1、1Solutions IdentificationA-PDF MERGER DEMO2Collect the additional objectives the strategy may achieve are benefitsA-PDF MERGER DEMO7There are a number of objectives to think about when developing decision criteria for your clientDECISION CRITERIA (CONTD)Consider scenarios suggested by strategic unce
2、rtainties and environmental opportunities / threatsPursue a sustainable competitive advantageExploit organizational strengths or competitor weaknessesNeutralize organizational weaknesses or competitor strengthsBe consistent with organizational vision / objectivesAchieve a long-term return on investm
3、entBe compatible with vision / objectivesBe feasibleNeed only available resourcesBe compatible with the internal organization, i.e., practical and implementableConsider the relationship to other strategies within the firmFoster product portfolio balanceConsider flexibilityExploit synergySource: Deve
4、loping Business Strategies , David A. AakerA-PDF MERGER DEMO8The strategic option which meets all (or most) of the criteria will be the optimal solution for the clientDECISION CRITERIA (CONTD)Decision CriteriaStrategic OptionsABCDCriterion 1 Criterion 2 Criterion 3 Criterion 4 Criterion 5 Criterion
5、6 Criterion 7 A-PDF MERGER DEMOCLIENT EXAMPLESClient Example 1: Selecting the optimal pricing strategyA-PDF MERGER DEMO10Market-DrivenSales-DrivenFragmented RationalChanges the “rules of the game,”potentially enabling competitive advantage and/or growing the size of the market at a faster rateLinks
6、price paid with value delivered Reflects strategic objectives, customer needs and demand elasticities and competitive environmentCaptures a greater share of the consumer surplus (better fit customerswillingness to pay)Provides a framework for price changes and negotiationsSupports Clients financial
7、and strategic objectives Initial Client ObjectivesEnd-StateCurrent StateCLIENT EXAMPLE 1: DEVELOPING A PRICING STRATEGYThe following example involved the development of a new pricing strategy for an information services client with multiple products(i.e.,content) in multiple media platformsA-PDF MER
8、GER DEMO11The key takeaways from our analyses led us to Seven Pricing Principles, which acted as decision criteria in the initial development of the new pricing strategyPrinciple 1:Usage Should Not Be the Primary Driver of Online PricingPrinciple 3: Price Optimal Medium at a PremiumPrinciple 5:Explo
9、it Differences in CustomersWillingness to PayPrinciple 4: Price and Package Primarily by Topical Practice AreasPrinciple 6: Exploit Competitive AdvantagePrinciple 2:Price Based on Intellectual Property ValuePrinciple 7:Simplify Pricing Internally; Ensure Flexibility ExternallyEnsure Strategy is Impl
10、ementable DECISION CRITERIAA-PDF MERGER DEMO12However, as the strategy developed further, new decision criteria were added to the original Seven Pricing Principles to meet a number of customer requirements and company objectivesPromote sale of owned contentEnhance the value of “commodity”information
11、Minimize cross-cannibalizationProvide framework for evaluating product development needsPortfolio Management Price Setting Go to MarketMeet the needs of different customer segments / allow for greater price discrimination (e.g. size, PA)Encourage cross-portfolio buyingProvide framework for “up-selli
12、ng”and “down-selling”Position offline as a legal research expenseSupport cross-selling, segment development, and market share gainProvide sufficient flexibilityInternalExternal / customerLink price paid with value-deliveredEstablish list price integrity Reduce / limit deep discountingADDITIONAL DECI
13、SION CRITERIAA-PDF MERGER DEMO13Different pricing models were developed and then assessed using the decision criteriaCasesNewsTreatisesShepardsTier I Tier II Tier III$A Priced CasesPublic Rec.“lower-valued”content “higher-valued”contentTier VIFormsCodesTier V TierVI .$B Priced Codes$C Priced News$D
14、Priced Treatises$E Priced Shepards$F Priced Public Records$G Priced FormsPrices increase by levelLowest Price Highest PricePractice AreaFederal PolicyTaxReal EstateBasic A B CBundlesCATEGORY 1CATEGORY 2CATEGORY 3Bankruptcy Basic Jurisdictional package:Category 1: 1 Juris. Cases and Codes.1 Juris. Fo
15、rmsCategory 2: Several Juris. C+C/Forms,Federal C+C/FormsCategory 3: All Juris. C+C/Forms, Federal C+C/FormsBasic “Must-have ”Bankruptcy“Premium”BankruptcyPROPOSED CONTENT TIERING MODELRECOMMENDED PRACTICE AREA TIERING MODEL(ONLINE AND INTEGRATED ONLINE / OFFLINE VERSION)PROPOSED PRACTICE AREA MODEL
16、Legal: PALabor/ EmploymentIntellectual PropertyCalifornia(and other Jurisdictions)BasicAccessBankruptcyPremium Tiers (Bundles)General NewsGen. Public RecordsFinancial Non-LegalBasic: Cases in evaluating potential alliance partners for the client, several criteria were taken into considerationA-PDF M
17、ERGER DEMO225 High3 Medium1 LowStrong presence in U.S. and EuropeCWT expertise fits within consulting offeringWillingness to partner/ally Established relationship with CWTProactive managementComplementary resourcesCompetitor 1535315Client555555Competitor 2313335Non-competitor in travel consulting an
18、d travel supplier strategy development15 1Appropriate corporate contacts (CEO / CFO) 55 5Similarly, based on specific criteria, the client best serves as Company As partner in an alliance for travel consulting servicesPARTNER SELECTION (CONTD)A-PDF MERGER DEMO23As -needed partnershipMergerStrategic
19、allianceJoint ventureTime to market2145Business risk2353Structure1253Market overlap1153Business disruption1153Skillsoverlap1153Investmentlevel32535 High3 Medium1 LowLowHigh PriorityIn addition, a different set of decision criteria were used to evaluate what type of alliance made the most sense; a st
20、rategic alliance resulted in the two firmscapitalizing on the existing market opportunity with minimal disruption to each firms core businessesRECOMMENDED TYPE OF ALLIANCEA-PDF MERGER DEMO24Scenario EnvisioningA-PDF MERGER DEMO25Collect & Synthesize DataAssess FindingsIdentify SolutionsScope Problem
21、 & ApproachDevelop Team and Manage Project Admin.Communicate RecommendationsSolve the Problem Compelling Solutions with Client Buy-InRandom, Unrelated IssuesComprehensive, DefendableRecommendationsScenario Envisioning is used to assess how forces in an industry or a market might combine to deliver c
22、ompetitive advantageA-PDF MERGER DEMO26This module has several objectives.OBJECTIVESTo review the Scenario Envisioning processTo identify and understand the uses of Scenario Envisioning in Strategic engagementsTo participate in a Scenario Envisioning Case StudyA-PDF MERGER DEMO27 and key learningKEY
23、 LEARNINGScenario Envisioning can be used to assess the industrys future opportunities and threats as measured by:Competitive ReactionBusiness SystemsCustomer ResponseSupplier ResponseImpact of Government Regulatory PolicyDegree of Technological ComplexityScenario Envisioning can be used to develop:
24、Business Strategies New Product DevelopmentMarketing Strategies Infrastructural DesignPricing Strategies Distribution Channel AssessmentInvestment AllocationsA-PDF MERGER DEMO28THE STRATEGIC ROLE OF SCENARIO ENVISIONINGScenario Envisioning can be used to develop strategy in a market which is undergo
25、ing or needs to undergo changeStrategy FormulationSituation AssessmentPerform Company AnalysisPerform Competitive AnalysisInternalExternalCreate Strategic OptionsEvaluate OptionsSelect OptionsPerform Customer AnalysisStrategy EvaluationWhat is happeningin the market?What will be the responseto the s
26、trategy? What options maximize competitive advantage?What are thepossible strategies?A-PDF MERGER DEMO29Scenario Envisioning is a powerful strategy development approach for companies in any industryIndustry Driver ImpactNew entrantsNew/substitute productsNew marketsM&A activityShifting business mode
27、ls and economicsTechnologyRegulationConsumer DispositionHIGHLOWLOW HIGHEnvironment Driver ImpactStatic IndustrySlow Incremental Change (e.g. Mining)Transforming IndustrySteady Evolutionary Change (e.g. Packaged Consumer Goods)Dynamic IndustryRapid Discontinuous Change (e.g. ICE)Develop and update st
28、rategy in a rapidly changing environmentEvaluate Strategic Positioning as industry transformsCreate competitive advantage Potential SE ApplicationA-PDF MERGER DEMO30We has developed a ten step approach for strategy practitioners to use to develop scenarios, simulate business outcomes and formulate c
29、lient specific strategiesStep 1:Step 2:Step 3:Step 4:Step 5:Step 6:Step 7: Define the broad future industry/market contextIdentify paramount forces that will shape this contextIdentify boundary parameters of the paramount forcesDevelop hypotheses explaining how the most powerful forces interactCreat
30、e a set of scenarios within these boundary parametersTest credibility of scenarios by assessing viability of enabling eventsPlot the evolutionary paths of the scenariosStep 8: Simulate business outcomes such as consumer preferences, business systems and competitive actions Assess clients capabilities in context of scenarios and business outcomesDevelop and select portfolio of optimal strategies, compare to currentAssess Capabilities and Develop StrategyDevelop Future Industry ScenariosStep 9:Step 10:A-PDF MERGER DEMO
