900 pound gorilla
DESCRIPTION
How to beat more powerful competitors through strategic focus on company, customer, and competitor.TRANSCRIPT
Copyright ©1997 by Kelly Lefkowitz
ALL RIGHTS RESERVED
The Strategy TechniqueBeating the 900 Pound Gorilla
Kelly Lefkowitz, PresidentKelly Lefkowitz, President
Strat/AssistStrat/Assist12610 Mitchell AvenueSuite EightLos Angeles CA 90066310.980.6641 [email protected]
Copyright ©1997 by Kelly Lefkowitz
ALL RIGHTS RESERVED
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Play Differently
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Three Faces of Corporate Strategy
Product Leadership Operational Excellence Customer Focus (Intimacy)
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Product Leadership
Innovation New Product Introduction Product Design Brand/Reputation
SPEED!
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Product Leadership Examples
Intel Proctor & Gamble Sony Nike Ralph Lauren Amazon.Com
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Operational Excellence
Low Prices High Quality Hassle Free Service
SIMPLICITY!
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Operational Excellence Examples
Wal-Mart Federal Express Gateway 2000 Saturn Limited Southwest Airlines
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Customer Focus (Intimacy)
Best Product + Best Price = Best Value Live the Customers Problems Close Relationships Help Companies to
Recognize Customer Needs
FLEXIBILITY!
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Customer Focused Companies
Bennetton Chapperal Steel Cheetah Software Systems Ryder Logistics
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Total Focus on One Strategy?
NO! NO! NO! You Have to Maintain a Competitive
Threshold in The Other Areas Achieve Outstanding Performance in
One Area While Remaining Competitive in the Other Two.
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The Strategic Technique
Product OperatingEfficiency
CustomerIntimacy
Product OperatingEfficiency
ProductCustomerIntimacy
OperatingEfficiency
CustomerIntimacy
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When Up Against The Market Leader Survive - if a large company is committed to
providing unmatched value of a particular kind, to one of the three value disciplines, get out of the way.
Thrive - look at the natural advantages of big companies to see where your leverage points are for each of the value disciplines
Copyright ©1997 by Kelly Lefkowitz
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Survival Strategy
If a Large Company is Well Managed it Will Get What it Wants, but it Can’t Excel at All Three Values.
Focus and Innovate in a Different Type of Value– Minutemen Vs. British Army
– Walmart Vs. Sears
– CPA Vs. Big 6
– Ben & Jerry’s Vs. Baskin Robbins
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Using the Strategy Technique
To Analyze Your Customers/Segment Your Markets
To Position Yourself Against Competition To Provide Focus to Your Employees/
Co-workers
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Analyze Your Customers/ Segment Your Market A Brilliant Sales Tool Sales Force Intuition Focus On Your Target Market
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Position Against Your Competition How Do They Play The Downside of Each Strategy Go for the Soft Spot
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Focus Your Employees
Simple to Understand the Strategy Training Costs Reduced Decisions Are Easier to Make
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Your Customer’s Triangle
Primary Strategy
Secondary Strategy
Tertiary Strategy
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If a Customer Is Product Focused
Operating Efficiency Helps– Low Cost Components
– Consistent Quality
Customer Flexibility Helps– Outsource Services (Black Box Programs)
– J-I-T
Product Focused Hurts– Too Much Value Added Cost in Components
– Designs May Change Too Often
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If a Customer is Operating Efficient Product Focused Helps
– Assure Components are of High Quality
Operating Efficient Helps– Keeping Cost Low
Customer Flexibility Helps– Outsource Activities that Would Prevent
Efficiency
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If A Customer is Flexibility Focused Operating Efficiency Helps
– Consistency of Product & Service
Flexibility Helps– J-I-T– Strategic Alliance
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Your Competition’s Triangle
Primary Strategy
Secondary Strategy
Tertiary Strategy
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Your Strategy Triangle
Primary Strategy
Secondary Strategy
Tertiary Strategy
Copyright ©1997 by Kelly Lefkowitz
ALL RIGHTS RESERVED
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Beat the 900 Pound Gorilla!!!