Strategy design at cluster and company levelCarlos Tarrasón

Breakout Session: Strategic desing thinking – cluster strategy

5 September 2013

16th TCI ConferenceTrack 2B Cluster StrategyStrategy design at cluster and company level

5th September 2013Kolding, Denmark

Who am I?

What is strategy?

How to develop a cluster strategy? And a company

strategy?

Understand the cluster and the market..Example: Bakery cluster in Belo Horizonte

.. and follow a methodology

X

1. Define the business

Y

Z

2. Define the business segments

W

3. Define attractiveness and choose one

X

4. Define strategies and choose the best

BA

C

1. Define the businessBakery sector: Production and commercialization of flour-based food baked in an oven

Bread CookiesCakes, Pastries, Pies

2. Define business segments

Product

Value chain

Demand needs

Bakery business segments

FRESH

(SHORT LIVE)

NO FRESH

(LONG LIFE)

Whole saleB 2 B

RetailB 2 C

Industrial(preservatives)

Artesan(par-baked)

3. Choose one segment

Bargaining power of suppliers

Bargaining power of buyers

Rivalry

Entry barriers

Substitute products

Which segment is better for the cluster?

FRESH(SHORT LIFE)

NO FRESH

(LONG LIFE)

Whole saleB 2 B

RetailB 2 C

Industrial(preservatives)

Artesan(par-baked)

And for a company?

FRESH(SHORT LIFE)

NO FRESH

(LONG LIFE)

Whole saleB 2 B

RetailB 2 C

Industrial(preservatives)

Artesan(par-baked)

4. Choose your strategy

BA

C

Main variables to compete in “Fresh Retail”

-

-

Service+

QualityComom Gourmet Gastronomy

Bread

Bread+

casual food

Bread+

Restaurant

Strategies in “Fresh Retail”

-

-

Service +

QualityCommon Gourmet Gastronomy

Bread

Bread+

casual food

Bread+

Restaurant

Specialized Bakery

Bakery and fresh casual

Bakery and “café”

Bakery and Chef

Restaurant

Regular bakery

Cluster most suitable strategies

-

-

Service +

QualityComom Gourmet Gastronomy

Bread

Bread+

casual food

Bread+

Restaurant

Specialized Bakery

Bakery and fresh casual

Bakery and “café”

Bakery and Chef

Restaurant

Regular bakery

Different strategies = Different KSF

Quality Product mix: bread, fresh food-service products Productivity by volume Efficient service

Quality & Identity Product mix by

consumption moment Product mix: Special breads, ultra fresh food-service and gourmet products Cross specialized production units Differentiated service

Innovation for differentiation has to happen at the different levels (cluster, companies, etc)

Business models for the main strategies

Food solutionsFood solutions

CommercialCommercialTo GOTo GO

To STAYTo STAY

IndulgenceIndulgence ResidentialResidential

X X X X

OwnOwn

OutsideOutside

HighHigh

Med-LowMed-Low

What Where purchases

Where consumes Production Income

To innovate we have to pursue innovation and follow a

methodology

And understand the market references

Empresas e instituições em São Paulo

Empresas em RJEmpresas e instituições em San Francisco

Empresas em Los Angeles

Thanks to the institutions that support this work