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Trainin –12Jan00 -*- BlueprintChina standardized icon A GENERAL FRAMEWORK THE ANALYSIS OF COMPETITIVE POSITIONIS AT THE HEART OF STRATEGY WORK The Analysis Drivers of advantage What drives competition and competitive advantage? How will this evolve? Client position What is the client抯 structural position and capabilities? Where is the client advantaged/disadvantaged? To what degree? How might this be improved? The Result Client strategy that builds competitive advantage Shaping industry outcomes Defining position and capabilities needed for success IDENTIFYING THE DRIVERS OF ADVANTAGE The Analysis Drivers of advantage What drives competition and competitive advantage? How will this evolve? Client position What is the client抯 structural position and capabilities? Where is the client advantaged/disadvantaged? To what degree? How might this be improved? A Basic Approach 1. Assess customer value 2. Identify the levers of customer value FIRMS GENERATE VALUE FOR CUSTOMERSIN TWO BASIC WAYS Enhance customer performance Facilitate their ability to create value with their customers, through speed, quality, features, etc. Enhance their satisfaction Reduce customer costs Directly: through low prices Indirectly: by saving the customer other costs Assess Customer Value A SIMPLE EXAMPLE: PAPER PRODUCT MANUFACTURER SERVING TWO SEGMENTS Segments Customer Value Drivers Some Importance Sways Purchasing Decisions Expected by Customers Vital to Customers Small Regional Printers Broad product range Many special orders Require significant sales and technical support Large National Printers Narrow product range Long run lengths Highly price sensitive Require infrequent sales and technical support Sensitive to delivery performance Availability of product and technical information Competitive price Fast delivery Low out of stocks Quick access to price and delivery information Availability of product and technical information Quick access to price
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