rethinking competition by venus de hoyos roy ramirez chris rediker kleber silva st. edward’s...
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Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
St. Edward’s University - MBA ProgramManaging the OrganizationMGMT 6305 Dr. Rex DramanOctober 23, 2000
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
ContentsContents
Creating Tomorrow’s Advantages Michael Porter
Strategies for Growth CK Prahalad
Reinventing the Basis for Competition Gary Hamel
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Creating Tomorrow’s AdvantagesCreating Tomorrow’s Advantages
Thinking in new ways: Creating advantages rather than just
eliminating disadvantages. Using specialization and innovation as the
basis for a competitive strategy. Being different at what you do, not only
being better.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Creating Tomorrow’s AdvantagesCreating Tomorrow’s Advantages
Learn strategy on a continuous basis: First because we don’t know all there is to
know. Second because as we all learn we create
the need for further knowledge. Pitfalls in strategic thinking:
The need for the largest market share. All companies should reduce their cycle
times.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Creating Tomorrow’s AdvantagesCreating Tomorrow’s Advantages
Principles that define a good strategy: Shape the nature of the competition. Risk - Make choices.
Be different in ways that involve trade-offs with other ways of being different.
Trade-offs should differentiate a company thereby reducing the risk of imitation.
Adapting to change: Continuity of strategy and rapid change are not
inconsistent. Adapt operations to market changes while retaining core
strategy goals.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Creating Tomorrow’s AdvantagesCreating Tomorrow’s Advantages
Importance of innovation and the role of technology: Innovation is about finding new ways of
combining things. Apply the technology the company has
mastered to improve the way it delivers value to its customers.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Creating Tomorrow’s AdvantagesCreating Tomorrow’s Advantages Whom should the company involve in the process
of developing and implementing a strategy? The essence of strategy is cross-functional, cross-
activity integration. Strategy should be developed in a multifunctional team.
Rethinking globalization: The paradigm of globalization is that it is putting a
greater premium on specialization, on doing particular things in particular locations.
We are entering a new phase where globalization is putting an emphasis on the home-base.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Creating Tomorrow’s AdvantagesCreating Tomorrow’s Advantages
What should we do right now to plot a successful course into the twenty-first century? Create an environment where people don’t resist
change but really expect it. Cannibalize our own products instead of waiting
for a competitor to do it. Render our processes obsolete instead of letting
someone else do it.
Article’s end
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Strategies for GrowthStrategies for Growth
Continuity of the corporation: Focusing on the botton line is not enough. Envisioning the future is what is important. Having the ability to “influence the
evolution of industries.” Having the right resources are a key
ingredient in the company’s growth strategy.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Strategies for GrowthStrategies for Growth
Strategic Architecture: Provides a blueprint to turn what is envisioned into
reality. Links between the present and the future. Big picture:
New competencies New customer groups
Opportunity share: Financial services Genetically engineered drugs
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Strategies for GrowthStrategies for Growth
Questions to be answered: What share of future opportunities can we
capture with our current portfolio of core competencies?
Which new competencies will we have to build in order to maximize our share of those future opportunities?
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Strategies for GrowthStrategies for Growth
Bottom line – successful companies attributes: Manage to stretch and enlarge their resource
base. View the future through a process of synthesis. Have a strategic intent to have an aspiration that is
widely shared Have a goal, which is clear, and an obsession with
winning. Articles’s end
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Reinventing the Basis for CompetitionReinventing the Basis for Competition
The author states that “Benchmarking” is the old basis for competition.
“Path-breaking” is the new basis that will lead to new wealth.
The company’s focus should not be in restructuring and reengineering.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Reinventing the Basis for CompetitionReinventing the Basis for Competition
Reinventing the basis of competition means becoming different as a company.
Reinventing the existing competitive space.
Creating a fundamentally new space.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Reinventing the Basis for CompetitionReinventing the Basis for CompetitionRethinking competition:
Past: Before there was clarity of industry. Competition was between players in a well-
structured industry. Present:
Competition is fluid. Competition should influence the shape of
emerging opportunity areas.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Reinventing the Basis for CompetitionReinventing the Basis for Competition
Understanding the future: The goal is to try to imagine a future that
one can create. There is no proprietary data about the
future. Must learn from outside the industry.
It is better to study an industry that has already been transformed.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Reinventing the Basis for CompetitionReinventing the Basis for Competition
Innovation in an organization: It is not up to the leader alone, it is a mix of
creative people.
Balanced market approach and management style (conservative vs risking-taking).
Maximizing the ratio of learning over investment.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Reinventing the Basis for CompetitionReinventing the Basis for Competition Creating the incentive:
Create a deep sense of restlessness with the status quo.
Think in terms of competition as a process of shaping the evolution of space, rather than competing within existing space.
Find and encourage people interested in change as a solution.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Reinventing the Basis for CompetitionReinventing the Basis for Competition
Global competition: It is not only foreign competition but untraditional
competition. It is not product versus product but business
model versus business model. Imagination is central to future success of creating
a better business model. Replace a company's hierarchy of experience with
a hierarchy of imagination. Article’s end
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Integration Between ArticlesIntegration Between Articles
Companies must transform strategy, competitive advantage and competition from a process of defining past performance as the basis for competition to redefining industry opportunity.
Companies’ competitive advantages depend on embracing change to identify new products, customers, markets and industries before the market reshapes competition.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
Integration Between ArticlesIntegration Between Articles
Key Concepts of Rethinking Competition Envisioning the future is what is important.
Strategy Reshaping competitive space.
Growth Defining new products and markets.
Competition Anticipating industry evolution.
If well implemented these tools can lead a company to a “visionary” future.
Rethinking CompetitionRethinking Competition
ByVenus De Hoyos Roy RamirezChris Rediker Kleber Silva
We invite you to peruse our presentation and we will be happy
to answer your questions.