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(1) What is strategy? - Coggle Diagram
(1) What is strategy?
Rediscovering strategy
Reconnecting with strategy
Profitable growth
The Growth Trap
The Role of Leadership
The failure to choose
Emerging industries and technologies
Operational effectiveness is not strategy
OE Necessary but not sufficient
superior profitability through constant improvements (cost positions and differentiation)
OE: performing similar activities better than rivals (unsustainable in price, value creation if sole means of competition due to rapid diffusion of best practices especially generic strategies that can be used in multiple settings with consultant support)
diminishing returns
TQM, time-based competition, benchmarking
eliminate inefficiencies, customer satisfaction, best practice
productivity frontier (State of best practice) (nonprice buyer value VS relative cost position)
purchased inputs (easily imitated)
management techniques (easily imitated)
skills
technologies (easily imitated)
movement affects everyone without relative improvement
can lead to lowered industry leader profit margin across time even with better OE
competitive convergence due to activities becoming generic (outsourcing to same firms, imitate quality, cycle time improvements, partnerships)
industry consolidation through mergers (performance pressure but lacking strategic vision)
outlast rather than real advantage
Operational effectiveness vs strategic positioning
Japanese companies rarely have strategies
self inflicted mutually destructive hypercompetition with no winners among competitors (head-to-head) with value captured by suppliers and customers from productivity gains
zero-sum
static or declining prices
cost pressures compromising long term investment ability
Strategic positioning: performing different activities from rivals or similar activities in different ways
Fit drive both competitive advantage and sustainability
Mapping activity systems
Vanguard's activity system
Types of fit
Alternative views of strategy
Fit and sustainability
Strategy rests on unique activities
Finding new positions: The Entrepreneurial edge
The connection with generic strategies
The Origin of strategic positions
A sustainable strategic position requires trade-offs