible generic strategies to use as a business. The cost-leadership strategy has for aim to become the lowest-cost organisation
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