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Business (Competitive) Strategy
Dr Mohammad Hamsal MBA
Dr Mohammad Hamsal 2
Sustainable
Competitive
Advantage
Business
Strategy
Industry
Structure amp
Position
Resources amp
Capabilities
Strategy Development
ldquoCompetitive strategy is about being different It
means deliberately choosing to perform activities
differently or to perform different activities than
rivals to deliver a unique mix of valuerdquo
Michael E Porter (1996)
Dr Mohammad Hamsal 3
Dell Computer
Dell computer has a direct sell model that gives the company a huge advantage over any competitor
Dr Mohammad Hamsal 4
FedEx
bull FedEx ndash lets you access information about your packages through your Internet connection and Web browser
Enter your tracking number here
Dr Mohammad Hamsal 5
ZARA ndash Fashion Fast Forward
bull Zara sets itself apart with
its computerized network
that ties stores to design
shops and company-
owned factories in real
time
bull How can technology be
used to respond quickly
to shifts in consumer
tastes
Dr Mohammad Hamsal 6
Charles Schwab
bull Schwab was a first mover in
offering stock trades over the
Internet along with other online
brokers such as ETrade
bull Schwabrsquos willingness to embrace
the Internet early has made
Schwab the largest online broker
Dr Mohammad Hamsal 7
Low-cost Carriers
Dr Mohammad Hamsal 9
Business Strategy
Business Strategy
Generic Strategies
Porter
Value Disciplines
Treacy amp Wiersema
Focus on competitors Focus on customer
buying patterns
bull Overall Cost Leadership
bull Differentiation
bull Focus
bull Product Leadership
bull Operational Excellence
bull Customer Intimacy
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 2
Sustainable
Competitive
Advantage
Business
Strategy
Industry
Structure amp
Position
Resources amp
Capabilities
Strategy Development
ldquoCompetitive strategy is about being different It
means deliberately choosing to perform activities
differently or to perform different activities than
rivals to deliver a unique mix of valuerdquo
Michael E Porter (1996)
Dr Mohammad Hamsal 3
Dell Computer
Dell computer has a direct sell model that gives the company a huge advantage over any competitor
Dr Mohammad Hamsal 4
FedEx
bull FedEx ndash lets you access information about your packages through your Internet connection and Web browser
Enter your tracking number here
Dr Mohammad Hamsal 5
ZARA ndash Fashion Fast Forward
bull Zara sets itself apart with
its computerized network
that ties stores to design
shops and company-
owned factories in real
time
bull How can technology be
used to respond quickly
to shifts in consumer
tastes
Dr Mohammad Hamsal 6
Charles Schwab
bull Schwab was a first mover in
offering stock trades over the
Internet along with other online
brokers such as ETrade
bull Schwabrsquos willingness to embrace
the Internet early has made
Schwab the largest online broker
Dr Mohammad Hamsal 7
Low-cost Carriers
Dr Mohammad Hamsal 9
Business Strategy
Business Strategy
Generic Strategies
Porter
Value Disciplines
Treacy amp Wiersema
Focus on competitors Focus on customer
buying patterns
bull Overall Cost Leadership
bull Differentiation
bull Focus
bull Product Leadership
bull Operational Excellence
bull Customer Intimacy
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 3
Dell Computer
Dell computer has a direct sell model that gives the company a huge advantage over any competitor
Dr Mohammad Hamsal 4
FedEx
bull FedEx ndash lets you access information about your packages through your Internet connection and Web browser
Enter your tracking number here
Dr Mohammad Hamsal 5
ZARA ndash Fashion Fast Forward
bull Zara sets itself apart with
its computerized network
that ties stores to design
shops and company-
owned factories in real
time
bull How can technology be
used to respond quickly
to shifts in consumer
tastes
Dr Mohammad Hamsal 6
Charles Schwab
bull Schwab was a first mover in
offering stock trades over the
Internet along with other online
brokers such as ETrade
bull Schwabrsquos willingness to embrace
the Internet early has made
Schwab the largest online broker
Dr Mohammad Hamsal 7
Low-cost Carriers
Dr Mohammad Hamsal 9
Business Strategy
Business Strategy
Generic Strategies
Porter
Value Disciplines
Treacy amp Wiersema
Focus on competitors Focus on customer
buying patterns
bull Overall Cost Leadership
bull Differentiation
bull Focus
bull Product Leadership
bull Operational Excellence
bull Customer Intimacy
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 4
FedEx
bull FedEx ndash lets you access information about your packages through your Internet connection and Web browser
Enter your tracking number here
Dr Mohammad Hamsal 5
ZARA ndash Fashion Fast Forward
bull Zara sets itself apart with
its computerized network
that ties stores to design
shops and company-
owned factories in real
time
bull How can technology be
used to respond quickly
to shifts in consumer
tastes
Dr Mohammad Hamsal 6
Charles Schwab
bull Schwab was a first mover in
offering stock trades over the
Internet along with other online
brokers such as ETrade
bull Schwabrsquos willingness to embrace
the Internet early has made
Schwab the largest online broker
Dr Mohammad Hamsal 7
Low-cost Carriers
Dr Mohammad Hamsal 9
Business Strategy
Business Strategy
Generic Strategies
Porter
Value Disciplines
Treacy amp Wiersema
Focus on competitors Focus on customer
buying patterns
bull Overall Cost Leadership
bull Differentiation
bull Focus
bull Product Leadership
bull Operational Excellence
bull Customer Intimacy
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 5
ZARA ndash Fashion Fast Forward
bull Zara sets itself apart with
its computerized network
that ties stores to design
shops and company-
owned factories in real
time
bull How can technology be
used to respond quickly
to shifts in consumer
tastes
Dr Mohammad Hamsal 6
Charles Schwab
bull Schwab was a first mover in
offering stock trades over the
Internet along with other online
brokers such as ETrade
bull Schwabrsquos willingness to embrace
the Internet early has made
Schwab the largest online broker
Dr Mohammad Hamsal 7
Low-cost Carriers
Dr Mohammad Hamsal 9
Business Strategy
Business Strategy
Generic Strategies
Porter
Value Disciplines
Treacy amp Wiersema
Focus on competitors Focus on customer
buying patterns
bull Overall Cost Leadership
bull Differentiation
bull Focus
bull Product Leadership
bull Operational Excellence
bull Customer Intimacy
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 6
Charles Schwab
bull Schwab was a first mover in
offering stock trades over the
Internet along with other online
brokers such as ETrade
bull Schwabrsquos willingness to embrace
the Internet early has made
Schwab the largest online broker
Dr Mohammad Hamsal 7
Low-cost Carriers
Dr Mohammad Hamsal 9
Business Strategy
Business Strategy
Generic Strategies
Porter
Value Disciplines
Treacy amp Wiersema
Focus on competitors Focus on customer
buying patterns
bull Overall Cost Leadership
bull Differentiation
bull Focus
bull Product Leadership
bull Operational Excellence
bull Customer Intimacy
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 7
Low-cost Carriers
Dr Mohammad Hamsal 9
Business Strategy
Business Strategy
Generic Strategies
Porter
Value Disciplines
Treacy amp Wiersema
Focus on competitors Focus on customer
buying patterns
bull Overall Cost Leadership
bull Differentiation
bull Focus
bull Product Leadership
bull Operational Excellence
bull Customer Intimacy
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 9
Business Strategy
Business Strategy
Generic Strategies
Porter
Value Disciplines
Treacy amp Wiersema
Focus on competitors Focus on customer
buying patterns
bull Overall Cost Leadership
bull Differentiation
bull Focus
bull Product Leadership
bull Operational Excellence
bull Customer Intimacy
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 10
Uniqueness Low Cost Position
Strategic Advantages
Differentiation Overall Cost Leadership
Focus
Focus
Differentiation Focus Low Cost
Porterrsquos Three Generic Strategies
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 11
Low Cost
bull Relatively high market share or access to other
advantages
bull Building volume through wide product line
andor serving many customer segments
bull Aggressive pricing
bull Initial loses to build market share
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 12
Low Cost Provider ndash Example
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 13
Low-Cost ndash Other Examples
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 14
Differentiation
bull Defined as something that is viewed as unique
industry wide
bull May preclude high market share
bull Requires close relationship with key customers
bull Requires continual investment in RampD service
or other differential advantage
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 15
Differentiation ndash Example
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 16
Types of Differentiation Themes
bull Multiple features ndash Microsoft Windows and Office
bull Wide selection and one-stop shopping ndash Home Depot Amazoncom
bull Superior service -- FedEx Ritz-Carlton
bull Spare parts availability ndash Caterpillar
bull Engineering design and performance ndash Mercedes BMW
bull Prestige ndash Rolex
bull Product reliability ndash Johnson amp Johnson
bull Quality manufacture ndash Toyota Michelin
bull Technological leadership ndash 3M Corporation
bull Top-of-line image ndash Ralph Lauren Starbucks Chanel
bull Unique taste ndash Dr Pepper
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 17
Focus
bull Assumes that a narrow market can be more effectively or efficiently served than by bigger competitors
bull Requirements
ndash Identification of market niche not being adequately addressed
ndash Directing firm energies on a particular buyer group product line segment or geographic niche
ndash Meeting buying criteria of niche (either low cost or differentiation)
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 18
Focus ndash Examples
Ferrari (Differentiated Focus)
Yugo (Low Cost Focus)
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 19
Focus ndash Other Examples
bull Animal Planet amp History Channel
ndash Cable TV
bull Google
ndash Internet search engines
bull Porsche
ndash Sports cars
bull Cannondale
ndash Top-of-the line mountain bikes
bull Enterprise Rent-a-Car
ndash Provides rental cars to repair garage customers
bull Bandag
ndash Specialist in truck tire recapping
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 21
Differentiation Low Cost
Use a single aircraft model
(Boeing 737)
Use secondary airports
Fly short routes
15 minute turnaround time
No meals
No reserved seats
No travel agent reservations
Focus on customer
satisfaction
New flight services for
business travellers
(Phones and faxes)
High level of employee
dedication
Integrated Low CostDifferentiation
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 22
Singapore Airlinesrsquo Combined Strategy
So
ur
ce
H
er
ac
le
ou
s e
t a
l
(2
00
9)
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 23
Product Leadership
bull Objective to strive to produce continuous state-
of-the-art products and services
ndash Embrace new ideas that may originate outside of the
company
ndash Quickly commercialize new ideas
ndash Aggressively pursue new solutions that obsolete
current products or services
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 24
Operational Excellence
bull Objective to lead the industry in price and convenience by aggressively seeking ways to reduce costs
ndash Minimize overhead
ndash Eliminate production steps
ndash Reduce transaction costs
ndash Deliver products at competitive price with minimal inconvenience
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 25
Customer Intimacy
bull Objective to continually tailor products and
services to fit an increasingly fine definition of
the customer
ndash Expensive to implement but builds long-term
customer loyalty
ndash Focus on customerrsquos lifetime value
ndash Employees receptive to customer requests
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 26
Value Disciplines - Examples
Product Leadership
bull Hewlett Packard
bull 3M
bull Rubbermaid
bull Apple
bull Nike
Operational Excellence
bull Dell Computer
bull Wall Mart
bull Federal Express
bull Southwest Airlines
Customer Intimacy
bull Nordstrom
bull Home Depot
bull Steinway
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 27
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 28
What is this Companyrsquos Strategy
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 29
(Customer solutions)
(Product pyramids)
(Integrated services)
(Brand) Yours
What is Your Business Model Why
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
Dr Mohammad Hamsal 30
bull Temporary advantage - whatever you do sooner or later the competition duplicates what yoursquove done
bull First mover - the company who is first to market with a new IT-based product or service
bull Distribution chain - the path followed from the originator of a product or service to the end consumer
bull Important considerations you should keep in mind as you work to bring an IT competitive advantage to your organization include
1 Be efficient and effective
2 Competition is all around you
3 Push the state-of-the-art
4 IT competitive advantages are only temporary
Summing It Up
