Presentation on theme: "-1- Business ARENAAll rights reserved 2002 Alex Coman The ARENA Genome: Harmonic Strategic Planning."— Presentation transcript:
Business ARENAAll rights reserved 2002 Alex Coman The ARENA Genome: Harmonic Strategic Planning Arena Layers: Corporate, Business Function- Define Hierarchy Refinement Stages: Arena, Focus, Action Create Strategy ARENAARENA FOCUSFOCUS ACTIONACTION Arena actors: Partners, Threats; Current, Future Tailored Patterns. Dynamic Vectors: Vision, Venture, Value. Act, Review, Revise Corporate Layer: Portfolio Businesses Maximize Value Function Layer: Process, Project and Product Agile value drive Business Layer: Positioning Products by Market Strategy Filter Criteria Prioritize attention Manage Control span
Business ARENAAll rights reserved 2002 Alex Coman # Institutions Size FocusDeath Valley Juggernaut Bank size and Product-market strategy Business Arena Sustainable Competitive Advantage Low CostDifferentiation Market Scope Mass Market Cost LeadershipDifferentiation Niche Cost FocusFocused Differentiation Deep Products Tata RRRR $ Quality Stuck In the Middle Hyundai BMW
Business ARENAAll rights reserved 2002 Alex Coman Attack angle: Skimming (Type I disruptive Innovation) PC Processors $D P III 486 Focus: Returning R&D investment, Constrained production capacity, Limited demand Crossing the Chasm $D Chasm Ampex $50K Sony Beta Matsushita VHS Cell Phone $D Beeper Pelephone Niche Products Satellite Iridium` Hong Kong Effect Time/Quantity Cost Leader Follower Advantage Orange Cellcom IBM Effect Non-recurring Skim Niche Mass Market Distributors Specialists Generalists Skeptics: Technology Supporters: Product Chasm Supporters: Company Skeptics: Market Time Sales
Business ARENAAll rights reserved 2002 Alex Coman Attack angle: Storming Storming Pharmaceutical $ D Chasm 1. Ethical Viagra Prozak 2. Generic Storming $ D 1.Leader: Apple Closed Architecture Self sufficient 2.Follower: IBM effect Open Architecture Outsourcing 3. Me Too:No Name Hong Kong Effect Compaq Devoted Follower Time 1 st 50% Price 2 nd 50% Patent Umbrella Pricing Focus: Maximizing revenues during patent duration; Rigid demand Storming $ D Sensor Excel (+60%) Mach3 +35% Atra European Patent Office NanogenMotorola Oxford Gene Technology Applied Biosystems Affymetrix Multilyte Protogene Laboratories Incyte Genomics Gen Logic Synteni HyseQ Affymetrix, microarray Gene Chip producer: quarterly report, Nov. 2000, 5 years after launch: The company may lose customers unless it improves its ability to manufacture its products and ensure their proper performance Researchers: chips with spurious results, delivery months beyond schedule No real competitors to lose customers: 400 < ssued and pending patents License agreements with 20 companies – restrict to arrays 1/10 affymetrix genetic probes Competitors: Patents on own designs: Incyte Genomics: use robots to deposit up to 10,000 pre- synthesized genetic probes onto a glass slide. Motorola holds the probes inside a thin slab of gel. Nicholas Naclerio, head Motorolas BioChip division: if we want to make a medical diagnostic with 40 genes on it, and 20 companies hold patents on those genes, we may have a big problem.
Business ARENAAll rights reserved 2002 Alex Coman Attack angle: Flooding 1. Server Navigator Acrobat Focus: Market share leadership (Eyeballs, Hits); Lock-in+Oligopoly+Value added Cost of ownership - CoO 1.IBM White planes Ford Levittown Diners Zara IKEA McDonalds 2.Toyota Honda 1. Client Navigator 2. Explorer NT Sony Sony: $279+ RealNetworks Nintendo: Dolphin IBM+3D by ArtX MS Xbox $ ($125) Launch: 800K games, $500M marketing budget Stage 1 Opening Consolidation vs. Death based on 25,000 companies Stage 2 Scale New/deregulated/ Privatized Industry Stage 3 Focus Stage 4 Balance&Alliance 0% 20% 40% 60% 80% 100% Railway Telecom Services Utilities Insurance Banks Airlines Chemicals Drugs Automotive Suppliers Pulp & Paper Restaurants &Fast food Breweries Food Steel makers Automotive OEMs Rubber & Tire prod. Toys Truck builders Aerospace suppliers Aircraft OEMs Shipbuilding Distillers Defense Automatic controls Tobacco Shoes Soft Drinks 25 Years CR3: Market share Dumping $D Leveraged Dumping $D Flooding $D Hybrid Car Dumping $D
Business ARENAAll rights reserved 2002 Alex Coman Attack angle: Piercing / Guerilla (Type II disruptive Innovation) 2.Red Hat Focus: Penetrating through niche, transforming non-entity into recognized brand 1.Shareware: fusion Copy Left: Gnu, Ada Komatsu Korean Toyota, Honda, Nissan Lexus Acura Infinity CHASMCHASM Japanese Guerilla $D OEM S.E. Asian Guerilla $D Linux Guerilla $D