Blind spots in Competitive Analysis & Coping with Hyper Competition; Utilizing the new 7S’s framework Ali Sadhik Shaik [email_address]

Agenda Blind spots in Competitive Analysis -- Competitive Analysis -- Six Blind spots in CA -- Remedies Coping with Hyper Competition; Utilizing the new 7S’s framework -- McKinsey’s 7S -- New 7S framework and Key Goals -- Tradeoffs

Blind spots in Competitive Analysis -- Competitive Analysis

-- Six Blind spots in CA

-- Remedies

Coping with Hyper Competition; Utilizing the new 7S’s framework

-- McKinsey’s 7S

-- New 7S framework and Key Goals

-- Tradeoffs

Blind spots in Competitive Analysis

Competitive Analysis “ The process of identifying and understanding the competitors weaknesses and strength to formulate an effective strategy for the company.” Major points in David and article by Zahra and Chaples!

“ The process of identifying and understanding the competitors weaknesses and strength to formulate an effective strategy for the company.”

Major points in David and article by Zahra and Chaples!

Six Blind spots in Competitive Analysis

Misjudging industry boundaries Failing to clearly define the Companies Goals and Competitors Environmental Enactment – Evolutionary Changes Four Related Issues to define Industry Boundaries – Domain , Customer group, Customer function , Critical Technology

Failing to clearly define the Companies Goals and Competitors

Environmental Enactment – Evolutionary Changes

Four Related Issues to define Industry Boundaries – Domain , Customer group, Customer function , Critical Technology

Poor identification of competition Exclusive Focus On Well Known Companies & Ignoring other Organizations Faulty definition of Industry boundaries Wrong Perception KFS – Key factor to Success

Exclusive Focus On Well Known Companies & Ignoring other Organizations

Faulty definition of Industry boundaries

Wrong Perception

KFS – Key factor to Success

Overemphasis on competitor’s visible competence Main focus on visible functions & not on invisible functions of rival Difficulty in securing data on competitor’s invisible functions Augmentation & discounting principles Lack of analytical tools for estimating Solution ---- focus on idiosyncrasy

Main focus on visible functions & not on invisible functions of rival

Difficulty in securing data on competitor’s invisible functions

Augmentation & discounting principles

Lack of analytical tools for estimating

Solution ---- focus on idiosyncrasy

Overemphasis on where, not how Focus on where a firm face intensive competition & ignoring how competitor position Should focus on potential radical move Competitor’s competence in a new market Failing to limit their competitive advantage

Focus on where a firm face intensive competition & ignoring how competitor position

Should focus on potential radical move

Competitor’s competence in a new market

Failing to limit their competitive advantage

Faulty assumption about the competition Lack of accurate competitive data and Dogmatic belief system of executives. Stereotyping of competitors based on organizational culture. Military way of thinking about strategy. Poor environmental scanning

Lack of accurate competitive data and Dogmatic belief system of executives.

Stereotyping of competitors based on organizational culture.

Military way of thinking about strategy.

Poor environmental scanning

Paralysis by analysis Obsessive data collection Poor organizational structure Companies spending time in data collection, tracking competitors moves Confusion between operational and strategic data

Obsessive data collection

Poor organizational structure

Companies spending time in data collection, tracking competitors moves

Confusion between operational and strategic data

Remedies Paying attention to the competitors organization structure and culture Concentrate on your invisible functions to conduct competitive analysis Change your views of the competition Analyze competitors response and blind spots

Paying attention to the competitors organization structure and culture

Concentrate on your invisible functions to conduct competitive analysis

Change your views of the competition

Analyze competitors response and blind spots

Conclusion “ Competitive analysis is a key for successful and effective strategy formulation. Understanding and identifying flaws and blind spots in early stage and sustain a competitive advantage in today’s dynamic market place.”

“ Competitive analysis is a key for successful and effective strategy formulation.

Understanding and identifying flaws and blind spots in early stage and sustain a competitive advantage in today’s dynamic market place.”

Coping with Hyper Competition; Utilizing the new 7S’s framework

Generic 7S framework McKinsey’s 7S framework

McKinsey’s 7S framework

New 7S Framework The New 7S's are: superior stakeholder satisfaction strategic soothsaying positioning for speed positioning for surprise shifting the rules of the game signaling strategic intent simultaneous and sequential strategic thrusts

The New 7S's are:

superior stakeholder satisfaction

strategic soothsaying

positioning for speed

positioning for surprise

shifting the rules of the game

signaling strategic intent

simultaneous and sequential strategic thrusts

Key Goals of New 7S Disrupting the status quo Creating temporary advantage Seizing the initiative Sustaining the momentum

Disrupting the status quo

Creating temporary advantage

Seizing the initiative

Sustaining the momentum

New 7S Framework Vision for Disruption Superior stakeholder satisfaction Strategic soothsaying Capability for Disruption Speed Surprise Tactics for Disruption Shifting the rules of the game Signaling Simultaneous and sequential strategic thrusts

Vision for Disruption

Superior stakeholder satisfaction

Strategic soothsaying

Capability for Disruption

Speed

Surprise

Tactics for Disruption

Shifting the rules of the game

Signaling

Simultaneous and sequential strategic thrusts

Vision for Disruption Superior Stack Holder Customers are the major stack holders Keys for achieving customer satisfaction Strategic Soothsaying Understanding future evolution and market & technology Discovery Of next advantage and companies focus

Superior Stack Holder

Customers are the major stack holders

Keys for achieving customer satisfaction

Strategic Soothsaying

Understanding future evolution and market

& technology

Discovery Of next advantage and companies focus

Capability for Disruption Speed Ability to move from one advantage to other-crucial Maneuver to disrupt Surprise Lack of awareness Undermine competitor’s advantage -------Successfully disrupting the status quo & creating temporary advantage

Speed

Ability to move from one advantage to other-crucial

Maneuver to disrupt

Surprise

Lack of awareness

Undermine competitor’s advantage

-------Successfully disrupting the status quo & creating temporary advantage

Tactics for Disruption Concerned with the tactics used in delivering a company's disruptions Tactics that influence the flow of future dynamic strategic interactions among competitors Dynamic process of actions and interactions Mainly to reshaping the competitive playing field and confusing the opponent.

Concerned with the tactics used in delivering a company's disruptions

Tactics that influence the flow of future dynamic strategic interactions among competitors

Dynamic process of actions and interactions

Mainly to reshaping the competitive playing field and confusing the opponent.

Tradeoffs implied by New 7S Tradeoffs at the expense of stakeholder satisfaction Tradeoffs at the expense of future orientation/ soothsaying Tradeoffs at the expense of speed Tradeoffs at the expense of surprise

Tradeoffs at the expense of stakeholder satisfaction

Tradeoffs at the expense of future orientation/ soothsaying

Tradeoffs at the expense of speed

Tradeoffs at the expense of surprise

Conclusion “ Even by considering the tradeoffs in new 7S’s framework, still it works better in hyper competitive environment in gaining competitive advantage over the competitor by shifting the generic way of strategic thinking to new height of analyzing the situation.”

“ Even by considering the tradeoffs in new 7S’s framework, still it works better in hyper competitive environment in gaining competitive advantage over the competitor by shifting the generic way of strategic thinking to new height of analyzing the situation.”