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Competitive Strategies: Technology Leadership Cost Leadership Customer Focus Imitative

The document discusses Xerox's strategies for technology leadership, cost leadership, and customer focus. It also covers market segmentation, evaluating new product opportunities, balancing the product portfolio, resource allocation, and project timing. Technology trajectories and product platform planning are key considerations for Xerox's digital product development.

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sumikannu
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64 views10 pages

Competitive Strategies: Technology Leadership Cost Leadership Customer Focus Imitative

The document discusses Xerox's strategies for technology leadership, cost leadership, and customer focus. It also covers market segmentation, evaluating new product opportunities, balancing the product portfolio, resource allocation, and project timing. Technology trajectories and product platform planning are key considerations for Xerox's digital product development.

Uploaded by

sumikannu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Competitive strategies

Technology leadership Cost leadership Customer focus Imitative

Market Segmentation

Technology Trajectories
Product Platform Planning Evaluating Fundamentally New Product Opportunities Balancing the portfolio
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Competitive Strategies

Technology leadership Basic R & D


Cost leadership Superior manufacturing methods; Design for manufacturing to reduce costs Customer focus Rapid development of derivatives through carefully designed product platforms Imitative Fast development process

NOTE XEROX: Paradigm shift in business practice to participate in digital revolution of office aligned with the growth of the Internet. from print & then distribute

to distribute & then print

Market Segmentation: Market Segment Map

Exh 3.4: Product segment map showing Xerox B&W digital products and the competition in three markets (Segmentation based on number of users sharing office equipment) . Key performance dimensions pages per minute & networking capability

Technology Trajectories
Exh 3.5: This technology S-curve illustrates that Xerox believed digital copier technologies were just emerging and will improve product performance in coming years. Xerox believed that it could develop a full-featured digital copier in the near future with performance exceeding that of light-lens copiers.

Q: How near or far is the ultimate performance limit?


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Product Platform Planning: Platforms vs. Derivatives


Platform Set of assets shared across a set of products (e.g. components & sub assys) Derivatives For different segments

Exh 3.6: A platform development project creates the architecture of a family of products. Derivative products may be included in the initial platform development effort (Platform A) or derivative products may follow thereafter (Platform B)

Product Platform Planning: Technology Roadmap


Exh 3.7: This technology roadmap shows the life cycles of several digital photocopying technologies & identifies which technologies would be used in each product. For Lakes platform Higher speeds and color capabilities required of its derivatives.

Note: decisions about product platforms are closely related to the technology development efforts of the firm

Evaluating Fundamentally New Product Opportunities


Some criteria for evaluating fundamentally new product opportunities:
Market size (units/year * average price)

Market growth rate (percent per year)


Competitive intensity (#competitors & their strengths) Depth of the firms existing knowledge of the markets

Depth of the firms existing knowledge of technology


Fit with the firms other products Fit with the firms capabilities

Potential for patents or other barriers to competition


Existence of a product champion within the firm

Balancing the portfolio

Ex 3.8: The product-process change matrix


The extent to which the project involves changes in the product line and/or the production processes Helps identify projects breakthrough opportunities as well as incremental improvements

Firms typically benefit from a diverse set of projects Firms choice of competitive strategy influences product development portfolio:
(FIRM STRATEGY) (PORTFOLIO) LOW COST STRATEGY MORE OF PRODUCTION PROCESS IMPROVEMENT PROJECTS HIGH PRODUCT VARIETY DERIVATIVE PRODUCTS UPON EXISTING PLATFORMS TECHNOLOGICAL SUPERIORITY TECH DEV. & BREAKTHROUGH PROJECTS
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Extent of Production Process Changes


Research and Technology Development
New Core Process Next Single Tuning and Generation Department Incremental Process Upgrade Changes No Process Change

Extent of Product Changes

New Core Product Next Generation Product Addition to Product Family

Breakthrough Development Projects Platform Development Projects


Lakes Project

Minor Product Enhancement


No Product Change

Derivative Product Development

Current Product/Process Support


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Resource Allocation

Careful use of the limited development resources Avoid starting too many projects. May result in: Aggregate Product Planning (Exh 3.9):
Skilled engineers and managers stretching their capabilities Affects productivity, time-to-market, quality, and profitability makes efficient use of resources within budgeted resources

Project Timing

The Product Plan (Exhibit: 3.2)

Timing of product introductions Technology readiness Market readiness Competition

Set of projects approved by the planning process and sequenced in time. Mix of: Fundamentally new product, platform and derivative projects. Updated periodically as a part of the strategic planning activity.
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