We correlate the strategic option with market dynamic and your company evolution in order to create and maintain competitive advantages on a long-run.
The real competitive advantage of a company originates in the local environment in which the firm is based, in uniqueness and scarceness of resources and capabilities that company can access and in a clear understanding of the sources of economies of scale and scope.
The environments have become increasingly diverse and complex, so when executives formulate and execute strategies they must understand, compete across and adapt to, a much broader range of strategic environments, each requiring distinct approaches and capabilities. Pursuing a correct match between strategic style and environment competitive companies are transitioning from relying on a single “classical” approach to strategy and moving towards a more tailored approach to strategy and execution.
Before expressing any strategy, we assist companies to identify specific sources of economies of scale and scope and to measure (where is possible) their magnitude and to analyze the attributes in the home market that promote or impede company’s ability to achieve competitive advantage:
- We identify the real sources of company development (scale, scope, learning);
- We measure the magnitude of these sources (where possible);
- We analyze the specific features of the local market that facilitate or prevent the obtaining of competitive advantage;
- We develop mechanisms to protect the competitive advantage;
- We rethink the value proposition by combining strategic options (classic, adaptive, viewing, reconstruction).
There is no list of characteristics that lead automatic to success because customers experiences are different but today strategy is more necessary than ever.
Success depends always on the managers who must match market economic principles with conditions and opportunities they face. Today companies must create not only positive value but also more value by offering a higher consumer surplus than competitors.
For those companies seeking competitive advantage through business model innovation we support executives to make effective choices in designing the path to growth, through the following tactics:
- Reinventing company’s customer-value proposition and realign its operations to profitably deliver on this new proposition.
- Exploring adjacent businesses or markets, in some cases exiting their core business entirely. We build an innovation engine to persistently drive experimentation to find a successful “new core” space with the right business model.
- Developing abilities to continually evolve the competitive edge or advantage of the business to drive growth.
- Understanding the company’s competitive advantage and placing careful bets on novel applications of that advantage in order to succeed in new markets.
Once achieved a competitive advantage must be also protected. We focus on the company’s dynamic capabilities to maintain the bases of its competitive advantage developing an isolating mechanism to prevent competitors from duplicating or neutralizing the source of the company’s competitive advantage.
The recent researches show that company engagement with its stakeholders is now a massive new factor in driving corporate performance and corporate sustainability, we would say that this is the new frontier of competitive advantage
Companies seek to create value through broad coverage strategies or focus strategies but beyond of a certain size bigger is no longer better and may even be worse due to diseconomies of scale (labor costs, firm size, dilution of specialized resources – lack of the skill necessary to translate their success to new conditions, bureaucracy).
Big doesn’t sound like was before…sometimes big is worst.