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Business Development               

Approaching business development means a diagnostic appraisal of products, systems, equipment, facilities and processes, all based on an assessment of positioning in the industry structure.

Industry Structure - define where you stand

Note there can be slight variations from industry to industry
* Tier 1 companies do not have to be multinational billion dollar organisations   
* The reality is that Tier 4 companies do not supply Tier 1 companies
* Each tier has defined roles and responsibilities
* Operating within the tiers saves costs of the market intelligence system
* The tiers also define the customer characteristics in each tier
Industry roles and returns

* Develop your core competencies to suit your place in the structure, if you want to increase your profitability * * invest in development that will move you through the tiers.

The task is to align your operation to the business you choose to be in.
* Acquire the resources, finance, people, assistance that will facilitate the move
* Use external resources where short term expertise will accelerate entry 

Characteristics of the tier
 
Tier 4 

* T4 manufacture to print but they can carve out supply niches through use of advanced manufacturing equipment, this also overcomes quality issues
* Access to limited technology, overcome this with off the shelf support systems
* No investment in products, R& D, development is at customer expense

Tier 3

* Niche market operators, with high level skills but limited spread of resources
* Product and technology focussed, continuously upgrade specifications
* Have a long term view of industry and projects

Tier 2

* Develop high levels of ability and resources as this is their competitive edge
* Large scale operations, high investment in facilities, plant and machinery
* Specialised product and systems expertise, state of the art plants
* Massive marketing budgets to influence industry use
* Operate in large market areas with extensive distribution systems

Tier 1

* These companies control industry development and direction,
* Look for the restricted industry associations that ensure these companies operate in unison.
* Tier 1 companies focus on their operations, ensuring their alliances fulfil their project needs

Moving between the tiers

* The only logical move is ascending through the tiers, it make no sense to move into low profit, build to print areas
* Moving from tier 4 to tier 3 means development of niche products
* Niche products are those where you control the design, marketing and every aspect of the development.

* The benefits of tier 3 are increased profitability and possible market dominance.

Understand the industry where you intend to operate, define your place and strategically plan your moves.

 
   

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