Etapa de gestión ambiental amigable.

As discussed in the introduction, the value of this research not only lies in the theoretical developments, but in the practical usage of these methods for product portfolio analysis with in companies.

The following sections will discuss how a company may use these findings to develop their own models and interrupt the results, including conducting research, modifying the model and potential constraints.

Even those with years of experience in a market can overlook detail or become out of touch with the current market dynamics (Blackwell, 2011). As seen in this dissertation, extensive research is required to enable the development of a reliable game model, and even some of the industry “experts” interviewed had opinions that were contradicted by market research and the game model results. It is important to undergo a full investigation as recommended in these coming sections.

5.4.1. Defining The Game

This section details the recommended process a company may undertake to define the structure of their game model and the parts therein. These recommendations are based on methodology experience from this research (see Chapter 3 for more detail), resource questions covered during the case study research (Day, 2011; Blackwell, 2011; Holiday, 2014) and feedback from the case company during the findings presentation (Day & Holiday, 2015).

To ensure continuity and reliability in the model, it is recommended that the model be designed in a top-down fashion (Roberts, 2008) after defining research questions based on the company or product strategic goals. The steps to undertake are:

a. Understand the company goals/questions b. Define the market dynamic

c. Analyse the competition and customer behaviour

5.4.1.1.

Company Strategic Goals

Before undertaking this research a clear understanding is first needed on the research questions or goals of this project. These research goals will be based on your company strategy, branding and the product portfolio goals.

In the UK Motor insurance industry there are a number of typical company strategies, including: Mergers & Acquisitions, Niche Marketing, Risk Reduction, Large Marketshare and Brand

Diversification (Blackwell, 2011; Insurance Times, 2014). Each of these company strategies would change the format of the game model, primarily the player utility functions. The player utility, as mentioned earlier, defines the value (perceived or actual) of a given product portfolio. The strategy will change the factors of the player utility to include both quantitative factors (profits, costs, risk, growth, marketshare etc) and qualitative (good will, brand image etc). Corporate messaging is the first source for company strategy measures, else directly from management or the marketing department.

Branding and the branding strategy can have an impact on the choice in product portfolio strategy, and should be taken into account when developing the game model. The product portfolio would not be a strategic fit if the pricing is high and the branding message is as a low cost provider, or visa-versa. When developing the player utility, this strategy can be accounted for as a qualitative measure or you can simply remove those potential product strategies from your player strategies; however, do not remove these strategies from your competitors, for this would misrepresent the market dynamic.

Although it may seem obvious that maximising the product portfolio, within the corporate strategy, is the goal, there maybe a more detailed goal around how this portfolio is maximised, or acceptable modifications that would be non-optimal. For instance, product cannibalisation with in the portfolio. Normally the goal is to minimise the product cannibalisation to maximise the portfolio potential (van Heerde, 2010); however, cannibalisation may be accepted if the portfolio achieves other objectives. Ensure all product and corporate targets are included in the player utility function to ensure the product portfolio is optimised to meet the company's specific needs.

The company market goals will also change the type of game applicable to the research questions, as well as the player utility function. As discussed earlier, the player utility function should represent all of the qualitative and quantitative items of value to the company in releasing a given product strategy. The game model used may also be changed to represent the research question. If the market goals are to maximise profits, the game model would be a general game. Whereas, if the market goals are to maximise marketshare, a better fit to gain product insights would be the zero-sum game model.

5.4.1.2.

Market Dynamic

This section will address the design of the game model based on the specific target market dynamic. Primary research on the market dynamics, competition and consumer positioning is required. There are several professional frameworks that were utilised in this research that would be useful in a company setting. The extensive case study research is more than is required for most company applications.

The game model is based on the dynamics of the market in question, therefore a clear and unbiased understanding of this is required. Porter’s five forces (Porter, 1979) is a simple first level framework that would highlight the primary mechanisms and clarify where further research may be necessary. During this process the following three questions would help define the type of game model necessary:

a. Who are the players and what are the player types? b. How is the market moving?

c. What are the product or competitor alternatives?