2. BROAD MAPPING OF INDUSTRY ENVIRONMENTS
Distribution logistics
Processed foods
Automotive
Medical devices
Known
Customer Expectations
Pharmaceuticals
Consumer electronics
Changing
Pet care
Education
Stable
Changing
Environmental Landscape

3. CONSOLIDATORS Arenas: Vehicles: Distinguishing Features: Staging:
Economic Logic:
Discipline:
Broad-line markets/wide product lines
Long-term supplier relationships, selective mergers & Acquisitions
Low cost, standardized offerings
Outsourcing to reduce backward integration
Attain maximum scale to reduce costs; industry leader
Operational efficiency

4. PIONEERS Arenas: Vehicles: Distinguishing Features: Staging:
Economic Logic:
Discipline:
New products, new core technologies
Internal development & external licensing to larger firms
First-to-market, fast innovation, patents
Quick expansion into niche markets; develop sequential new technologies in R&D
Generate high royalties from proprietary technology/patents; premium pricing for niched products
Product leadership

5. TRENDSETTERS Arenas: Vehicles: Distinguishing Features: Staging:
Economic Logic:
Discipline:
New market entry based on core product concept
Internal development of product concepts; related acquisitions
Customization, fast innovation, branding
Penetration & development of related products & neighboring geographic markets
Command superior pricing through customer loyalty or proprietary features
Customer Intimacy

6. REINVENTORS Arenas: Vehicles: Distinguishing Features: Staging:
Economic Logic:
Discipline:
Mature markets impacted by disruption
“Skunkworks,” incubation of new businesses, strategic alliances with related firms
New product introduction, case-of-use by customers
Sequencing is difficult due to cannibalization
Seek premium prices based on new products or low cost to serve large markets
Resource allocation

7. SOWING SEEDS FOR DESTRUCTION
Consolidators:
Market share plateaus
Financial tactics drive strategy
Boiling Frog Syndrome

8. SOWING SEEDS FOR DESTRUCTION
Pioneers:
Cash flow dries up
Key people leave
Entrepreneurial graveyard

9. SOWING SEEDS FOR DESTRUCTION
Trendsetters:
Brand name becomes stale
Imitation by rivals
Retreat to cave

10. SOWING SEEDS FOR DESTRUCTION
Reinventors:
Poor resource allocation
Fiefdoms
Dinosaur pit

11. STRATEGIC LEADERSHIP IMPERATIVES
Consolidators:
Acquire complimentary
capabilities
Focus on core competencies
Create a culture that values
efficiency & execution

12. STRATEGIC LEADERSHIP IMPERATIVES
Pioneers:
Monitor cash flow
Champion new products
Create a culture that values
diverse opinions & participation

13. STRATEGIC LEADERSHIP IMPERATIVES
Trendsetters:
Avoid cannibalization
Manage brands image
Create a culture that values
customer loyalty & service

14. STRATEGIC LEADERSHIP IMPERATIVES
Reinventors:
Manage diverse product
portfolio
Acquire pioneers & sell
businesses past their peak
Create a culture that values
cross-product cooperation &
sharing resources

15. TESTING THE QUALITY OF YOUR STRATEGY
Key Evaluation Criteria 1. 2. 3.
Does your strategy fit with what’s going on in the environment?
Is there healthy profit potential where you’re headed? Does your strategy align with the key success factors of your chosen environment?
Does your strategy exploit your key resources?
With your particular mix of resources, does this strategy give you a good head start on competitors? Can you pursue this strategy more economically than competitors?
Will your envisioned differentiators be sustainable?
Will competitors have difficulty matching you? If not, does your strategy explicitly include a ceaseless regimen of innovation and opportunity creation?

16. TESTING THE QUALITY OF YOUR STRATEGY4. 5. 6.
Are the elements of your strategy internally consistent?
Have you made choices of arenas, vehicles, differentiators, and staging, and economic logic? Do they all fit and mutually reinforce each other?
Do you have enough resources to pursue this strategy?
Do you have the money, managerial time and talent, and other capabilities to do all you envision? Are you sure you’re not spreading your resources too thinly, only to be left with a collection of feeble positions.
Is your strategy implementable?
Will your key constituencies allow you to pursue this strategy? Can your organization make it through the transition? Are you and your management team able and willing to lead the required changes?