Saturday 6 November 2010

Operational Effectiveness vs Strategy part2

The Origins of Strategic Positions

Variety-based positioning.

Producing a subset of the industry's product/service and doing it well - a superior value chain eg a furniture retailer that only sells sofas.

Needs-based positioning.

Similar to traditional segment targeting, serve most or all of the needs of a group of customers, eg price sensitive furniture buyers (Ikea). Customers may have different needs on different occasions. Differences in needs require that the best set of activities to satisfy them also differs.

Access-based positioning

Your strategy here is focused around how people actually obtain your product or service. Porter gives the example of a cinema chain that focuses only on rural communities in the US. I can think of the example of a satellite broadband provider, for people who can't get this service via other means. This allows them to be the dominant player in their market.

However positioning is not just about being the dominant player in a niche.

Your strategic position may be based on a combination of these factors.

So What is Strategy? The creation of a unique and valuable position, involving a different set of activities.

But... (cont...)

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