Week 3 : Organisational Resource Base

Customer Based Assets  Relationships with customers; Company Name and reputation; Brands,
country of origin, Market domination, Superior products and services

Internal Support assets  Cost advantages, Information systems,

Dairy Farm – Bulk buy, impulse buy and convenience buy; Dynamic marketing capabilities 
distribution network is the same and warehousing is the same;

Customer Based Assets - one brand cannot fetch the market  Daiso  $2  need to create a 2nd
brand  7 eleven  NTUC Fairprice  7 Eleven  Always Close to you but never closed

Marketing Assets  Coco Cola  Shape of the bottle  Asset  Fuji water  &  Vodka  Shape
of the bottle and the uniqueness  comes to the mind;

Taiwan Milk Tea  Slim bottle with Cap - Shape; Create Uniqueness - Brand visibility  Brand
 See the shape  It also could be Jingle  Adidas & Nike  Quote; Brands take time to get into
your head;

Sometimes the country  FOR lv  If it comes from Australia; Singapore made motorbike & car 
people wont buy because of the heritage  China  ELECTRIC BUS; Country of Origin  Brand
Association  All of them originate  How many Singaporeans would be their brand? Vietnam -
High Usage  Believe in the brand;

Swimming  Russia  No go ; Country origin;

Global Chain  Sweden owned  China produced  Polestar;

Levis  BUTTON – USA  Cloth – Bangladesh;

Good brand  but no copyright or patents, trademarks, designs  proprietary elements

Perception  Created  Similar to museum  Gloves  Black tray  Every color looks with the
black background; Engineered  managing our expectations  your selling a luxury asset; The
whole show and song and dance  buying like 10000 but its 5000 - organised not properly 
perception of value will drop;

Suppply chain assets  Keiretsu ;

Like to own everything they do  own hotel and restaurant  2800 shops in Japan  own
manufacturing and renovation  everything within itself  Keiretsu; That is reason why they go into
multiple business;

CHAEBO  Love to do everything

Toyota  go with bridgestone  gang up  little a bit of shares  one main group  related
diversification in the starting stage  Furniture from travel tourism  3300 shops in mass -
unrelated to the outsiders  but they are more related;

JTV  Japan Railway ; Rail company  120 years company  when they started there is a
relationship; Insourcing rather than outsourcing  I don’t want to rely on the supply chain  60% of
my plane tickets  Japan Airlines  increase price  don’t swing around; Cross shareholding 
Japan and Korea  network in the market; More leverage; Very difficult to the stage  in VRIO 
Then cannot imitate  India  TCS  Important  Dominated by another owner  Before you
meet the dog  check the owner first;

ALLIANCE BASED ASSETS  Gained through strategic alliance and partnerships;

I can put passengers in flight without assets  STAR ALLIANCE  SIA, UNITED, LUFTHANSA;

SIA AND LUFTHANSA  SO Turkish airlines  can fly into the middle east;

MARKETING RESOURCES

Most Overlooked  Many app based companies are value added  database  goods and services
 grab pay;

Luxury brands  LV  US, EUROPE AND ASIA  Have different designs  to prevent parallel
import  fly to milan to buy LV  Design also can be a marketing resource  create territorial
designs;

Developing Marketing Capabilities

Mcdonalds  geographic footprint  move to the real estate  Mcdonalds  own and lease 
Revalue of Assets  Tangible Assets  value goes up;

Accounting standpoint  dynamic distribution capability;

Operational standpoint  food and supply chain business  they don’t own the bakery  but they
outsource the items  I now buy bread  millions per day then ship them  economies of scale;
You can get bread from anyone  14-15 million hot dogs a year  IKEA  Outsourced from one
source;
DOMINANCE IN SUPPLY CHAIN  DICTATE THE PRICE  NOT EASY TO IMITATE  THAT KINDA
VOLUME;

Disney buy middle tier to bridge the middle market  same distribution capability  Buono vista 
film distribution capacity  all genres can be integrated in one;  Links back to Market portfolio 
same products for different markets;

Product and Service Management Capability: How we tweak a little bit, but same production line and
supply chain  P&G;

Car business strategy  works in a health care business  going to back 5 core  buy head and
shoulders  stylish  one brand  studio  another brand  3 in 1  another brand 
DYNAMIC CAPABILITIES

ASSETS  TANGIBLE  CAN TOUCH, FEEL - geographic footprint

RELATIONSHIP  INTANGIBLE  CONTRACT;

MANAGE AND OUTSOURCE MANUFACTURING  DIFFICULT;

The more we outsource  the greate it bottoms out relationship  no longer assets  no buy low
sell high if going to assets  to grow economies of scale  work 24 hours, produce at higher price,

ABSORPTIVE CAPABILITY – React to the market, develop new relationships but not market needs but
what else can I provide  market development, innovative development;

Steve jobs good at last two products  create new needs  need to map  rare talent  when he
was gone  knowing the customer  Lead users  Innovative manager but not steve jobs  Much
longer time to come up with new idea  Strategic Leaders  Other people expand more energy and
time  Innovative capability with a lot with human;

ADAPTIVE CAPABILITY

INNOVATIVE CAPABILITY -> For instance: Corning  technology  we living around it but don’t
know yet  3M  Mining company  Innovative  Scotch tape  Broken pipe –> solve the
problem  everything with stickiness  Adhesiveness;  Mining company become all household
products;

TRACEY AND WEIRSMA - VALUE CREATING DISCIPLINES  SAME STATEMENTS OF PRODUCT

LEADERSHIP, CUSTOMER INTIMACY AND OPERATIONAL EXCELLENCE 
Product leadership  market dominance, superior features, economies of scale; It doesn’t have to
be technology  user interaface, intuitive user experience (UX AND UI), DESIGN; Must have
customer intimacy  don’t know the user  superior functionality  Defining  what they really
buying or what you think of buying  slimming centre  marketing strategy  take child scorecard
 before joining  improve the grades from here to here  what if the child  doesn’t suit  buy
a cake  same like fitness programme  all in the business of hope and celebrating achievement 
Customer intimacy  feel good that I sell them  every quarterly  cannot wait 1 year  that’s
what customer intimacy  then move operational excellence  fitness programs  all trainer need
to do it; Ex  Amway  all in 1 product  every item I sold get $5  Hit 20 more  free drinks 
announcing achievement  tomorrow I want to be in the ring bell; Makes you feel proud; Celebrate
 high order;

Tracy and Weirsma  Sustainable competitive advantage  identify the resources product
leadership  must know the customer well  customer intimary - Product leadership  comes
from operational excellence  same price but more value sometimes better than less price;
Pomised delivery - Assets runs 24 hours  downtime  cost money;

Operational Excellenece  Toyota  Kaizen  80 years old  Make bottles all life  and make it
better  because of the work culture  Japanese  there is no reward of being outstanding but
consistent  motivation more important

Customer intimacy have it  but don’t realise it that they don’t realise it  do we realise the
success ; We don’t buy it cause of the best bottle  Choice of colors  maybe a minute ;

Product Leadership  best item in lower price  did they do this because of customer intimacy 
very focused on production and cost  and not the value;