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Business Strategy Tactics to Beat Your Competition |
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By: Vadim Kotelnikov, Founder, Ten3 Business e-Coach – Inspiration and Innovation Unlimited, 1000ventures.com, 1000advices.com
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"Even if you do see the future correctly, its timing is hard to predict and its implications are uncertain." – John Kay |
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The Methods of Business Strategy Require4:
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The questions are twofold:
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A full statement of a selected business strategy is a business plan defining:
Modern Theory of Business Strategy Strategizing is much more than just visioning, forecasting and planning. In the new rapidly changing economy, all substantive issues of strategy have been redefined as issues of implementation. Today, strategizing is concerned with the match between the internal capabilities of the company and its external environment. "The modern subject of business strategy is a set of analytic techniques for understanding better, and so influencing, a company's position in its actual and potential marketplace".4 As strategy today is a subject of application, rather than a discipline, the obvious underpinning disciplines for strategy are economics and organizational sociology. You should employ them to define a structure in which the process of strategy formulation and its implementation are bound together. Working On Your Business
To be successful today, your company must become
competitor-oriented. You must pursue the right
competitive strategy – avoid
strengths of your competitors and look for weak points in their positions
and then launch marketing attacks against those weak points...
More
Building Your
Sustainable
Competitive Advantage
Sustainable competitive advantage is the prolonged benefit of
implementing some unique value-creating strategy based on unique
combination of internal organizational
resources
and
capabilities
that cannot be replicated by competitors...
Business Strategy Stretching To Jack Welch, the legendary former CEO of GE, business strategy stretching is doing the best possible – and then reaching beyond. What Welch calls "stretch" simply means figuring our performance targets "that are achievable, reasonable, and within GE's capabilities. And then raising sights higher – much higher – towards goals that seem almost beyond reach, goals requiring superhuman effort to achieve."8 Often business leaders exceed goals even as they fall short of the stretch. Don't punish, reward them. What's critical is setting the performance bar high enough; otherwise, it's impossible to find out what people can do. New Paradigm: Resource-Based Theory The currently dominant view of business strategy – resource-based theory – is based on the concept of economic rent and the view of the company as a collection of capabilities. This view of strategy has a coherence and integrative role that places it well ahead of other mechanisms of strategic decision making.4
The resource based view of strategy emphasizes economic rent
creation through
distinctive
capabilities. Economic rent is what companies earn over and above the cost
of the capital employed in their business. It is the measure of the
competitive advantage, and competitive advantage is the only means by
which companies in competitive markets can earn economic rent. The objective
of a company is to increase its economic rent, rather than its profit as
such. "A company which increases its profits but not its economic rent
– as
through investments or acquisitions which yield less than the cost of
capital – destroys value."4 The perspective of economic rent
forces the question 'why can't competitors do that?' into discussion.
The Four Skills of an Effective Competitor
Excerpts from the "Art of
War", Sun Tzu, app. 500 BC
Vision:
the ability to foresee the future...
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The Seven Dimensions of Strategic
Innovation
The Strategic Innovation framework weaves together seven dimensions to
produce a range of outcomes that drive growth.
A company's
Organizational Readiness may drive or
inhibit its ability to act upon and
implement new
ideas and
strategies,
and to successfully manage operational, political,
cultural and financial demands that will follow...
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Case in Point
7-Part Competitive
Strategy of Microsoft
Although Bill Gates, Founder of
Microsoft, built his empire on technological products, his business
mastery is even more important than his technical skills, and his
competitive urge is a huge driving force.
The early success of Microsoft was founded on
the company's 7-part competitive strategy...
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Business Strategy in the New Knowledge Economy... Dynamic Enterprise Strategy... Strategy Innovation: Evolution of a Successful Strategy... Business Intelligence... Technology-oriented Business Strategy Formulation... Connecting Power... Strategic Achievement... Competitive Strategies.., Competitive War Games... Flying Beneath the Radar... Innovation Strategies... Competitive Disruption... Cleaner Production Strategy... Make It Fun... Four Categories of Business Tactics... Strategic Project Management (SPM)... Case in Point GE... Case in Point Silicon Valley Firms... Case in Point Amazon.com... Case in Point Microsoft... Case in Point Charles Schwab...
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References:
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