Market strategy and the strategic pathway Lecture 4 1

A route-map for market-led strategic change Part I Customer value imperatives Part II Developing a value-based marketing strategy Part III Processes for managing strategic transformation The strategic pathway Change strategy Market sensing and learning strategy The Customer is always right-handed Strategic gaps Strategic market choices and targets Strategic thinking and thinking strategically New marketing meets old marketing Organization and processes for change Customer value strategy and positioning Implementation process and internal marketing Value-based marketing strategy Strategic relationships and networks

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 Strategic dilemmas Social legitimacy The growth mandate Crisis and failure Marketing as strategy Reinvention and renewal Timing and speed The limitations of imitation Radical innovation

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 High-growth trajectory Migrators: improve value Settlers: me-too businesses Current portfolio Planned portfolio Source: Adapted from W. Chan Kim and Renee Mauborgne, “Value Innovation: The Strategic Logic 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 Management processes Planning/ budgeting Existing/same New Strategy

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 Thinking strategically Strategic thinking Strategic pathway