.
Corporate Strategy
.
What is strategy?
• Is it particular action..?
• Is it why your organization exist in the society…?
• Vision?
• Strategy defines the organization’s distinctive approach to competing and the
competitive advantage on which it will be based.
VRIO
VQQaluable: whether these resources/capabilities can encourage companies to make the operation process
more efficient and effective, or can be used to exploit external opportunities or counteract threats.
Rare: whether the resources/capabilities are controlled only by a small number of companies or rarely
owned by other companies.
Imitability: whether the resources/capabilities are hard to imitate or replicate by other companies.
Organization: whether the resources/capabilities are supported and managed by the company
appropriately.
.
Live Example from Industry.
RGIA: 9/8/2018
.
Different set of activities….for value
• Short-haul
• Low cost
• Point to point service between mid size cities.
• Avoid large airport
• Does not fly great distance.
• “ Southwest Airlines serve price and convenience –sensitive travelers”
.
Origin of strategic positions
• Variety based Positioning – it is based on the choices of
products and service varieties rather than customer segments.
It makes economic sense - Vanguard
• Need based Positioning: Groups of customer with different
needs. IKEA. Closer to traditional thinking.
• Access based Positioning: Less common and less understand.
Like- Carmike Cinemas. Operates in cities and town with
population under 200,000. Based on lean cost structure.
.
• A position emerging from any of the sources can be
broad or narrow.
• A focus competitors, target the special needs of a subset
of a customers and designs its activities accordingly.
Question..????
•What is Strategy…?
Sustainable strategic
positioning……
• Choosing a unique positioning - is it enough to guarantee a
sustainable advantage ??
• A Competitors can reposition itself to match the superior
performance, Like J.C Penny repositioning itself from a Sears clone
to a more upscale, fashion –oriented, soft-goods retailer.
• Straddling: seek to match the benefit of the successful positioning
while maintaining its existing positing.
.
• Continental Airlines -- Southwest Airlines.
• How you are going to tackle this competition?
Strategic trade – offs.
• Trade off occur when activities are incompatible.
• More of one things necessities less of another.
• Trade offs create the need for choice and protect against re
positioners and straddlers.
• Exp: Neutrogena….”kind to the skin”…no to deodorants and skin
softner
.
.
• What is Strategy?
• IS IT MAKING TRADE OFF IN
COMPETING ?
Strategic fit..
• Strategic Positioning determine not only which activities
an organization will perform and how it will configure
individual activities relate to one another.
• Activities complement each other and create real economic
value.
• Fit locks out imitators by creating a chain that is as strong
as its strongest link.
Can you say what is your strategy is ?
• Can you summarize your company’s strategy
in 35 words or less? If so,
• would your colleagues put it the same way?
• companies that don’t have a simple and clear statement
of strategy are likely to fall into the sorry category
.
Elements of a Strategy Statement
• Three critical components of a good strategy statement:-
• Objective,
• Scope (Customer / offering, geographic location, vertical integration)-
WHICH THEY SHOULD NOT DO.
• Advantage - sustainable competitive advantage.
• These elements are a simple yet sufficient list for any strategy (whether
business or military) that addresses competitive interaction over
unbounded terrain
A Hierarchy of Company
Statements
Wal-Mart’s Value Proposition
Edward Jones’s Activity-System
Map
The Strategic Sweet Spot
Developing a Strategy Statement
.
• Strategy defines the organization’s distinctive approach
to competing and the Sustainable competitive
advantage on which it will be based.
.
• Thank you
