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Strategic Positioning & Strategic Renewal, Phoebe - Coggle Diagram
Strategic Positioning & Strategic Renewal
Generic Business Strategies
1、Apply to
different firms
&
different contexts
//
2、Help companies
achieve strategic fits
Competitive Advantage
Differenciation Advantage
1、Unique products / Services
(Compared with competitors)
Creating value (for customers) → Produce higher EVA & Profits
2、Price premium
Cost Leadership
2、Lower costs
1、Similar products / services
(Compared with competitors)
Controlling costs → Generate EVA & Profits
Low Cost Strategy ≠ Low Price Strategy
Example
Department store industry
Cost Leadership
Differentiation Advantage
Nordstrom, Bloomingdale's
Walmart
Group Members
Fion
Jerry
Adiyasa Gao
Anna
Levi
Pete
Phoebe
Strategic Renewal 👌🏻
What is strategic Renewal?
Dynamic capabilities
capabilities enable company to change resources and capabilities
products development,alliance or organizational transformation
Circuit City
2008
bankruptcy
competitors
big box store
Walmart
internet retailer
Amazon
lose its advantages
cook the books to rise its stock price
laid off talented salespeople
1982-2000
Great success
Good customer service
Leading edge logistics
ensure people find their products
Importance of strategic
3P Dynamic capabilities framework in Fuji Film
Position
resources available
intellectual property
knowledge, film paper and photo chemical business
Path
Opportunities and Strategic options
Film technology
LCD and touch screen industry
chemical knowledge
ASTALIFT - the cosmetic industry
Process
rountines
intellectual development
meticulous product development, marketing development process, engineering development
Executive Expertise: Strategic Positioning 👌🏻
What is feature war?
software vendors trying to outdo each other on who has more features than the other.
how to avoid feature war?
try not to sell specific features or sale against someone else's lack of a feature
try to position ourselves on an overall offering and say that overall
sell on the basis of the overall company
focused on more differentiation
One is across transparency and clarity of product, one is across ease of use, real time in nature
provide so much value to the relationship and build so much brand value with the customer.
you'll end up in the undifferentiated middle
If people can't say why they choose your company , then they won't know why they're staying.
Its hard to reach the satisfaction
Big company didn't really care about cost savings
Gas industry, or the mining industry, they cared entirely about safety and compliance.
Because for them, being first to market or being able to get something done faster was the most important thing to them.
They just wanted to make sure that compliance was done because safety was the most important thing to them
Executive Expertis: Strategic Renewal 👌🏻
What are some key sources of competitive advantage for your business?
Scale
The amount of capital
The people and personnel
The skill
Technology and Analytics
Price Risk
Brand
Long Period
How do you ensure that your business sustains its competitive advantage?
Constantly question every decision in every known answer
Willing yourself
Never feel enough
Stopping improvement
Always looked out at competitive field
Never satisfied with your current status
Never underestimate the young
Advice from Our Experts
Be an effective strategic leader
Judgment the order of priority
Common sense decision
Experience
Judgment
Thought
The ability to realize the strategy
bootstraps :red_cross:
Be a great listener
Education
Widen your horizon
Hypothesize boldly
Fieldglass
Mechanical Turk
Low cost experiments :red_cross:
Humility
Critically understand what your skills ,strengths and weaknesses
address the weaknesses
Widen yourpublic relationship
Talking to customers
Management pet account
Dual Strategies 👌🏻
Lowering costs
Integrated strategies
Trying to do both it is very difficult
EX.(Saab)
economizing on the fixed costs of design components and tooling
they lost what made it unique and set it apart from other car
special
reduce cost
that prove why try to do both it is hard
Different business model or at least a significant managerial innovation
EX.(Dell)
Allow users to customize their computer
Avoid the costs of buying parts and holding them in inventory or of making computers that may not sell at retailers
EX.(HONDA & TOYOTA)
Adoption of total quality management practices in their design and manufacturing
Keep their costs in check
Increasing customer value
Phoebe
Executive Expertise (Strategic Positioning)
Fieldglass
Sean Chou
:red_cross: lower price basis
:check: Premium Price Offering
Feature War
nature of what we did/ platforms
comprehensiveness
sale duration
stickness
Competition of Feature War :red_cross:
what one's product happens to be & what happens to be important to people :check:
Country Financial
Kurt Bock
Cost structure
Position
Service Space
Value Add Space
Financial Security
Insurance
Price play
Target Market Needs
Advice
Avant
Al Goldstein
Differentiation
Dimensions
Ease of use & real time
Transparency & clarity
Service & Customer orientation
Regulatory environment & scheme
Differentiation
customer relationship value
brand value
Cost
Challenge
not being a
bank
cost of capital = 0
Different Industries
Different Perspectives
Different Values
Generic Strategies
Competitive Advantage
Cost Leadership
similar products/services
(Lower cost)
control costs for economic value generation
maintain comparable value creation to average industry competitior
Drivers of Cost Advantage
Input costs
Production techniques
Production design
Scale/ Scope Economies
Capacity utilization
Organizational/ managerial inefficiency
Differentiation Advantage
unique & different products
(a price premium)
value creation
(higher EVA & profits)
Differentiation
Increasing value
Cost containment
Differentiation Value Drivers
Customers' Value Drivers
Insights
Market Research
Common Value Drivers
(Customer Perception)
Customer Service
Customization
Product Features
Complements
Delivering Value
Resources
Capabilities
Activities
Positioning & Competitive Scope
Broad Cost Leadership
Broad Differentiation
Narrow /
Focused
Cost Leadership
scale & economies may not matter
Avoid costly customer segments/ channels
Low cost model
IKEA, Checkers & Rally, GEiCO
Focused Differentiation
Narrow marget segment
Exclusivity
Cost
Jerry
Pete
Levi
Adi
Fion
