essence of business strategy
TRANSCRIPT
THE ESSENCE OF BUSINESS STRATEGY
The Core Question in Strategy
© Dafir KramerConsultant and Lecturer in Strategy and Change
www.dksc.nl
The Core Question in Strategy
Organization
It all boils down to…How can an organization stay in business?
What business are you in?
Every organization will only remainif it has a fit with its environment
The Core Question in Strategy
FITOrganization Environment
What business are you in?
No fit = No sustainability‘elimination of the unfit’
The Core Question in StrategyWhat business are you in?
Commercial Money
Funding
Legitimation
Non profit
Public
Environment
The Core Question in Strategy
FITSupply Demand
What business are you in?
Connecting to environmental demandwith a proper supply
The Core Question in Strategy
FITProduct Market
What business are you in?
Choosing to which marketYou will offer a product
The Core Question in Strategy
Organization EnvironmentSupply DemandProduct MarketPRODUCT FIT MARKET
PMCPMC
What business are you in?
So the core question is…Which Product-Market-Combination?
The Core Question in Strategy
Organization Environment
CAPABILITIES FIT VALUE
BUSINESSBUSINESS
What business are you in?
And Product-Market-Combinationis synonymous to Business
PRODUCT FIT MARKET
Value Proposition
The Core Question in StrategyWhat business are you in?
So the essence of strategyis knowing your business
Do you know…Do you know…
WHAT BUSINESS YOU ARE IN?WHAT BUSINESS YOU ARE IN?
The Core Question in Strategy
Organization Environment
BUSINESSBUSINESS
What business are you in?
Business StrategyHow to fit the organization to the environment
ResourcesCompetencesConfiguration
Strenghts / Weaknesses Opportunities / Threaths
Market segmentsIndustry dynamicsNetwork partners
Value Proposition
CostDifferentiation
Focus
The Core Question in Strategy
Organization Market
What business are you in?
The Outside-In approachAdapting the organizational capabilities to market demands
Adapting
BUSINESSBUSINESS
The Core Question in Strategy
Organization Market
What business are you in?
The Inside-Out approachSelecting markets that fit to organizational capabilities
Selecting
BUSINESSBUSINESS
The Core Question in StrategyWhat business are you in?
Final Remarks…
Combine creativity and logicCombine creativity and logic
Its a matter of judgement and decidingIts a matter of judgement and deciding
Be focusedBe focused
It’s not about finding the thruth, but creating thruthIt’s not about finding the thruth, but creating thruth
THE ESSENCE OF BUSINESS STRATEGY
The Core Question in Strategy
© Dafir KramerConsultant and Lecturer in Strategy and Change
www.dksc.nl