Published on January 17, 2009
Building strategic differentiation: The top priority of industry leaders www.quadric.dk Copyright © Quadric® 2009
Differentiation was once a choice of strategy, today it needs to be part of any strategy
Differentiation guides decisions Copyright © Quadric® 2009 3
Volvo owns ”safety,” BMW owns ”the experience” Positioning Operational statement evidence Leadership in: Safety systems innovation For life. Superior crash test performance Leadership in: The ultimate Combining performance, style Copyright © Quadric® 2009 driving machine. and luxury Superior engineering 4
UPM owns ”continuous improvement,” StoraEnso owns ”innovation” Positioning Operational statement evidence Leadership in: Customer relationship management We lead. Quality improvement programs We learn. Wood tracking and certification Leadership in: Product range What paper can do. Copyright © Quadric® 2009 R&D pushing the boundaries of paper Promoting new applications 5
Industry leaders add strategic differentiation to traditional business strategy Traditional business strategy Strategic differentiation + Targeting a desired industry ranking Targeting a desired reputation + Optimizing a portfolio of businesses Optimizing a portfolio of brands + Aligning organization with strategy Aligning culture with desired reputation + Marketing drives sales Marketing also drives positioning + Tracking financial performance Tracking positioning performance Copyright © Quadric® 2009 = Industry leadership 6
Traditional strategy is developed and managed through the organization Copyright © Quadric® 2009 Traditional strategy 7
”Strategic differentiation” is developed and managed across the value chain Investors Suppliers Company Distributors Dealers/ End-users Influencers retailers Copyright © Quadric® 2009 Strategic differentiation 8
This requires changing management priorities, not organizational structure Traditional business strategy Strategic differentiation + Investors Suppliers Company Distributors Dealers/ End-users Influencers retailers Copyright © Quadric® 2009 Developed and managed Developed and managed through the organization through the value chain 9
www.quadric.dk Copyright © Quadric® 2009
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