Blind Spots And 7s Framework


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Blind Spots And 7s Framework

  1. 1. Blind spots in Competitive Analysis & Coping with Hyper Competition; Utilizing the new 7S’s framework Ali Sadhik Shaik [email_address]
  2. 2. Agenda <ul><li>Blind spots in Competitive Analysis -- Competitive Analysis </li></ul><ul><ul><ul><li>-- Six Blind spots in CA </li></ul></ul></ul><ul><ul><ul><li>-- Remedies </li></ul></ul></ul><ul><li>Coping with Hyper Competition; Utilizing the new 7S’s framework </li></ul><ul><li>-- McKinsey’s 7S </li></ul><ul><li>-- New 7S framework and Key Goals </li></ul><ul><li>-- Tradeoffs </li></ul>
  3. 3. Blind spots in Competitive Analysis
  4. 4. Competitive Analysis <ul><li>“ The process of identifying and understanding the competitors weaknesses and strength to formulate an effective strategy for the company.” </li></ul><ul><li>Major points in David and article by Zahra and Chaples! </li></ul>
  5. 5. Six Blind spots in Competitive Analysis
  6. 6. Misjudging industry boundaries <ul><li>Failing to clearly define the Companies Goals and Competitors </li></ul><ul><li>Environmental Enactment – Evolutionary Changes </li></ul><ul><li>Four Related Issues to define Industry Boundaries – Domain , Customer group, Customer function , Critical Technology </li></ul>
  7. 7. Poor identification of competition <ul><li>Exclusive Focus On Well Known Companies & Ignoring other Organizations </li></ul><ul><li>Faulty definition of Industry boundaries </li></ul><ul><li>Wrong Perception </li></ul><ul><li>KFS – Key factor to Success </li></ul>
  8. 8. Overemphasis on competitor’s visible competence <ul><li>Main focus on visible functions & not on invisible functions of rival </li></ul><ul><li>Difficulty in securing data on competitor’s invisible functions </li></ul><ul><li>Augmentation & discounting principles </li></ul><ul><li>Lack of analytical tools for estimating </li></ul><ul><li>Solution ---- focus on idiosyncrasy </li></ul>
  9. 9. Overemphasis on where, not how <ul><li>Focus on where a firm face intensive competition & ignoring how competitor position </li></ul><ul><li>Should focus on potential radical move </li></ul><ul><li>Competitor’s competence in a new market </li></ul><ul><li>Failing to limit their competitive advantage </li></ul>
  10. 10. Faulty assumption about the competition <ul><li>Lack of accurate competitive data and Dogmatic belief system of executives. </li></ul><ul><li>Stereotyping of competitors based on organizational culture. </li></ul><ul><li>Military way of thinking about strategy. </li></ul><ul><li>Poor environmental scanning </li></ul>
  11. 11. Paralysis by analysis <ul><li>Obsessive data collection </li></ul><ul><li>Poor organizational structure </li></ul><ul><li>Companies spending time in data collection, tracking competitors moves </li></ul><ul><li>Confusion between operational and strategic data </li></ul>
  12. 12. Remedies <ul><li>Paying attention to the competitors organization structure and culture </li></ul><ul><li>Concentrate on your invisible functions to conduct competitive analysis </li></ul><ul><li>Change your views of the competition </li></ul><ul><li>Analyze competitors response and blind spots </li></ul>
  13. 13. Conclusion <ul><li>“ Competitive analysis is a key for successful and effective strategy formulation. </li></ul><ul><li>Understanding and identifying flaws and blind spots in early stage and sustain a competitive advantage in today’s dynamic market place.” </li></ul>
  14. 14. Coping with Hyper Competition; Utilizing the new 7S’s framework
  15. 15. Generic 7S framework <ul><li>McKinsey’s 7S framework </li></ul>
  16. 16. New 7S Framework <ul><li>The New 7S's are: </li></ul><ul><ul><li>superior stakeholder satisfaction </li></ul></ul><ul><ul><li>strategic soothsaying </li></ul></ul><ul><ul><li>positioning for speed </li></ul></ul><ul><ul><li>positioning for surprise </li></ul></ul><ul><ul><li>shifting the rules of the game </li></ul></ul><ul><ul><li>signaling strategic intent </li></ul></ul><ul><ul><li>simultaneous and sequential strategic thrusts </li></ul></ul>
  17. 17. Key Goals of New 7S <ul><li>Disrupting the status quo </li></ul><ul><li>Creating temporary advantage </li></ul><ul><li>Seizing the initiative </li></ul><ul><li>Sustaining the momentum </li></ul>
  18. 18. New 7S Framework <ul><li>Vision for Disruption </li></ul><ul><li>Superior stakeholder satisfaction </li></ul><ul><ul><li>Strategic soothsaying </li></ul></ul><ul><li>Capability for Disruption </li></ul><ul><li>Speed </li></ul><ul><li>Surprise </li></ul><ul><li>Tactics for Disruption </li></ul><ul><ul><ul><li>Shifting the rules of the game </li></ul></ul></ul><ul><ul><ul><li>Signaling </li></ul></ul></ul><ul><ul><ul><li>Simultaneous and sequential strategic thrusts </li></ul></ul></ul>
  19. 19. Vision for Disruption <ul><li>Superior Stack Holder </li></ul><ul><li>Customers are the major stack holders </li></ul><ul><li>Keys for achieving customer satisfaction </li></ul><ul><li>Strategic Soothsaying </li></ul><ul><li>Understanding future evolution and market </li></ul><ul><li>& technology </li></ul><ul><li>Discovery Of next advantage and companies focus </li></ul>
  20. 20. Capability for Disruption <ul><li>Speed </li></ul><ul><li>Ability to move from one advantage to other-crucial </li></ul><ul><li>Maneuver to disrupt </li></ul><ul><li>Surprise </li></ul><ul><li>Lack of awareness </li></ul><ul><li>Undermine competitor’s advantage </li></ul><ul><li>-------Successfully disrupting the status quo & creating temporary advantage </li></ul>
  21. 21. Tactics for Disruption <ul><li>Concerned with the tactics used in delivering a company's disruptions </li></ul><ul><li>Tactics that influence the flow of future dynamic strategic interactions among competitors </li></ul><ul><li>Dynamic process of actions and interactions </li></ul><ul><li>Mainly to reshaping the competitive playing field and confusing the opponent. </li></ul>
  22. 22. Tradeoffs implied by New 7S <ul><li>Tradeoffs at the expense of stakeholder satisfaction </li></ul><ul><li>Tradeoffs at the expense of future orientation/ soothsaying </li></ul><ul><li>Tradeoffs at the expense of speed </li></ul><ul><li>Tradeoffs at the expense of surprise </li></ul>
  23. 23. Conclusion <ul><li>“ 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.” </li></ul>