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STRATEGY

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COMPETITIVE BLIND SPOTS

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HOW TO REDUCE BLIND SPOTS?

Asking right kind of questions:

Who do we serve:

Who are our customers? What marketsegments do we serve/in which geographies?

Are there type of customers that have beenignored by companies in our industry?

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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.?

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How do we provide it:

What distribution channel do we use?

How do our suppliers & partners help usdeliver value?

Could we make process of fulfillment

substantially easier?What partners & suppliers might we work to

enhance our ability to deliver value to thecustomer?

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How do we differentiate & sustain anadvantage:

How are we different from competitors?

Are there any dimensions of differentiationthat we or our competitors have not yetexplored?

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COMPETITIVE ADVANTAGE

Strategyformulation

Strategyimplementation

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WHAT IS A STRATEGY OF MARUTI INDIA?

Defender

Prospector Analyzers

Reactors

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WHAT IS A STRATEGY OF SINGAPORE

AIRLINES & SOUTHWEST AIRLINES?

Cost Leadership

Differentiation Focus

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STAR MODEL BY GALBRAITH

Strategy(Vision, direction,competitive advantage)

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

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

Reward

(Motivation:compensation &reward)

Process (information, &

decision processes)

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The five factors must be internally consistent toenable effective behaviour. Fortunately, a designsequence exists whose starting point is the

strategy definition. Strategy drives organisationalstructure. Processes are based on theorganisation's Structure. Structure and Processesdefine the implementation of reward systems and

people policies.

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THE SOLUTION ORGANIZATION To meet the challenges of global competition in the twenty-first

century, companies in all types of industries must start definingthemselves by the problems they solve rather than theproducts they sell. Such as IBM

The Solution-Centric Organizationwill enable you to: Dramatically improve your value position with customers and

differentiate your product offerings

Boost your marketing teams potential to directly increase salesand revenue

Enhance your sales teams ability to diagnose customer problemsand provide solutions

Create sustainable performance improvements and pave the wayfor further improvements

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PRODUCT VS CUSTOMER-CENTRIC

ORGANIZATION

Product-centric

Strategy: best product frocustomers; new products

Structure: product teams

Processes: new product dev.

Rewards: no. of new products

People: power to people whodevelop products

Culture: experimentation; open tonew ideas

Customer centric

Strategy: best solution forcustomers; customize

Structure: create teams aroundcustomers

Processes: customer relp mgt.

Rewards: customer satisfaction;customer retention

People: power to people who havein-depth knowledge of customers

Culture: relationship managementculture; search for more customerneed to satisfy