900 Pound Gorilla

The Strategy TechniqueBeating the 900 Pound Gorilla

Kelly Lefkowitz, PresidentKelly Lefkowitz, President

Strat/AssistStrat/Assist12610 Mitchell AvenueSuite EightLos Angeles CA 90066310.980.6641 kellylef@comcast.net

Play Differently

Three Faces of Corporate Strategy

Product Leadership Operational Excellence Customer Focus (Intimacy)

Product Leadership

Innovation New Product Introduction Product Design Brand/Reputation

SPEED!

Product Leadership Examples

Intel Proctor & Gamble Sony Nike Ralph Lauren Amazon.Com

Operational Excellence

Low Prices High Quality Hassle Free Service

SIMPLICITY!

Operational Excellence Examples

Wal-Mart Federal Express Gateway 2000 Saturn Limited Southwest Airlines

Customer Focus (Intimacy)

Best Product + Best Price = Best Value Live the Customers Problems Close Relationships Help Companies to

Recognize Customer Needs

FLEXIBILITY!

Customer Focused Companies

Bennetton Chapperal Steel Cheetah Software Systems Ryder Logistics

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.

The Strategic Technique

Product OperatingEfficiency

CustomerIntimacy

Product OperatingEfficiency

ProductCustomerIntimacy

OperatingEfficiency

CustomerIntimacy

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

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

Using the Strategy Technique

To Analyze Your Customers/Segment Your Markets

To Position Yourself Against Competition To Provide Focus to Your Employees/

Co-workers

Analyze Your Customers/ Segment Your Market A Brilliant Sales Tool Sales Force Intuition Focus On Your Target Market

Position Against Your Competition How Do They Play The Downside of Each Strategy Go for the Soft Spot

Focus Your Employees

Simple to Understand the Strategy Training Costs Reduced Decisions Are Easier to Make

Your Customer’s Triangle

Primary Strategy

Secondary Strategy

Tertiary Strategy

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

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

If A Customer is Flexibility Focused Operating Efficiency Helps

– Consistency of Product & Service

Flexibility Helps– J-I-T– Strategic Alliance

Your Competition’s Triangle

Primary Strategy

Secondary Strategy

Tertiary Strategy

Your Strategy Triangle

Primary Strategy

Secondary Strategy

Tertiary Strategy

Beat the 900 Pound Gorilla!!!

900 Pound Gorilla

Documents

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The 900-Pound Gorilla

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