StrategyandBusinessModel

1、strategy, business model & business planbusiness plan outlineexecutive summary company descriptionincluding product/service & technology/core knowledgeindustry analysis & trendstarget marketcompetition strategy/business modelmarketing and sales plan production/operations plantechnology p

2、lanmanagement & organization social responsibilitydevelopment & milestonesfinancialsincluding capital requirements & financial statements appendixstrategy funnelcustomer &benefitscompetitivedynamicscompetitivespacesegment,sizechannelsstrategic positioningvaluepropositionindustrystruc

3、tureenvironmental trendsindustrymarketperceptualspacegoal: articulate and execute long-term, defensible offer of unique value to customerswhat is strategy? plan process position pattern perspective procedure play ploy strategic management strategic position strategic navigation strategic tacticsstra

4、tegic managementenvironmental scanningevaluation &controlstrategyimplementationstrategyformulationmissionvision disciplined, iterative process of driving towards vision, by finding or making and maintaining a defensible space or trajectory in a given business environment.strategy checklist value

5、 proposition vision position or directionstructure or resource base revenue & business model timeline or guidelines fit value proposition specific, concrete offer of benefitsprice, quality, convenience, choice, cost-savings, reliability, etc to precisely defined customerswho recognize that the o

6、ffer solves a problem for theeg: our clients grow their business, large or small, typically by a minimum of 30-50% over the previous year. they accomplish this without working 80 hour weeks and sacrificing their personal lives. vision stable coremission: central audience + core product/service ideol

7、ogy: values, principles, culture focused ambitionconcrete picture of successful impactserious, scary stretch goalsdisciplined experimentationvision exercise stable coremission: ideology: focused ambitionwhat success will look like in the marketplace:one audacious goal:position or navigation? positio

8、n strategiesunique, valuable, defensible position in a market or industrysupported by a tightly integrated value chain / activity systemgood for relatively stable industries/markets navigation strategiesvision-driven nurturing and leveraging of core resourcessupported by tight culture and explicit l

9、earninggood for dynamic industries/marketsexternal opportunities& threatsnicheinternal strengths & weaknessesstrategic positions require niches a niche includes the market the firm is uniquely qualified to servestrategic situation external factorsinternal factorsresources (know-how, people,

10、money, etc) vision, values&culturesocial,political,regulatory, technological& communityindustryattractive-ness,dynamics, &competitionunmet customer needs & desirescompetitive position (through customers eyes & in industry) match sw to ot strengths(s)internalfactorsexternalfactors

11、 opportunities (o)so strategies-wo strategies- threats(t)st strategies-wt strategies-use strengths toavoid threatsmin. weaknesses to avoid threatsuse strengths to take advantage of opportunitiesoffset weaknessesto take advantage of opportunities weaknesses (w)swot exerciseexternal factorsinternal fa

12、ctorsresourcescompetitive positioncultureenvironmentindustrycustomer map sw to ot.two levels of strategy corporategrowthretrenchmentstability businesscost (price) leadershipdifferentiationfocusgrowth strategies concentrationvertical and horizontal diversificationconcentricconglomerategrowth through

13、concentration concentrate resources on a single businessconcentrate vertically, i.e., backward or forward (supply or distribution)concentrate horizontally by growing geographically or by expanding product or service offering means to accomplish growth mergers acquisitions internal growth strategic a

14、lliances international diversification used if firms current product lines do not have much growth potential benefitseconomies of scopeincrease market powershare infrastructuremaintain growthconcentric (related) diversification outperform unrelated diversification best whenlow industry attractivenes

15、sstrong business strengthsstrong competitive position allows use of distinctive competence seek synergyconglomerate (unrelated) diversification best whenfirm operates in unattractive industryfirm lacks abilities or skills easily transferable to related industry focus is financial & not core comp

16、etence or synergybalance cash flowsreduce riskstability strategies pause and proceed with caution no change profitretrenchment strategies turnaround captive company sell out or divestmentspin-offmanagement buyout (mbo) bankruptcy or liquidationbusiness level strategies cost (price) leadershipefficie

17、ncy and scale differentiationquality, design, support/service, image - that make a product or service special focusexplicit tie to a broad or narrowmarket segmentexamples cost (price) leadershipdell computers (logistics, volume) motel 6 (location, services, salespeople). southwest airlines (corporat

18、e culture, service) differentiationquality (mercedes) design (apple) service (nordstrom). image (nike). special niches (zitners candied apples; independent films)examples focusbroad (wal-mart - rural)narrow (nsp - activists, nri - network administrators)segmented (computer security spooks and commer

19、ce, financial services rich, poor and in-between.)value discipline positioningproduct leadership(differentiation)customer intimacy(focus)operational excellence(cost leadership)value disciplinesproduct leadership - compete on speedgood design, great executioneducate & lead the market ad hoc, risk

20、 oriented culture organization designed for innovationoperational excellence - compete on scalelow price, limited options, ultimate conveniencemanaged customer expectationsmeasurement cultureprocesses & transactions continually redesignedfor efficiencyvalue disciplinescustomer intimacy - compete

21、 on scopeofferings tailored to customers & segmentsdeep insight into customer needsproblem solving service culturefull range of services, so customers staybreakthrough thinking, unique solutionsposition strategy exerciseproduct leadership(differentiation)customer intimacy(focus)operational excel

22、lence(cost leadership)choose a position strategy and explain how you will achieve it.strategic positions require fit fit refers to the integration of every part of firms internal structures to better serve a niche. well-positioned firms craft themselves to serve niches better than others.fit: entrep

23、reneurial advantage possibility of crafting a perfect fit between specific opportunities and internal capabilities firms that fit opportunities extremely well have an advantage over bigger, stronger opponents examples: dollar express vs dollar treeyouthbuild vs school districtgiovannis room vs borde

24、rsvalue chain a strong value chain is a cross-linked net of activities that affects the cost or performance of the whole.supporting a strategy by optimizing both individual functions and the links between them to support a strategy yields a powerful, durable, hard-to-duplicate advantage.margintechno

25、logyinboundlogisticsoperationsoutboundlogisticsmarketing/salesafter salesserviceinfrastructureprocurementhuman resourcesactivity system a less linear way of thinking about the internal fit that supports strategy. map crucially interrelated features and functions that define a firms unique skills and

26、 strategy. support competitive advantage with reinforcing patterns or systems.ikeas activity systemlimitedcustomerservicemodulardesignslow mfgcostself-serviceselectionself-transportlimitedsales staffcustomer loyaltyself -assemblysuburban locationmost items in stockdesign focused on low costexplanato

27、ry labelingeasy transportflat packing kitswide variety long-term suppliersyear-round stockingon-site inventoryimpulse buyinghigh-traffic store layouteasy to make experience curve for positional strategies, experience is the ultimate source of advantage. experience fuels the tacit knowledge that driv

28、es productivity improvements, innovations, elaborations of strategy, etc successful firms are especially good at creating the social and institutional structures that support the shared development of such tacit knowledgefit exercise draw the value chain for your firm note reinforcing (and jarring)

29、pieces try to create more reinforcementsor jot down functions and features look for patterns and connections try to crystallize patterns a business model describes what a firm will do, and how, to build and capture wealth for stakeholders effective business models operationalize good strategies - tu

30、rning position and fit into wealthbusiness modelfour aspects of business models revenue sources cost drivers investment size critical success factorsrevenue sources subscription/membershipfixed amount at regular intervals prior to receiving product/service volume/unit-basedfixed price in exchange fo

31、r product/service advertising-basedexempt from fee or pays fraction of the value licensing & syndicationone time fee transaction feefixed fee or percentage of total value of transactioncost drivers fixed: item costs do not vary with volume semi-variable: variable & fixed costs variable: item

32、 costs vary with volume non-recurring: item of cost occurs infrequentlyinvestment size maximizing finance needs positive cash flow cash breakevencritical success factors an operational function or competency that a company must possess in order to be sustainable & profitable perform sensitive an

33、alysis build wealth: by efficiently (profitably) transforming inputs into something that customers value enough to pay for again and again and againby supporting growth capture wealth: by siphoning off some of the accumulated wealth for stakeholdersand by developing recognizable value strategic posi

34、tions, know-how, customers, free cash flow, lifestyles, social impact that can be capturedeffective business models build & capture wealth about who mattersowners, investors, family, workers, community about what kind of wealth mattersfinancial capital, social capital, intellectual capital.ie.,

35、cash, good life, rich family life, entrepreneurial impact, social impact about the strategy that will deliver the wealth that matters to the stakeholders that matter about the structure that supports strategyeffective business models require hard choices1.describe the landscape:porterenvironment, industry, and relevant trends. 2. paint in competitors:competitor table. perceptual maps.what do you need to play? how do competitors compete? what opportunities exist? 3. identify strengths &am