MKTG 2030 Chapter Notes - Chapter 1: Siemens Healthineers, The Home Depot, Dollar General
19 Apr 2016
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What sets winning organizations apart from their competitors. Fact: less than 5% of companies maintain a total return to shareholders greater than their industry peers for more than. Research study was conducted to answer this question. Researchers followed 160 companies over 10 years. these companies were divided into 40 industry groups of 4 each. The 4 companies in each group were similar at the beginning. At the end of the study, some were winners (metric: total shareholder return). The home depot - strategy: giving customers the tools and confidence to do to job themselves without needing a contractor. The new ceo pushed the contractor business into the model, streamlined operations, cut costs, cut worker incentives plans, etc. Winning organizations devise and maintain a clearly stated, focused marketing strategy. Begin with a value proposition based on deep understanding of customers. Successful example: dollar general sells quality products at a low price to fixed low income customers.
