STRATEGY TO WINPresented by Founder of AVC Edelman

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COMPETITIVE STRATEGY IS ABOUT BEING DIFFERENT.

IT COMPREHENDS CHOOSING A SET OF ACTIVITIES TO DELIVER A UNIQUE VALUE.

MICHAEL PORTER STRATEGY DEVELOPMENT IS

QUESTION-BASED:

WHERE ARE WE NOW?

WHERE WOULD WE LIKE TO GO?

HOW TO GET THERE?

PETER EDELMANN

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WHAT IS THE WINNING?

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Define winning in your context, painting a picture of successful future of your organization1

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Ask the question of WHY this organization exists?

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Why Apple exists?To give people new touch to

technology that inspires people to think different

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Do start with consumer rather than products – think about consumer’s problem3

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Think about winning relative to competition. Think about your traditional competitors, and look or unexpected “ best” competitors too

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THE COMPETITION IS ‘ANY FOOD’ THAT GOES WITH LIFESTYLE & MODERNITY

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WHERE TO WIN?

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Do choose Where you play and Where you will not play? (Explicitly choose and prioritize choices across all relevant where dimensions – geographies, industry segments, consumers, customers, products…)

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Slide 12BEER SU TU TRANG & ITS SUCCESS STORY IN MEKONG DELTA

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Look for attractive segments in which you can compete and win

Don’t embark on a strategy without specific where choices. If everything is priority, nothing is. There is no point in trying to capture all segments.

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Do look for places to play that will enable you to attack from unexpected directions, don’t attack walled cities or take your strongest competitors head to head if you can help it

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Don’t start war on multiple fronts at once. Plan for your competitors reactions to your initial choices, and think multiple steps ahead4

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No single choice needs to last forever, but it should last long enough to confer the advantage you seek5

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HOW TO WIN?

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Create sustainable competitive advantage and no one single how to win choice for all companies1

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Winning means providing a better consumers and customers value equation than your competitors do and provide it on a sustainable basis.

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By Michael Porter : just 2 generic ways of doing so: COST LEADERSHIP & DIFFERENTIATION

Both cost leadership and differentiation require the pursuit of distinctiveness

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LOW COSTSystemic understanding of cost/ cost drivers

Relentless reduction of costs

Sacrifice of nonconforming customers

Commitment to standardization

Cost leaders can create advantage at many different points- sourcing, production, distribution and so on…

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DIFFERENTIATIONDeep and holistic understanding of customersIntensive brand buildingCommitment to innovation

Differentiators can create a strong premium on brand, quality, services …

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DON’T & DO

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• Create how –to –win choices where none current exist

• If after lots of searching, you can’t create a credible how-to-win choice, find a new playing field or get out of the game

• Do consider how to win in concert with where to play

• Don’t assume that the dynamics of an industry are set and immutable. Industry dynamics might be changeable

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CAPABILITIES - PLAY YOUR STRENGTHS• Do play to your own, unique strengths

• Ask how to make your truly distinctive and value creating

• Don’t obsesses about whether something is a core capabilities or a supporting activities. Capture the most important activities required to deliver on your where to play and how-to –win choices

• Do be honest about the state of your capabilities, asking what will be required to keep and attain the capabilities you require

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MANAGEMENT SYSTEM – MANAGE WHAT MATTERS • Don’t stop at capabilities, ask yourself which management

systems are needed to foster these capabilities

• Build system and measure that support both enterprise- wide capabilities and business specific capabilities

• Define measures how you are performing relative to your strategic choices