This PPT slide, part of the 51-slide Complete Guide to Business Strategy Design PowerPoint presentation, outlines 2 primary strategies for enhancing a company's position within appealing market segments: raising relative performance and creating new sources of advantage. The left section emphasizes the importance of improving relative performance, suggesting that merely enhancing cost efficiency or differentiation isn't sufficient. It highlights that a stronger relative position is crucial for elevating overall performance. The accompanying graph illustrates unit cost performance over time, depicting competitors and indicating that a company can capture market share by leveraging scale.

On the right side, the focus shifts to creating new sources of advantage. This section acknowledges the challenges of displacing established competitors, but identifies discontinuities as potential opportunities. Examples of these discontinuities include innovations in products or processes, shifts in customer needs, and changes in distribution methods. The slide also notes that alterations in supply chains or government regulations can open new avenues for growth. A secondary graph suggests that by uncovering latent service needs, a company can differentiate itself from competitors, represented by units A and B, where unit costs are compared.

Overall, the slide serves as a strategic framework for executives looking to strengthen their market position. It encourages a dual approach: enhancing existing capabilities while also seeking innovative opportunities that can disrupt the status quo. This comprehensive perspective is essential for any organization aiming to thrive in competitive environments.

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Consulting Frameworks Strategy Development Chief Strategy Officer Supply Chain Innovation