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Blue Ocean Strategy at He

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OVERVIEW

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1876

GERM

A BraLke !ren

3Bu"ne""Area"Laundry #H$%e &are

&$"%etc"'

($letre"

Ad)e"*e(ec)n$l$ge"

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MarketHa"

Sl$+,$+n

Ra+Materal-rceIncrea"e

&$%.ett$rn Ad)e"*e (ec)n$l$gy

,ecrea"e ()er

-rce

&reate L(er% Stra!$r Ad)e

(ec)n$l

HOW

Problems

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E/ternal

en*r$n%ent

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GeneralEn*r$n%ent

1Demographic

2Economics

3Political

- Posibility of lower population in the future because of low bi- Customers higher aerage age will !ecrease typical age Hecustomers.

- Hen"el ha! increasing #nancials statements on $%%&-$%%'.-Hen"el sales reache! (3.%') million euro at $%%'* een e+p

billion euro in $%% on Hen"els !hesie /echnologies business sector.- Gasoline an! raw material has increase!.

- 0rom (11 until late (11%s* goernment sponsore! new bu- 2ater then* there is !ecreasing on public buil!ing licenses.

- /a+ incentie from ast Germany Goerment.

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eneralEn*r$n%entG

5Technological

- Hen"el o4ers superior pro!uct 5uality with innoation in eacpro!ucts.- /here is 6esearch an! 7eelopment !iision that only focusfeasibility.

- 8nnoating on healthier pro!ucts an! focusing on increment

4Sociocultural- 6eonation wor" still comparably high in Germany.- Hen"el :oins 8G Chemie* the in!ustrial union for chemical cothat was ery successful in negotiating higher wages.- ge limit of !oing 7;8 pro!uct :ust ,% years.- Women preferre! mo!els an! concrete samples.

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6Global

7Physical

- /here is posibility of new entrants that may cause price warpro!uction cost in another country is lower than in Germany

- /here are a few global player on this in!ustry.- Hen"el can get through arious mar"ets of customers.- /he lea!er of a!hesie mar"et globally.- 6eunion of ast Germany an! West Germany.

Pro!ucing enironment frien!ly pro!uct.

eneralEn*r$n%entG

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8ndu"tryEn*r$n%ent

8ntensity of 6ialryamong Competitors

upplier

few number ofsupplier hae

strong postition

argainiu

Price s

!IVE

!OR&E

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C$%.ett$rAnaly""

BOL(ON0H2 BAS!0-&I2O3 lea!er of a!hesie use!throughout urope an!become the bywor! a!hesiesin Germany an! ustriaS3 e+plore users increasinglyspeci#c e+pectationsA3 lea!er on a!hesie in!ustryespecially in urope&34 0ul#ll seeral segmentsnee!s4applie! seeralsustainability policy

5 &%@ of its turnoer is frome+ports

O3 to become an un!ispute!lea!er for waterproof tilea!hesies company

S3 to enhance the 5uality an!!eelop innoation for a longtime

A3 !eeloping an! innoatingof all their pro!ucts whichpurposes of ful#lling customersnee!s&34 lways !eelop an! improethe pro!ucts

5 only focuses on tile

a!hesies pro!ucts which :usta articular com etitor for

O3 to be mar"Germany marS3 cost lea!eA3 being mar

consumer preGermany&34 Haing low

than Hen"epro!ucts

4 lrea!y ha!5 lower 5ualit

than Hen"el

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Internal

en*r$n%ent

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6esources

!INAN&IAL

ey nancal" arencrea"ng

RE-(A(IONAL

1 -$neer $9%$dern :rand%anage%ent

; Brand %age

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Capabilities

!INAN&IAL

Ability to report

!inancial"s

company #ith

$etail% complete%

an$ up to $ate&

,IS(RIB(ION

Ability to choose

channels

$istribution&

MIN!OR

E!!ect

e!!icie

contr

comp

custo

HMAN RESOR&ES

(oti'ating%

empo#ering% an

retaining

employees&

MARE(ING

1& Ability to up$ate the

in!ormation about !orecasts%

sales% an$ issues&

2& )nno'ati'e a$'ertising an$

campaign o! bran$ name

pro$uct an$ company&

3& Ability in sales

representati'e #ith $irect

contact to customers&

MANAGEMEN(

1& Ability to mar*et

e+pansion&

2& Ability to ma*e

ac,uitition #ith a goo$

company&

3& Ability to $e'elop a

sub bran$ in each unit

company&

RES,E

De'el

inno'

pro$u

!uture

MAN!A&(RING

Design an$

pro$uction a

pro$uct #ith

goo$ ,uality an$

technology&

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Tangible Resources of Henkel Valuable RareCostly To

Imitate

Non

Substituable

Compe

Consequ

Financial Key financials increases Yes Yes No NoTemporary C

Advan

rgani!ational

1. Three area of competence

Yes Yes Yes YesSustain

Competitive . Sub brands

!. "roduct portfolio

P"ysical

1. #ased on $iisseldorf% &ermany

Yes Yes No NoTemporary C

Advan

. 'isted on the 'ondon Stoc( )*change

!. Appro*imately 1+ countries around the ,orld

-. Acuitition Adhesive and )lectronic /aterials

+. Sales Channel

Tec"nological

1. "roduct 0nformation

Yes No No NoCompe

$isadva.

)*ternal Thermal 0nsulation Composite

Systems

Intangible Resources of Henkel Valuable RareCostly To

Imitate

Non

Substituable

Compe

Consequ

Human

1. Sales Representative

Yes Yes Yes NoSustain

Competitive . "rofessionals

!. "roduct /anager Sub nit

Innovative

1. Advertising Campaign

Yes Yes No NoTemporary C

Advan. Ne, 2eatures

Reputational

1. "ioneer of /odern #rand /anagement

Yes Yes Yes Yes

Sustain

Competitive . #rand 0mage!. $irect Contact

Core Competencies

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Aalue Chain

SERVI&E

In"tallat$nRe.ar

MARE(INGSALE-r$duct.rcn

g

ad*ert"ng.r$%$t$n and

d"tr:ut$n&)annel" t$

%arket&$n*enence

&$%%uncat$n

O-ERA(IONS

-ackagn

g&$n*er"$n

Mantenance

O(BON,LOGIS(I&

,"tr:ut$ne/.an"$n

-ckng,el*eryS).%ent

INLO

Ma)a

Wa"n

086< 8=06>/69C/96

!nanceAcc$untngGeneral%anage%ent

H9O96C

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>WO/

Streng)t

Hg) nn$*at$n .r$duct

OCer %any .r$duct lne" Huge d"tr:ut$n c)annel

Eac) .r$duct )a" $+n%arketng %anager

O..$rtunty

&ra9t"%en " dr*ec$n"u%erD" :uyng

dec"$n Ger%an Market Satura

enter t$ $t)er c$untr

()reat

Hg) energy and ra%ateral .rce

Many c$%.ett$r" +t).rce"

Weakne""

($$ -r$duct Orented

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Blue $cean "trat

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BLE O&EAN are dened unta..ed %arket ".ace de%creat$n and t)e $..$rtunt

)g)ly .r$ta:le gr$+t)Blue Ocean

(. Create unconteste!mar"et space$.

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El%nate

Which of the factors thatthe in!ustry ta"es for

grante! shoul! beeliminate!?

Reduce

Which factors shoul!re!uce! well below t

in!ustrys stan!ar!

Ra"e

Which factors shoul!create! that the in!us

has neer o4ere!?

&reate

Which factors shoul! beraise! well aboe thein!ustrys stan!ar!?

lue Ocean 0ramewor"

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El%nate

number of sub bran!s ina!hesie technology

Reduce

Harmful chemical

Ra"e

/he innoation of pro!an! mar"eting strate

&reate

co-frien!ly safe pro!uctto 78; segments easy to

use for women

lue Ocean With

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c$nclu"$n

Henkel %u"t t$3

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Henkel %u"t t$3aEntry nt$ de*el$.ng c$untre" t$ ncrea"e

")are:(arget %aret t$ )g) end c$%%unty

c-r$duct nn$*at$n t$ all n $ne

Market de%and " an %.$rtant 9act$r n %:u"ne"" "trategy

Blue $cean "trategy can analye +t) e/ternnternal 9act$r

Act$n $9 c$%.ett$r" " a re9erence n deter"trategy

Su"tana:le "trategy 0ac)e*ng %$re +t) le"nn$*atng and ac)e*ng %$re +t) le"" +ll :

:ec$%n "u"tana:le