Strategy Toolkit Welcome to the “Strategy Toolkit” Good strategy is .ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * The value discipline model helps you position competitors or industries against one another according to three generic capabilities: product leadership, operational excellence, and customer intimacy. Use the value disciplines chart to demonstrate key competive differentiators. It is a tool designed to aid discussion and thought, whether internally or with the client, rather than in final analysis or in presentations or packs, and usually works better at a high level than in a data rich environment. Begin by carefully defining the market or industry you are assessing and identifying the competitors. Try to be open and imaginative about potential competitors: think about companies that address the same audience, or require consumers to act in a similar way (e.g. bars vs. gyms as places where only a finite and competitive period of time can be spent). Gather data on each of your competitors, in both qualitative and quantitative forms. Organize your information against the three predefined capabilities: if your information is quantitative rank against each capability; if qualitative, rank in discussion with your client. Plot the resulting data on a chart in Excel according to the rankings you have identified. You can do this using the Radar function in the Chart menu. Always remember that this is an indicative tool, not a proof of a right answer. However, it can illustrate a point, or highlight a lack of focus in certain areas. * Value disciplines Typical application Typical process Description Tricks and tips Example output One major drawback of the value discipline diagram is that it implies a counter-relationship between capabilities: if a company performs particularly well on one axis, it undermines the comparative performance on others due to the shape of the diagram. Be aware of this when you are discussing your results with your client. Make sure you think in advance about the scale