【正文】 t positioning Cost/efficiency management Laser Inkjet (Sales work) (Distribution) (Reputation) (Brand) Segments Extremely relevant Somewhat relevant Irrelevant 19 ? Necessary capabilities in order to succeed in the industry Privileged assets Distinctive petencies COMPETITOR CAPABILITY COMPARISON APPLIED TO LEXMARK Distribution/sales work Brand/reputation Innovation Cost/efficiency management Lexmark HP Epson ? ? ? ? ? ? ? ? ? Formed own account teams。 Revenue PhP million Operating margin Percent x (1 tax rate) Percent x Market share Percent Industry sales PhP million x 0102039。9 7 39。9 9 39。9 6 39。9 8 39。0 0020040060039。9 7 39。9 9 39。9 6 39。9 8 39。0 012141639。9 7 39。9 9 39。9 6 39。9 8 39。0 005101539。9 7 39。9 9 39。9 6 39。9 8 39。0 0ILLUSTRATIVE 26 ? TREND ANALYSIS – CASH The cash flow tree can be disaggregated to show the other relevant KPIs of a BU Cash flow generated PhP million Operating cash flow PhP million Investing cash flow PhP million + Net ine PhP million Noncash expenses PhP million + Change in working capital PhP million + 020406039。9 7 39。9 9 39。9 6 39。9 8 39。0 03132333439。9 7 39。9 9 39。9 6 39。9 8 39。0 0020406039。9 7 39。9 9 39。9 6 39。9 8 39。0 0020406039。9 7 39。9 9 39。 Revenue USD M Operating margin Percent x (1 tax rate) Percent x Market share Percent Industry sales USD M x 2934302701020304039。9 3 39。9 5010020030040039。9 3 39。9 505001 , 0 0 01 , 5 0 039。9 3 39。9 501 , 0 0 02 , 0 0 03 , 0 0 04 , 0 0 039。9 3 39。9 51214131105101539。9 3 39。9 569707139。9 3 39。9 51298 1005101539。9 3 39。9 501 0 , 0 0 02 0 , 0 0 03 0 , 0 0 04 0 , 0 0 05 0 , 0 0 039。9 3 39。9 5NOT EXHAUSTIVE 28 ? INTANGIBLE ASSET CHECKLIST ? ? Intangible assets Ways to extract nearterm value ? ? ? ? ? ? Talent ? Highly motivated and petent workforce leveraging specific skill sets to – Generate growth – Improve/increase pany intangibles ? ? ? ? ? Intellectual property ? Patents generating licensing fees ? Understanding of customer behavior ? Risk management ? Software ? Network ? Interconnected webs of parties ? Nonexclusive ? Additional member lowers costs, increases benefits ? Brand/image ? Inherent image or brand built upon excellent service and product offerings ? Lower search costs for customers ? ? ? ? ? 29 ? ?Technology for products ?Networking software INTANGIBLE ASSET ASSESSMENT APPLIED TO LEXMARK Intangible assets Ways to extract nearterm value ?Customize to suit industry segments currently not served ?Develop related products that may use working software inhouse or via partnership ?Sales force engineers ?Develop the best product to suit identified customer needs Talent ?Relationship with suppliers ?Good working relationship allows better capture of production efficiencies that improve product cycle time and cost efficiency Network Intellectual property NOT EXHAUSTIVE 30 ? STRATEGY ARTICULATION ? Where are you going to pete along these dimensions and why: – Target market – Distribution channels – Product (breadth and depth) – Geographic scope ? Target customer definition ? Benefits that you will offer the customers ? Product pricing ? Position against petition vis224。S VALUE PROPOSITION FOR LASER PRINTERS 35 ? ? Flash memory allowing instantaneous printing and updating of forms in multiple locations ? Duplex printing – ability to print on both sides of paper ? Paper trays to handle three or more sizes of paper and forms ? Technical service support to help with systems design and product problems ? Targeted to segment needs ? High quality ? Technologically advanced ? Competitive price Slight premium Banking Price Benefits Why choose Lexmark? Slight premium Pharmacy TAILOR VALUE PROPOSITION TO VARIOUS CUSTOMER SEGMENTS ? Ability to print prescription labels without jamming (due to spacing of rollers) ? Technical service support to help with system design and product problems LEXMARK EXAMPLE Segment 36 ? BUSINESS MODEL Understand value desires Select target Choose the value Value proposition Design product/ process Procure, manu facture Distri bute Provide the value Service Price Define benefits/ price Sales message Communicate the value Business model: ? Integrated set of actions to provide and municate the value proposition to customers Segmentation Value proposition Adver tising Promo tional/PR Value delivery system (VDS) Each BU must address these 2 issues to define their business model Illustration of how the value proposition will be provided and municated Identification of existing strengths that can be leveraged and required capabilities that need to be built to be distinctive in chosen value delivery system 1 2 37 ? LEXMARK LINKED VALUE PROPOSITION TO CHANGES IN BUSINESS SYSTEM Product Design Process Procurement Manufacturing Distribution Marketing Sales AfterSale Service Provide the Value Communicate the Value ? Highlycustomized to customer segments ? 12 month design cycle ? Fully crossfunctional ? Limited to specific target segments ? Inhouse control of critical technologies ? Outsourced only noncritical ponents ? Utilized preferred suppliers ? Kept high value added processes inhouse ? Improved flexibility and reduced product cycle time ? Minimized changes in produ