The Penta Model α COMPETITIVE FACTORS

(how-to-win)

E. DISRUPTIVE VALUE The customer is attracted by an conceptually innovative product or by a technology-enabled low cost product of acceptable quality

A. BEST PRODUCT The customer is attracted by the characteristics of a superior product

B. TOTAL CUSTOMER SOLUTION

Provide a customized solution to customer’s

most pressing needs

C. SYSTEM LOCK-IN Establish dominance

in the market

E2. Disruptive Innovation Cost-reducing technology or method innovation that offers acceptable quality to the customer, at low prices

E1. Conceptual Innovation Conceptually new, higher value product , with lower cost, and attracting marginal customers or nonconsumers

A1. Low Cost Lowest-cost provider for an undifferentiated product category, allowing the lowest-price offering

A2. Differentiation Development of features and functionalities that make the product unique, commanding a premium price

B1. Customer Intimacy Provide a unique experience to the customer throughout the complete cycle of ownership

B2. Added Value Transfer knowledge to the customer, in order to enhance the product value

B3. Horizontal Breadth Satisfy all the meaningful

customer needs for related products (one-stop-shop)

C1. Exclusive Channel Significant barriers set in place to make it difficult

for competitors to access the customer

C2. Dominant Exchange Set an interface between buyers and sellers that is

difficult to displace once it achieves critical mass

D1. Proprietary Standard Capture an extensive set

of complementing products that enhance the product value

Note: The A-C Strategic Positions and their included Strategic Choices are based on Arnoldo C. Hax’s Delta Model

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D. PROPRIETARY ENABLERS Control proprietary Standards, rare Resources or Core Capabilities that enable a unique value proposition D2. Core Resources or Capabilities

Gain ownership of rare Resources or develop proprietary Core Capabilities that enable a unique value proposition

The Penta Model β MARKET BOUNDARIES

(where-to-play)

J. MARKET CREATION Conceptually new markets or future trend markets

F. MARKET FOCUS Market segmentation, allowing a customised targeting, according to specific customer needs or buying behavior

G. CHANNEL FOCUS Sales channel re-focus or

customers targeted by proximity or buying convenience

H. DIVERSIFICATION Collateral or substitute products markets entry

J2. Future Market Trend markets, formed by early adopters of innovative products (early mover advantage)

J1. Market Redefinition Conceptually new markets, targeting mainly marginal customers or nonconsumers

F1. Needs Segmentation Market segmentation based on strategic groups demographics, buying patterns or life styles

F2. High-End Market High-value customers, demanding premium products and customised seler-buyer relationships

F3. Long Tail Large number of price-sensitive and low-value customers, (commodity market)

G1. Proximity Market Customer market defined by the proximity to the sales channel locations or by the improved buying convenience

G2. Sales Channel Refocus Customer re-definition for

better customer intimacy or increased market penetration

H1. Collateral Market Existing customers

targeted for new products, displacing existing vendors

H2. Substitute Market Adapted existing products

that substitute existing ones, in a different industry

I1. New Domain/Industry New domain/industry market entry,

with new products, leveraging a corporate group or holding structure

© 2015 – Strategic Systems Consulting

I. NEW MARKETS New local domains/industry entry or international markets entry

I2. Internationalisation New market entry in different geographies with the same or localised products