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Nikita Devi
Divya Iyer
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Reality was recognizable
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Then things started to look funny
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Then it was harder to recognize and disjointed
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You could still tell what was going on
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7/28 ut it was getting harderand harder
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8/28Finally it became impossible
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9/28To see what was going on
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Author tells that Business strategy is likePicassos paintings
In the beginning, things were prettystraightforward. it was very clear what washappening in the picture. But over time, itbecame more difficult to understand the
painting, the message, the patternuntil in theend you were left guessing what Picasso waspainting.
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Our job is to figure out the PATTERN
that lies hiddenunderneath the apparent
chaos on the surface.
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DoctorsThey connect symptoms with the
causes, and use that insight to developpowerful, on target analyses andprescriptions to help their patients.
BusinessEvery industry is reshaped bypatterns of strategic change that candrastically shift profit and power across thelandscape. Sometimes the patterns move
slowly sometimes they move rapidly butchange is always occurring.
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PROFIT
PATTERNS
30 Ways to Anticipate
And Profit from Strategic Forces
Reshaping Your Business
ADRIAN J. SLYWOTZKY AND DAVID J. MORRISON
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The idea of profit pattern thinking is animportant addition to strategy as it helps to makesense of a lot of the traditional work done inmaking strategies like PEST Analysis, FiveForces Model and Value Chain.
It is more important to do what is strategically
right than what is immediately profitable.
- Philip Kotler
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This book presents 30 patterns that arechanging the landscape of every business.Understanding them can help you make movesand countermoves that lead to sustained
profit growth.
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They are :-
Mega Patterns
Value Chain Patterns
Customer Patterns Channel Patterns
Product Patterns
Knowledge PatternsOrganizational Patterns
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MEGA PATTERNS
These models do not address anyparticular dimension of the activity(customer, channels of distribution and
value chain), but have an overall andtransversal influence.
They owe their name Mega to theirrange and impact of the different
economic sectors and duration.
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VALUE CHAIN PATTERNS
It consist of the evolution of relations acompany has with the different levelsof its value-chain: customers,distribution channels, products and raw
materials.
Should certain tasks be sub-contracted
out or brought back in to the company? Change the supplier or strengthen links
with him?
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CUSTOMER PATTERNS
It concern the RISKS brought about bychanges in customer attitudes, in termsof the loss or creation of value.
Are all customers profitable?
WHAT are the limits of segmentation?WHO is the ideal customer?
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CHANNEL PATTERNS
These patterns how distribution tendenciesinfluence value creation.
Distribution channels multiply in line with
consumer segmentation. They can also reduce in number, as in the
case of French supermarkets, where baker,dairyman, butcher and fishmonger are all
found in the same shop. The intermediaries inthese channels can similarly appear ordisappear.
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PRODUCT PATTERNS
These patterns show how value hasmigrated, over the past 15 years, fromthe product to other elements, such as
the brand, integrated solutions andblockbusters.
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KNOWLEDGE PATTERNS
As the economy passes from thefabrication of physical goods to theapplication of useful ideas, these
patterns will multiply in the years tocome.
Knowledge gained through the activitypermits the redefinition of this activity,
using information on consumers, productsand internal organisation.
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ORGANIZATIONAL PATTERNS
These illustrate the new business paradigm, value-creation, and the future paradigm, the balance ofattention given to products, customers and internaland external organisation of the company.
A companys share in value-creation will depend ontwo main imperatives:
the system must be perfectly tuned to thecompanys strategic plan, and
sufficient energy must be expended to executethe plan brilliantly.
The common factor in these models is the close linkbetween the talent of the company and itscustomers.
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Switchboard Profit Model
Buyers Sellers
Multiple sellerscommunicating with
multiple buyers
a high-value
intermediary as thecommunication pathways
(the switchboard)
The switchboard reduces
the costs to both buyersand sellers
Example:
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F