the strategy accelerator - new business models based on competitive advantage

8/14/2019 The Strategy accelerator - new business models based on competitive advantage

1/16

Mini publication

The Stra Acceler Business models for su

competitive advantage

egy tor tainable


2/16

HowMainup wprodsurprcreatdetermaxi

Yoca

Yourvaluefunnand tbut ayou ssupplor coscarcappli

2

Onav

t

o achieve growth and to make a profit?ly by being different than others. By comingith new business models: completely newcts, added services, different ways to pay,

ising experiences. In that way you cane a sort of monopoly, in which youmine the price at which your profit is

ised.

can do this by finding new utilise with your organisat

company does not stand alone but is part of thenetwork: a network that has branches andls, that extends itself even to the consumerhat does not only contain money and goods,lso information. Where is your expertise? Cankip steps, make combinations with otheriers or incorporate their offerings? What means

petences do you have that are valuable,, difficult to imitate for others and easilyable for you?

y by developing new businrage in your branch


3/16


4/16

Int cla

Aparinforwell.sharare d

the cfor aperfo

4

rnet and the globalisation ssical strategies do not app

from changes in the availability ofation, the financial world has changed as

Not the board of directors, but theholders determine what kind of investmentsone. When headquarters has no added value

mpany is split up. There is always moneygood idea and not any more for a badlyrming business unit.

The three strategies ofMichael Porter (1980)

Cost leadership:

having the lowest costs

Product differentiation:having a better product

Focus strategy:targeting on a niche


5/16

of financial markets have c y any more

Sustainable c only be achie

product or by your custome

The three directions ofTreacy & Wiersema (1995)

What happeninternet

Operational excellence:having the lowest total costs,including costs of your client

Cost advantagcopied or leve

Scale can b

Product leadership:continuously introducing new

products

The enormousproducts make

stand

Customer intimacy:having a complete offering for

specific customer groups

There are manwith a broad

Customers ca

anged business:

mpetitive advantage caned by having a unique

really being relevant for 5

ed in thege? Current validity

e is easilyled down.

boughtNo sustainable strategy

iversity ofit hard to

ut

(Continuously) havingunique products

suppliersoffering.n choose

Market relevancy:being seen as relevant by

your customer group


6/16

Depending on your sustaadvantage you can choo

As indicated before there are two generic fosustainable competitive advantage in the cuhaving a unique product and having market

A company can have one of the two forms oThe two forms have different dimensions anaccelerator. With this model you can decideyour competitive advantage: ally , combinecombinecombinecombine,

Just as with a car you dont start a companybuild on your sources of profitability. The str

one of the two directions to differentiate yothrough market relevancy. Both options donmeans you can only focus on one.

6

i nable competitivee your strategy

ms of differentiation that bringrent transparent world: (continuously)relevancy.

f competitive advantage, both, or neither.d can be set out in a matrix, the Strategyn your optimal strategy, depending on

excelexcelexcelexcel or consolidateconsolidateconsolidateconsolidate.

in the fourth gear: you have to carefullytegy accelerator forces a clear choice for

rself: either with a unique product ort exclude each other, but with limited


7/16

AllyAllyAllyAlly with others as thequickest way to build upthe right competencesor product portfolio

CombineCombineCombineCombine several matchiproducts under your braand become even morerelevant for your market

NoNoNoNo

HighHighHighHigh

LowLowLowLow

High market relevancyand no unique product:

Low market relevancyand no unique product:

Page 8-9

Page 10-11

ExcelExcelExcelExcel in what you do to

make sure that you cancontinue to develop uniqueproducts and services

gd

ConsolidateConsolidateConsolidateConsolidate yourposition by constantrenewal and bykeeping close watch onyour competitors

YesYesYesYes

High market relevancyand a unique product:

Low market relevancyand a unique product:

7Page 12-13

Page14


8/16

Al rel

pr

8

y to expand your market evancy or to develop new

ducts faster

When starting an alliance threeaspects are important: the 3 Bs ofpartnerships

Business modelBusiness modelBusiness modelBusiness model

In what way will more profits bemade jointly than by the partnersseparately?

How will the profits be divided?


9/16

The majority of the companies starts in the firlow market relevancy and no unique product.often limited and is mainly determined by thesupply and demand in the market. Instead ofhiring these competences or taking over a cocompetences you can better start an alliance.extra market relevancy or develop a new proinvestment and less risks.

The business model, the

basis and the balance b partners are three impor

Contractual BasisContractual BasisContractual BasisContractual Basis

What legal form will be mostappropriate?

In which way are agreementsdescribed?

What happens in case of aconflict or when the allianceterminates in another way?

BalanceBalanceBalanceBalance

Do bothinfluenc

How toemployas well?

How tointerests

st gear: they haveTheir profitability isbalance between

investing yourself,pany with these

In this way you gainuct with a limited

contractual

tweentant aspects

between partnersbetween partnersbetween partnersbetween partners

partners have equal?

nsure that thees support the alliance

esolve conflicts of?

9


10/16

Coove

m

Dico

CustoyourThat wby thethis isyouralways

Marketproducoverall

most rmatchyour tu

10

bine products and servicesrlap between the customer

Fulfillment ofyour brand promise

Portfolioanagement

stribution andmmunications

ers pay attention to your product whenessage is relevant to them at that moment.ill happen if their actual need is answeredpromise that your brand makes, and howulfilled in products, services, distribution orarketing communications. Market relevancystarts with a clear brand promise.

relevancy is created by combining the rights and services. Your brand stands for thepromise: the cheapest, the coolest or the

liable products. By combining moreing products and services in your offering,rnover and profit grows.


11/16

to create market relevancy needs and your brand pro

Market relevancy makes

customer buys from you,from your competitor

Actualcustomer

needs

MarketMarketMarketMarketrelevancyrelevancyrelevancyrelevancy

Every person has a number of gfriendship, relaxation, efficiencyDepending on the context or sitgeneric needs are translated towant to have dinner with your fchoose another restaurant than

: theise

that a

and not

Genericneeds

Context /Situation

eneric needs: security,and success.ation you are in, these

actual needs. When youriends you will probablywith your parents.

11


12/16

Oncecocl

Thi ori

pr m

Withihas acomhavicamecarnot g

12

ly if you excel in atain specialism you cantinuously develop

arly unique products

s requires customer ntation, innovation

cesses and product nagement

n a business model a unique product alwaysclear, not easy to imitate, advantageared to competing products. It is not aboutg a coffee machine in a different colour, ara with a few more mega pixels or a familyith a bit different design. Being different isood enough, its about being extraordinary.


13/16

Developing a unique product or service requirinvestments in building the right competencesdevelopment and the right way of market intrbe additional costs for building a new (producbuying licences or the registration of patents.

Research learns us that four aspects are essencome up with new products:

A strong management focus on innovatioor CEO is not convinced, nothing will hap

Openness of the business model: talk witcontact with universities, find partners;

Skills and creativity: train people and che A managed development process: regula

of your innovations and dont be afraid t

ideas.

FocusFocusFocusFocusonononon

innovationinnovationinnovationinnovation

Skills andSkills andSkills andSkills andcreativitycreativitycreativitycreativity

Openness of theOpenness of theOpenness of theOpenness of thebusiness modelbusiness modelbusiness modelbusiness model

ManagedManagedManagedManageddevelopment procedevelopment procedevelopment procedevelopment proce

s continuous, in idea selection,oduction. There willion) organisation, for

ial to continuously

n. When the directoren;clients, make

ish their ideas;ly review the statusstop with inferior

13

New productNew productNew productNew productor serviceor serviceor serviceor servicessss


14/16

Cow

rel uncloco

YoumarkservistroncomcomwatcnecetheApplto gadeveservi

14

solidate by continuously rking on your market

vancy and on new que products . Keep a

se watch on your petitors

ave high relevancy for youret and unique products ores. What to do to maintain this

g status? The strategy foranies in this gear is both toine and excel. Keep a close

on your competitors, whensary incorporate them or chaseaway. And just as TomTom or, find strong alliance partners

in market relevancy or tolop new unique products ores.


15/16

With alliances you canmake quicker progressthan with investingyourself or taking over a company

Move this way with

marketing alliances

A marketing alliance focuses on the marketinservices of both partners. In a development al

new products or services with the knowledgetypes of alliances can help to create a betterinvestments and risks.

Move this way withdevelopment alliances

or sales of combined products orliance the partners aim for developing

and facilities of both organisations. Bothompetitive position with less

15


16/16

Alfred Griffioen has built his vision on competdevelopment manager and strategy consultain matching and advising companies in the fiBefore this he wrote The Senseo effect, a pr

The book De Strategieversnelling is a publicahas been written by Frank Heemskerk, minist

For more information visit www.str

move thisdevelopme

The Strategy accelerator

UniqueNoNoNoNo

HighHighHighHigh

LowLowLowLow

M a r k e

t r e

l e v a n c y

itive advantage as marketeer, businesst. He is partner at Alliance experts, specialisedld of alliances and strategic cooperation.ctical guide for starting a partnership.

tion of FT Prentice Hall in Dutch. The prefacer of Foreign Trade of the Netherlands.

tegy-accelerator.com

move thisway withmarketingalliances

ay witht alliances

ompleted

product? YesYesYesYes

the strategy accelerator - new business models based on competitive advantage

Documents