Market strategy and the strategic pathway

Lecture 4

A route-map for market-led strategic change

Value-basedmarketingstrategy

New marketing

meetsold

marketing

Strategicthinking and

thinkingstrategically

Customer valuestrategy andpositioning

The strategic pathway

Strategicmarket choices

and targets

Market sensingand learning

strategy

Strategicrelationshipsand networks

Change strategy

Strategicgaps

Organizationand processes

for change

Implementationprocess and

internalmarketing

Part ICustomer value

imperatives

Part IIDeveloping a value-based

marketing strategy

Part IIIProcesses for managingstrategic transformation

The Customeris always

right-handed

Agenda

• What is strategy anyway?• Strategic thinking• Thinking strategically• From strategic thinking and thinking strategically to the

strategic pathway

What is strategy anyway?

• Strategy is about– competitive arenas – where we will be active– vehicles – how we will get there– differentiators – how will we win in the marketplace– staging – the speed and sequence of our competitive moves– economic logic – how will we obtain returns?

What is strategy anyway?

• A simple view of strategy– being best at the things that matter most to customers– finding new and better ways of achieving this

• Strategy should not be so complex no-one can understand it

What is strategy anyway?

• What strategy is NOT– strategic planning– analytical techniques– operational efficiency

What is strategy anyway?• Strategy IS about

– Revolution, reinvention and renewal• Breaking free from

– management tools– industry dogma and “rules”– the present– tactics and “sameness”– hostility to change

Strategic thinking

• Marketing as strategy– strategic dilemmas– the growth mandate– reinvention and renewal– the limitations of imitation– radical innovation– timing and speed– crisis and failure– social legitimacy

Strategic thinking

Marketingas

strategy

Strategicdilemmas

The growthmandate

Reinventionand renewal

The limitationsof imitation

Radicalinnovation

Timing andspeed

Crisis andfailure

Sociallegitimacy

Strategic thinking

• Strategic dilemmas– the strategy paradox– strategic goals– Schlimmbesserung (“worse improvement”)

Strategic thinking

• The growth mandate– when growth stalls– building growth platforms– adjacency and hidden assets for growth– the growth gamble

Strategic thinking

• Reinvention and renewal– new business models

• The limitations of imitation– playing catch-up– benchmarking– intellectual leadership

Strategic thinking

• Radical innovation– disruptive innovation– cannibalization– value innovation– big ideas– innovation networks

The pioneer, migrator, settler map

Pioneers:value innovate

Migrators:improve value

Settlers:me-toobusinesses

Currentportfolio

Plannedportfolio

High-growthtrajectory

Source: Adapted from W. Chan Kim and Renee Mauborgne, “Value Innovation: The StrategicLogic of High Growth”, Harvard Business Review, January-February 1997, pp. 102-113

Strategic thinking

• Timing and speed– business agility– fast strategy, or not so much– first mover advantage, or maybe not– active waiting

Strategic thinking

• Crisis and failure– it’s not our fault– it’s our fault– it’s their fault– failure– why do we get caught unawares?

Strategic thinking

• Social legitimacy– ethical standards– corporate social responsibility

Thinking strategically

• Strategizing• Barriers to strategic thinking and thinking strategically

– doing new stuff in old organizations– the halo effect– evidence-based management

• Weirdos• The opposable mind

Strategizing processes

Managementprocesses

Planning/budgeting

Strategizing

StrategyExisting/same New

Thinking strategically

• The power of creativity, judgement and emotion– emotion– gut-feeling and strategic intuition– judgement– leadership and thinking strategically

Getting to the strategic pathway

Strategicthinking

Thinkingstrategically

Strategicpathway