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STRATEGY

COMPETITIVE BLIND SPOTS

HOW TO REDUCE BLIND SPOTS?


Asking right kind of questions: Who do we serve:

Who are our customers? What market segments do we serve/in which geographies? Are there type of customers that have been ignored by companies in our industry?

What do we provide: What are the products/sr. we are selling?

Could we deploy the customer benefits we provide in new ways? Have we looked critically at where we draw the boundary b/w what we do & dont do as a co.?

How do we provide it:

What distribution channel do we use? How do our suppliers & partners help us deliver value? Could we make process of fulfillment substantially easier? What partners & suppliers might we work to enhance our ability to deliver value to the customer?

How do we differentiate & sustain an advantage: How are we different from competitors? Are there any dimensions of differentiation that we or our competitors have not yet explored?

COMPETITIVE ADVANTAGE

Strategy formulation

Strategy implementation

WHAT IS A STRATEGY OF MARUTI INDIA?


Defender Prospector Analyzers Reactors

WHAT IS A STRATEGY OF SINGAPORE AIRLINES & SOUTHWEST AIRLINES?


Cost Leadership Differentiation Focus

STAR MODEL BY GALBRAITH


Structure (power & authority, information flow, organizational roles)

Strategy (Vision, direction, competitive advantage)

People/Human resource (Hiring, work feedback, learning, skills & mind-set) Process (information, & decision processes)

Reward (Motivation: compensation & reward)

The

five factors must be internally consistent to enable effective behaviour. Fortunately, a design sequence exists whose starting point is the strategy definition. Strategy drives organisational structure. Processes are based on the organisation's Structure. Structure and Processes define the implementation of reward systems and people policies.

THE SOLUTION ORGANIZATION

To meet the challenges of global competition in the twenty-first century, companies in all types of industries must start defining themselves by the problems they solve rather than the products they sell. Such as IBM

The Solution-Centric Organization will enable you to: Dramatically improve your value position with customers and differentiate your product offerings Boost your marketing teams potential to directly increase sales and revenue Enhance your sales teams ability to diagnose customer problems and provide solutions Create sustainable performance improvements and pave the way for further improvements

PRODUCT VS CUSTOMER-CENTRIC ORGANIZATION


Product-centric Strategy: best product fro customers; new products Structure: product teams Processes: new product dev. Rewards: no. of new products People: power to people who develop products Culture: experimentation; open to new ideas

Customer centric Strategy: best solution for customers; customize Structure: create teams around customers Processes: customer relp mgt. Rewards: customer satisfaction; customer retention People: power to people who have in-depth knowledge of customers Culture: relationship management culture; search for more customer need to satisfy