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BS-4, advice form experts, LEGO, cost factor, image - Coggle Diagram
BS-4
Strategy
Environment
Firm's competitive advantege
How to choose the strategic position
Everything is changing
loss competitive advantage
Capability of strategic renewal
How to fit
Dual strategies
example
Fail examples.Saab
Introduction
An aircraft manufacture
Bankrupt in 2011
GM acquire 50% of Saab in 1989
Struggle to make profits with its tradition differentiated positioning
Failed reason
Pursue saving costs to make profit
Unable to retain key factors to support
original differentiation positioning
Successful examples
Honda / Toyota
High quality - Customer value
Dell
Highly flexible production process - Customization
Differentiation
A clear disciplined way of managing the cost
differentiation trade off
Definition
Integrate elements of cost reduction with
some element of differentiation
So-called
Strategy of dual advantage
Integrated strategies
generic business strategies
cost leadership
lower cost
:star:cost down factor
:red_flag:
broad scope
Walmart
narrow scope
IKEA
driver-thru
generated EVA
value creation
cost-control
maintain comparable quality
not a low price strategy
differentiation advantage
products or services are unique
add value
factors that can affect customer
customization
:red_flag:
broad scope
narrow scope
luxuary
Strategic position
Strategic renewal
eg.Circuit City
Company's action
Used cash to buy back shares
Fired people replaced with low-paid employees
Introduction
Performed well in 1982-2000
Bankrupt in 2008
Had a differentiation advantage
Excellent in-store customer service
Leading edge logistics
Failed major reason
Increase competition from discount / online retailers
Brankrupty
Unable to adapt overall strategy to new environmental reality
Without Dynamic capabilities
reason
environmental change
lost advantage
internal decline
Dynamic capabilities
3P
Position
similarly resource to use
fuji
deep knowledge
strong intellectual property
Path
dependent on former ones
developed new business
fuji
LCD screens and touch screens
make up business
Process
encoded activities to be effective
fuji
meticulous product development processes
marketing processes
systems engineering processes
enable companies to change their resource or capability base.
future aspect
alliances
new product development
organizational transformation
business development,
Summary
Leader set the strategy
Mission
Vission
Value
Incorporate analyses
Internal
External
Building competitive advantage
Cost leadership
Differentiation
Dual strategy
Success
Overcome the stuck in the middle
Strategic renewal
Dynamic capabilities
Failure
Stuck in the middle
Strategic renewal
advice form experts
hard skills
prioritize which are the most important things on the lists
use the experience and judgment
have big dreams
a tactical plan to get there
thirsty in new things
never think you know everything.
making a few critical decisions at the right time
data
how can you do the lowest cost way to test your thesis
technology
improving your margins.
soft skills
understanding
yourself
philosophy to be a leader
passionate
weaknesses
your people
surround yourself with people that can address the weaknesses
be a great listener
talk to analogous people
talk to customers
encouraging open discussion
admit when you're wrong
open about the fact that you will be wrong
LEGO
introduction
1990s
began diversifying
Lego Mindstorm
robotic bricks
Legoland
video games
began licensing in characters from popular culture
1999, star wars
late 1990s
suffered massive losses
many of its diversification efforts not going so well
large number of Lego shapes and colors inflating its costs
sales began to stagnate
Jorgen Knudstorp
renew strategy
refocus the company
Lego system of play
Lego is an amazing success story in the toy industry today.
many of the unrelated diversification moves were reversed
Lego brick
implement constrained and focused model of innovation
limit their designs by only using a fixed pre-approved set of pieces
case
very close to failing
the brick itself is easy to imitate now
the patents have expired
but
constant innovation with new products
differentiation through innovation is a key selling point for Lego
overall strategy
differentiation
philosophy and system of constraint or guided innovation
cost control
cost factor
cost driver
