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Strategic Differentiation

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Information about Strategic Differentiation
Business & Mgmt

Published on January 17, 2009

Author: msherain

Source: slideshare.net

Description

Differentiation was once a choice of strategy, today it needs to be part of any strategy.
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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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