Strategic Framework: Core Competencies and Product Hierarchy PPT


This PPT slide, part of the 69-slide Corporate Strategy Primer PowerPoint presentation, presents a structured approach to understanding core competencies and their relationship to business units and end products. It outlines 3 distinct levels of competition, each with specific goals that guide strategic focus.

At the first level, the emphasis is on end products. The goal here is to establish a leadership position in global brand share, which is critical for gaining market traction. This level serves as the foundation for the subsequent levels, highlighting the importance of visibility and recognition in product markets.

The second level shifts focus to core products. The objective is to maximize manufacturing share in these core offerings, catering to both internal and external customers. This approach aims to leverage economies of scale and scope, suggesting that efficiency in production can lead to enhanced market presence and profitability.

The third level addresses core competencies. The goal is to achieve world leadership in the design and development of specific product functionalities. This level underscores the necessity of innovation and expertise, indicating that true differentiation comes from deep capabilities that can be translated into superior products.

The slide also emphasizes that core products are tangible manifestations of core competencies. This connection is crucial for understanding how competencies translate into value for end products. The visual structure of the slide reinforces the hierarchical relationship between these elements, making it clear that effective strategy must consider all 3 levels to drive success.

Overall, this framework provides a comprehensive view of how competencies can be strategically aligned with business goals to enhance market positioning and operational effectiveness.




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Growth Strategy Strategy Development Core Competencies Corporate Strategy Leadership Manufacturing Innovation Production Positioning

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