Competitive Advantage An introduction by David Elliott
Why is it important? <ul><li>Strategy needs to based on organisational strengths in a way that fits the organisation and a...
Strategy/Implementation. Good Poor Good Poor Strategy Implementation Long term success Short term gain, Long term failure ...
Choice of strategy Focus  Cost Differentiation Middle of the  road Adapted from Porter (1980)
Choice of strategy <ul><li>Choose a generic strategy and stick to it. </li></ul><ul><li>Select an approach that allows the...
Case Study <ul><li>Sainsbury’s. </li></ul>
Porter’s 5 forces Rivalry between firms Threat of  substitutes Barriers to entry Supplier  Power Buyer  Power
The Danger zone. <ul><li>Most SMEs diversify too early. </li></ul><ul><li>Stick to the knitting. </li></ul><ul><li>What is...
Ansoff matrix. Existing New Existing New Product/Service Market 1. Consolidation 2. Penetration  3. Withdrawal Product ext...
Case study <ul><li>Seven Seas. </li></ul>
Barriers to growth. <ul><li>Studies of many SMEs by Cranfield University </li></ul><ul><li>have revealed the following bar...
Exercise <ul><li>Strategists give their managers the tools to do the job and let them get on running today’s business whil...
Thank you. <ul><li>Any Questions? </li></ul>
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Competitive Advantage

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Some thoughts on creating an advantage.

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Competitive Advantage

  1. 1. Competitive Advantage An introduction by David Elliott
  2. 2. Why is it important? <ul><li>Strategy needs to based on organisational strengths in a way that fits the organisation and aligns its competitive advantage with the opportunity. </li></ul><ul><li>No strategy no long term success. </li></ul>
  3. 3. Strategy/Implementation. Good Poor Good Poor Strategy Implementation Long term success Short term gain, Long term failure Short term failure, Long term success Failure
  4. 4. Choice of strategy Focus Cost Differentiation Middle of the road Adapted from Porter (1980)
  5. 5. Choice of strategy <ul><li>Choose a generic strategy and stick to it. </li></ul><ul><li>Select an approach that allows the Company to maximise its strengths relative to its competitors. </li></ul><ul><li>Ensure it has macro and micro congruency. </li></ul><ul><li>Even the mighty get this wrong. </li></ul>
  6. 6. Case Study <ul><li>Sainsbury’s. </li></ul>
  7. 7. Porter’s 5 forces Rivalry between firms Threat of substitutes Barriers to entry Supplier Power Buyer Power
  8. 8. The Danger zone. <ul><li>Most SMEs diversify too early. </li></ul><ul><li>Stick to the knitting. </li></ul><ul><li>What is meant here? </li></ul><ul><li>Some theory followed by a case study. </li></ul>
  9. 9. Ansoff matrix. Existing New Existing New Product/Service Market 1. Consolidation 2. Penetration 3. Withdrawal Product extension Market extension Idiot box
  10. 10. Case study <ul><li>Seven Seas. </li></ul>
  11. 11. Barriers to growth. <ul><li>Studies of many SMEs by Cranfield University </li></ul><ul><li>have revealed the following barriers to growth-: </li></ul><ul><li>Lack of planning </li></ul><ul><li>Muddled marketing – those who have a differentiated approach, develop a superior reputation and a better understanding of their customer needs are those that succeed. </li></ul><ul><li>Mismanaged change. </li></ul><ul><li>The wrong objectives – profit sanity. </li></ul><ul><li>Meddling and misspent time. </li></ul><ul><li>No financial strategy and poor controls. </li></ul>
  12. 12. Exercise <ul><li>Strategists give their managers the tools to do the job and let them get on running today’s business whilst they plan for the future. </li></ul><ul><li>Less than 5% of entrepreneurs have achieved the status of strategist. </li></ul><ul><li>Where are you on this path? </li></ul>
  13. 13. Thank you. <ul><li>Any Questions? </li></ul>

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