Please enable JavaScript.
Coggle requires JavaScript to display documents.
G3_[BS-4] Strategic Positioning and Strategic Renewal, Strategic Renewal -…
G3_[BS-4] Strategic Positioning and Strategic Renewal
an effective strategic leader
difference between success and failure
making critical decisions at the right time
common sense decisions
to prioritize which are the most important and need the most time and attention and focus
weighing short-term benefits
use the experience and judgment and thought to figure out whether it's important
framing dreams as the next big version but lack of tactical plans
a great listener and understand your people, but also encourage open discussion
really, really understand you yourself as a leader
your philosophy
your passionate in leading people
talk to people that are in non analogous companies or industries (MBA)
to be acquisitive about things and to never think you know everything
humility
understand what your skills, strengths, weaknesses are
find areas that really take advantage of those strengths
surround yourself with people that can address the weaknesses
understand everybody's strengths and weaknesses
spend a lot of time talking to customers, never try to insert sales or marketing
competitive advantages
Differentiation advantage
Emphasizes value creation for customers
Dope out what kinds of things might drive customer value
Ex.product features(phone market)
service(hotels), customization (Starbucks)
Work out how to use resources, capabilities of the firm system of activities to create that value.
Cost leadership
Controlling costs and reduce the expense of producing the company's product or service.
influencing factors
A key idea behind these cost drivers exercise is to study the business and prioritize.
Step 1： Where are most of the cost being incurred
Step 2：Try to reduce these costs
Ex. Managerial inefficiency (bureaucracy)
Cost & Value in different situation
How exactly a company can produce a cost or differentiation advantage over its competitors?
(1) Need to understand what drives cost or customer value in a particular business
(2) Figure out how the firm's internal capabilities, resources or activity systems, that is its value chain or value network can be modified, enhanced, and applied to these cost or value drivers.
Four possible generic strategies
Differentiation and narrow scope
Cost leadership and narrow scope
Experts' opinions
Value proposition
compliance, quality, cost savings, and cycle time
very important
joining ecosystem and learn more
the comprehensiveness of platform, the duration of the sale, the stickiness of our platform
Differentiation
across different dimensions
across transparency and clarity of product
across ease of use and real time in nature
across service and customer orientation
is across regulatory environment and scheme
ensure that hit target market with a value that they need
different industries responded to different aspects of that messaging depending on really what was most important to them
Dual Strategies
reduces cost
increases customer value
Failed Example
Saab
Reduce cost by economizing on the fixed costs of design components .
Lose Differentiation
fundamentally different business model(or significant managerial innovation)
Successful Examples
Dell
Customize
Cost savings
Honda and Toyota
TQM circle (total quality management)
Keep costs in check
Quality is free
LEGO case study
background
a toy brand of plastic interlocking brick
a private company based in Denmark and was founded by Ole Cristiansen
success in the 1980s and 1990s
elements of success
core product
consumer can use highly versatile component to creat their imaginative time
growth of the company
geographical growth
growth of the toy sector
diversified development
Legoland、Lego Mindstorm、robotic bricks、TV program、movie
crisis
reason
external environment
increased price competition in the toy industry
internal environment
the shape and color of Lego bricks increase manufacturing costs
result
Lego toys become expensive,sales began to stagnate
diversified development failed
turnaround
Strategic Positioning
cost leadership
outsource manufacturing to China bur only for a while
implement a more constrained and focused model of innovation
Strategic Renewal
focus on Lego brick and the Lego system of play
many unrelated diversifavation moves were reversed
environmental changes
US electronics retailer Circuit City
booming at 1981-2000
excellent customer service(in-store)
customer can find several goods in their entity store clearly
getting worse in 2008
making a string of loss
wrong leadership strategy
great recession
there are more threatening competitor with lower cost like Walmart/Amazon
what's worse is happened on strategy to handle with its stock price
talent loss
losing strategic alignment
Nokia,Blackberry VS Apple,Samsung in wireless phone
dynamic capabilities
which means how soon and correctly a establish can manage all their source including people or other entity goods when they are facing problem
leader can fix their problem with dynamic capabilities framework like 3P framework
Processes
Positions
Paths
Strategic Renewal
environmental changes
US electronics retailer Circuit City
booming at 1981-2000
excellent customer service(in-store)
customer can find several goods in their entity store clearly
getting worse in 2008
making a string of loss
wrong leadership strategy
great recession
there are more threatening competitor with lower cost like Walmart/Amazon
what's worse is happened on strategy to handle with its stock price
talent loss
losing strategic alignment
Nokia,Blackberry VS Apple,Samsung in wireless phone
dynamic capabilities
which means how soon and correctly a establish can manage all their source including people or other entity goods when they are facing problem
leader can fix their problem with dynamic capabilities framework like 3P framework
Processes
Positions
Paths
