Competitive Positioning - Scenario Development - Option Planning

8 important questions on Competitive Positioning - Scenario Development - Option Planning

What is option planning?

The option you give to the client, that contain possible advice or strategic options on how the can "takcle the future".

What is internal perspective?

Is our organisation equipped to survive and flourish in any of the multiple equally plausible future environments we may be facing?

Business Idea is weak--> Capabilities (capability options)

What is an external perspective?

Do we have the right portfolio territory?

Business Idea is robust--> Business Portfolio (portfolio options)

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Which four steps are there after setting the scenarios?

  1. Overview of the capabilities: capability review
  2. Overview of the current portfolio: Portfolio review.
  3. Generating strategic options
  4. Testing the strategic options --> whether these are the right options.

From this, you come to a sort of end conclusion.

What is the  inside-out focus about due to portfolio options?

Inside-out focus (Investments in organic growth): c

  • oncentrated growth (expansion into similar markets adjacent to those already served)
  • market development (investments in expansion of market share)
  • product development (spreading the Business Idea across a wider range of products).

 

What is the outside-in focus about due to the portfolio options?

 

Outside-in focus (investment in growth through partnerships, joint ventures, mergers &, acquisitions etc.):

  • horizontal integration (expand into adjacent similar markets by mergers and acquisitions)
  • concentric diversification (expand into different, but closely related markets by mergers & acquisitions).

What is the inside-out focus about due to capability options?

(investments in organic growth):

- market development (developing new relational Distinctive Competencies in the market),

- product development (developing new generative Distinctive Competencies, leading to new product ideas),

- innovation (applying new combinations of Distinctive Competencies, changing the "rules of the commercial game", cost innovation).

What is the outside-in focus about due to capability options?

Outside-in focus (partnerships, acquisitions etc.--> buying companies):

- vertical integration (Buying competencies that leverage the existing Business Idea upstream or downstream of current activity)

- conglomerate diversification (Buying competencies that leverage the Business Idea in new business areas).

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