Strategic planning - Strategy

9 important questions on Strategic planning - Strategy

A strategy is management's game plan to achieve five things. What are these?

  • Attract and please customers
  • Stake out a market position
  • Conduct operations
  • Compete succesfully
  • Achieve organisational objectives

There are five value disciplines in order to differentiate yourself from your competitors. What are these?

  1. Product leadership
  2. Cost leadership/operational excellence
  3. Customer intimacy
  4. Experience
  5. Community building

What model should be used in the strategic planning? And why?

The SWOT model because it determines your position in the market against competitors and it determines how you can differentiate yourself.
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What kind of value discipline is product leadership?

The product quality is leading in all the things they are doing.

What kind of value discipline is cost leadership/operational excellence?

These companies believe that the customers they want to reach are mainly interested in buying at a low price.

What kind of value discipline is customer intimacy?

These companies stay very close to what the customers' needs are and they are able to adapt quickly to the changing needs of its customers. High market intelligence!

What is kind of value discipline is experience?

It is all about the experience the customer has with its product/service. Customers want to be close to the experience and therefore buy the products.

What is kind of value discipline is community building?

These companies try to build a community and try to get people on board who believe in the strategy.

Do companies choose one value discipline or do they combine them?

Companies choose one of the value disciplines or try a combination; however, a product leadership discipline cannot be used in combination with a cost leadership discipline. There is always one of the five disciplines dominant.

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