900 Pound Gorilla

Copyright ©1997 by Kelly Lefkowitz

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The Strategy TechniqueBeating the 900 Pound Gorilla

Kelly Lefkowitz, PresidentKelly Lefkowitz, President

Strat/AssistStrat/Assist12610 Mitchell AvenueSuite EightLos Angeles CA 90066310.980.6641 [email protected]


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Play Differently


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Three Faces of Corporate Strategy

Product Leadership Operational Excellence Customer Focus (Intimacy)


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Product Leadership

Innovation New Product Introduction Product Design Brand/Reputation

SPEED!


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Product Leadership Examples

Intel Proctor & Gamble Sony Nike Ralph Lauren Amazon.Com


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Operational Excellence

Low Prices High Quality Hassle Free Service

SIMPLICITY!


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Operational Excellence Examples

Wal-Mart Federal Express Gateway 2000 Saturn Limited Southwest Airlines


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Customer Focus (Intimacy)

Best Product + Best Price = Best Value Live the Customers Problems Close Relationships Help Companies to

Recognize Customer Needs

FLEXIBILITY!


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Customer Focused Companies

Bennetton Chapperal Steel Cheetah Software Systems Ryder Logistics


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Total Focus on One Strategy?

NO! NO! NO! You Have to Maintain a Competitive

Threshold in The Other Areas Achieve Outstanding Performance in

One Area While Remaining Competitive in the Other Two.


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The Strategic Technique

Product OperatingEfficiency

CustomerIntimacy

Product OperatingEfficiency

ProductCustomerIntimacy

OperatingEfficiency

CustomerIntimacy


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When Up Against The Market Leader Survive - if a large company is committed to

providing unmatched value of a particular kind, to one of the three value disciplines, get out of the way.

Thrive - look at the natural advantages of big companies to see where your leverage points are for each of the value disciplines


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Survival Strategy

If a Large Company is Well Managed it Will Get What it Wants, but it Can’t Excel at All Three Values.

Focus and Innovate in a Different Type of Value– Minutemen Vs. British Army

– Walmart Vs. Sears

– CPA Vs. Big 6

– Ben & Jerry’s Vs. Baskin Robbins


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Using the Strategy Technique

To Analyze Your Customers/Segment Your Markets

To Position Yourself Against Competition To Provide Focus to Your Employees/

Co-workers


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Analyze Your Customers/ Segment Your Market A Brilliant Sales Tool Sales Force Intuition Focus On Your Target Market


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Position Against Your Competition How Do They Play The Downside of Each Strategy Go for the Soft Spot


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Focus Your Employees

Simple to Understand the Strategy Training Costs Reduced Decisions Are Easier to Make


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Your Customer’s Triangle

Primary Strategy

Secondary Strategy

Tertiary Strategy


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If a Customer Is Product Focused

Operating Efficiency Helps– Low Cost Components

– Consistent Quality

Customer Flexibility Helps– Outsource Services (Black Box Programs)

– J-I-T

Product Focused Hurts– Too Much Value Added Cost in Components

– Designs May Change Too Often


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If a Customer is Operating Efficient Product Focused Helps

– Assure Components are of High Quality

Operating Efficient Helps– Keeping Cost Low

Customer Flexibility Helps– Outsource Activities that Would Prevent

Efficiency


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If A Customer is Flexibility Focused Operating Efficiency Helps

– Consistency of Product & Service

Flexibility Helps– J-I-T– Strategic Alliance


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Your Competition’s Triangle

Primary Strategy

Secondary Strategy

Tertiary Strategy


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Your Strategy Triangle

Primary Strategy

Secondary Strategy

Tertiary Strategy


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Beat the 900 Pound Gorilla!!!

900 Pound Gorilla

Documents

customer needsflexibility

strategy techniqueto

strategy techniquebeating

unmatched value

large company

makeyour customers triangleif

tproduct focused hurtstoo

best valuelive