Lesson 2. Innovation & Quality Management

For analysing the global environment, we use:

• 5 forces of Porter

• PESTEL Framework

• Market segmentation

• Value chain

In order to define an innovation strategy, the following instruments can be used in the strategic analysis of a sector: market segmentation, The detection of critical success factors and...

• The Five Forces Model

• PESTEL Framework

• Value chain

The 5 forces of Porter are:

In the FORCE 1: FACTORS THAT INFLUENCE THE BUYER’S BARGAING POWER, we find:

• POWER OF DISTRIBUTION CHANNELS, PRICE ELASTICITY OF DEMAND

• HIGH FIXED COSTS

• HIGH EXIT BARRIES

• SLOW AGGREGATE INDUSTRY GROWTH

In the 5 forces model, when talking on "companies that want to enter and compete in an industry. The more attractive a sector is, the more potential participants there will be."

• FORCE 1: FACTORS THAT INFLUENCE THE BUYER’S BARGAING POWER

• FORCE 2: BARGAINING POWER OF SUPPLIERS

• FORCE 3: RIVALRY AMONG EXISTING COMPETITORS

• FORCE 4: THREAT OF SUBSTITUTE PRODUCTSOR SERVICES

FORCE 5 :THREAT OF NEW ENTRANTS. This barrier works in our favour when other companies cannot emulate the price of our products because they have highercosts.

• GOVERMNET POLICY:

• ACCESS TO DISTRIBUTION CHANNELS:

• COST DISADVANTAGE:

• CAPITAL INVESTMENTS:

In the segmentation, the characteristics of the Market/Product are..

• Type of Intermediaries, Geographic situations and Specialization

• Buyers, Technical Characteristics and dimensions

• Prices, Services, Market Dimensions, Functionalities and Design

• Prices,Type of Intermediaries, Services, Market Dimensions and Functionalities

A segment in the market must be:

• Measurable, big enough, accessible, differentiable and actionable

• Set on the competitive tools (costs, speed of delivery, etc.) on which the strategies of the companies in the sector are based.

• Answer •1. WHAT DO CUSTOMERS WANT? (Demand Analysis)2. HOW DOES THE COMPANY SURVIVE COMPETITION? 3. KEY SUCCESS FACTORS

CRITICAL SUCCESS FACTORS

• The critical success factors are those distinctive elements of the product or service that are particularly appreciated by the shareholders.

• The critical success factors are those distinctive elements of the product or service that are particularly appreciated by the government.

• The critical success factors are elements of the product or service that are particularly appreciated by a group of suppliers.

• The critical success factors are those distinctive elements of the product or service that are particularly appreciated by a group of customers.

Critical Success Factors, should answer:

• •1. WHAT DO CUSTOMERS WANT? (Supply Analysis)

  •2. HOW DOES THE COMPANY SURVIVE COMPETITION? (Government policy)

  •3. KEY SUCCESS FACTORS

• •1. WHAT DO CUSTOMERS WANT? (Demand Analysis)

  •2. HOW DOES THE COMPANY SURVIVE COMPETITION? (Competition policy)

  •3. KEY SUCCESS FACTORS

• •1. WHAT DO SUPPLIERS WANT? (Supply Analysis)

  •2. HOW DOES THE COMPANY SURVIVE COMPETITION? (Competition policy)

  •3. KEY SUCCESS FACTORS