Strategy Chessboard - Redefine the Industry (PowerPoint PPT Slide Deck)

This PPT slide presents a framework for reconfiguring the industry value chain, emphasizing the distinction between core and non-core activities within organizations. It references Michael Porter's Value Chain Analysis, which systematically organizes and evaluates activities to enhance operational efficiency. The slide highlights a trend driven by technological advancements, globalization, and deregulation, termed "horizontalization." This phenomenon encourages organizations to concentrate on their core functions while outsourcing non-core tasks to external suppliers and partners.

The strategy outlined aims to facilitate the entry of third parties into the market, fostering innovative collaboration with competitors and customers. This approach not only enhances operational flexibility, but also opens avenues for new competitive strategies. The slide also introduces the concept of Value Networks, which differ from traditional Value Chains by mapping interrelationships among activities without adhering to a strict sequential order. This distinction can provide deeper insights into how organizations interact and create value.

The mention of thought leaders such as Porter, Aurik and Willen, J. Moore, and Christensen suggests a foundation built on established theories and practices in strategic management. The slide concludes with a note on common strategies derived from Value Chain analysis, including forward and backward integration, reconfiguration, and outsourcing. This content is critical for executives looking to refine their operational strategies and adapt to evolving market dynamics. Understanding these frameworks can lead to more informed decision-making and strategic planning.

This PPT slide presents a strategic framework for redefining industries through 2 primary approaches: convergence and slicing. It begins with an overview that emphasizes the need for organizations to adapt their competitive positioning by either pursuing opportunities for industry convergence or implementing slicing strategies. The term "slicing" refers to the process of breaking down an industry into its fundamental components or natural verticals.

The content outlines how industries are defined by their offerings, the companies involved, and the resources they utilize. It notes that these definitions are not static; they evolve over time due to various factors. According to Nils Stieglitz, industry convergence can arise from several catalysts, including new technologies, the introduction of new products, or the emergence of substitute or complementary products. The slide highlights that when convergence occurs, organizations must reconfigure their capabilities to align with the new industry dynamics.

The concept of slicing is also discussed, indicating that industries can be segmented along multiple dimensions. This includes separating products to create new verticals, breaking up the industry value chain, and dismantling barriers to entry. These actions can lead to significant shifts in market structure and competitive dynamics.

The slide concludes with a cautionary note that actions taken by industry leaders in this context will likely provoke similar responses from competitors, suggesting a need for vigilance and strategic foresight. Overall, the framework encourages executives to think critically about how to navigate industry changes effectively.

This PPT slide presents a framework for strategic decision-making, specifically focusing on the "Redefine the Industry" quadrant within the broader context of the Strategy Chessboard. This model categorizes different strategic situations that companies may encounter, highlighting the importance of selecting the right approach based on industry evolution patterns.

The "Redefine the Industry" quadrant is characterized by its potential to significantly alter the existing market dynamics. Companies are encouraged to consider this strategy when they have the opportunity to innovate, either by changing their business model or through mergers and acquisitions both within and outside their current industry. This suggests a proactive stance towards industry transformation, emphasizing the need for agility and foresight.

Adjacent quadrants are also briefly described, providing context for the "Redefine the Industry" strategy. For instance, "Reinvent the Industry" focuses on creativity and the willingness to create novel solutions, while "Position and Conquer" emphasizes finding a favorable market position. "Maintain Strategic Flexibility" highlights the importance of being adaptable to various outcomes, which is crucial in a rapidly changing environment.

The slide underscores that a high-level analysis is essential for determining the most appropriate strategic quadrant. This analysis should be tailored to the organization's unique situation, ensuring that the chosen strategy aligns with its goals and market conditions. Overall, the content encourages executives to think critically about their strategic choices and the implications of their actions in a competitive landscape.