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SMMCG8[BS-4] Strategic Positioning and Strategic Renewal, G8 Group member,…

- - - - day-to-day operational decisions are only an evolution, a process
    - - be a great listener and understand your employees
      - open up your horizons
        
        having an opportunity to talk to people that are in non analogous companies and non analogous industries
        
        joining MBA programs
      - continually thirst to be acquisitive about things and never think you know everything
      - be critical of your own skills and find things that you really enjoy doing
      - spend a lot of time talking to customers
  - - - superiority
        
        flexibility and adaptability
      - weakness
        
        most of resources have been controlled by large established companies
    - - continuously build organically and evolve over time
      - constantly question every decision in every known answer because the reality is that things change quickly
      - be willing to critically challenge every assumption
      - looked at what customers want
        
        customers are going to come up with new things and new ideas
        
        it was really ultimately the way we judge ourselves
        
        customers are always want a lot more than we can deliver
      - never be satisfied with your current status
        
        having a long-term competitive advantage
    - - superiority
        
        have gotten to scale fairly quickly
        
        the people and personnel already have
        
        capital have raised
        
        skill level, technology and analytics already reached
        
        the industry structure is built by them
        
        the ability to price risk
        
        the better we could price risk, the lower the rate we can offer to an individual consumer.
      - weakness
        
        barriers to entry are decreasing
        
        have a harder time making changes
        
        competition advantage are difficult to sustain
  - - - join customer's ecosystem
      - try to position ourselves on an overall offering
      - features
    - - product innovation
      - across different dimensions
        
        across transparency and clarity of product
        
        across ease of use, real-time in nature
      - customer-oriented
      - compliance, quality, cost savings, and cycle time
      - low-cost, innovative, and have great service
- - - - Cost containment
        
        for cost-leadership companies
        
        example: Walmart,Carrefour, Costco and, Metro
        
        main strategy
        
        for other companies
        
        ensure that cost don't rise too much
  - - - scale and learning economies
        
        managerial inefficiency or bureaucracy
        
        drivers of low cost
        
        causing hidden cost
        
        a great opportunity to lower cost
      - To use the combination of activity,
        capability and resource to lower the input cost
        
        framework
        
        value chain
        
        value network
  - - - channel
      - service
        
        example: IKEA
      - price
- - - - saving costs unable to retain key features
      - any generic strategy constantly involves trade-offs
    - - Honda&Toyota
        
        total quality management
      - fundamental management innovations
      - Dell
        
        using a highly flexible production process
  - - - lowering costs
      - increasing customer value
    - - integrate some elements of cost reduction with some elements of differentiation
    - - leadership advantage
      - differentiation advantage
  - - - enable companies to change their resource or capability base
    - - processes
        
        activities and routines
      - positions
        
        resource positions
      - paths
        
        opportunity
- - - - product features
        
        smartphones
      - customer service
      - customization
        
        Starbucks
- - - - 1999-2003: Very tough years for sales and profits
        
        2002: 40% unsold Christmas inventory
        
        By 2003, the company’s survival is in question
        
        Higher price competition in toy industry
        
        Sales stagnate when no movie to promote characters
      - 1998: Large financial losses
    - - Product could go out of stock if even one component was missing
      - Uncontrolled innovation led to out of control costs
      - Each component needed expensive molds, production scheduling and holding inventory
  - - - conserves cash
        
        Plastic molding outsourced to Flextronics (China)
        
        Factories closed and 80% employees laid off
      - divests non-core businesses
        
        LEGOLAND sold to private equity firm Blackstone
      - Refocuses on LEGO brick and system of play
        
        imaginative play and story telling
        
        create environment (e.g. LEGO City)
    - - Strategic Renewal
        
        Strongly driven by consumer research and an understanding of how kids play
      - Strategic Positioning
        
        Emphasis on connection to company’s heritage and core values
- - - - main ways to build a competitive advantage