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Competitive Advantage Cycle

No Competitive Advantage can last forever. It is always transient. That is why, sooner or later, the committed quest for designing and building a Next Transient Competitive Advantage becomes of paramount importance for any business wishing to achieve or sustain its success in the future. The Competitive Advantage Cycle describes the evolution of companies and business lines from their Current Competitive Advantage to their Next & Future ones. When we move along the Competitive Advantage Cycle, our Strategic Focus is shifting, closing in sequence the Strategic Coherence Gaps for the Consecutive Strategic Destinations that we are aiming to reach. Access the PDF version of this document at: http://issuu.com/mihaiionescu7/docs/competitive_advantage_cycle and the associated video at: https://youtu.be/CMfT_Q89I-E

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Competitive Advantage Cycle

  1. 1. FAMILIAR STRATEGIC CHOICES & CAPABILITIES UNFAMILIAR STRATEGIC CHOICES & CAPABILITIES UNCERTAIN STRATEGIC CHOICES & CAPABILITIES Horizon 1 CONSOLIDATING THE CURRENT COMPETITIVE ADVANTAGE Horizon 2 DEVELOPING THE NEXT COMPETITIVE ADVANTAGE Horizon 3 EXPLORING OPTIONS FOR FUTURE COMPETITIVE ADVANTAGES McKinsey’s frameworks “3 Horizons” and “Portfolio of Initiatives” describe the evolution of companies and business lines from their Current Competitive Advantage to their Next & Future ones. TIME PROFIT & VALUE © 2015 - Strategic Systems Consulting
  2. 2. As we consolidate our Current Competitive Advantage, we focus on closing the Strategic Coherence Gaps between our Existing Capabilities and those Required to support our Strategic Choices. STRATEGIC HORIZON TODAY STRATEGIC DESTINATION TIME PROFIT & VALUE Current COMPETITIVE ADVANTAGE © 2015 - Strategic Systems Consulting
  3. 3. Out Current Competitive Advantage is a Transient one. We have to enlarge our Strategic Horizon and define a New Transient Competitive Advantage and a New Strategic Destination. TODAY STRATEGIC DESTINATION 1 TIME PROFIT & VALUE New COMPETITIVE ADVANTAGE STRATEGIC HORIZON STRATEGIC DESTINATION 2 TODAY STRATEGIC DESTINATION Current COMPETITIVE ADVANTAGE © 2015 - Strategic Systems Consulting
  4. 4. TODAY STRATEGIC DESTINATION 1 TIME PROFIT & VALUE STRATEGIC DESTINATION 2 TODAY STRATEGIC HORIZON STRATEGIC DESTINATION Because our Strategic Focus has shifted, we have to reallocate our resources to close the New Strategic Coherence Gaps and to build or adapt the Capabilities that must support our New Strategic Choices. STRATEGIC HORIZON New COMPETITIVE ADVANTAGE Current COMPETITIVE ADVANTAGE © 2015 - Strategic Systems Consulting
  5. 5. Current COMPETITIVE ADVANTAGE Current COMPETITIVE ADVANTAGE TIME PROFIT & VALUE STRATEGIC DESTINATION As we consolidate our New Competitive Advantage, we have to extend our Strategic Horizon even more, exploring our possible Future Strategic Destinations. STRATEGIC HORIZON TODAY POSSIBLE FUTURE STRATEGIC DESTINATIONS EXPLORATORY STRATEGIC HORIZON New COMPETITIVE ADVANTAGE © 2015 - Strategic Systems Consulting
  6. 6. When we move along the Competitive Advantage Cycle, our Strategic Focus is shifting, closing in sequence the Strategic Coherence Gaps for the Consecutive Strategic Destinations that we are aiming to reach. A B DC TIME STRATEGIC COHERENCE GAPS TIME STRATEGIC FOCUS (RESOURCES) TIME PROFIT & VALUE STRATEGIC DESTINATION 2 POSSIBLE FUTURE STRATEGIC DESTINATIONS STRATEGIC DESTINATION 1 Current COMPETITIVE ADVANTAGE New COMPETITIVE ADVANTAGE A B C D © 2015 - Strategic Systems Consulting

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