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Leveraging capabilities in a disruptive environment


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My presentation on "Leveraging capabilities in a disruptive environment"

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Leveraging capabilities in a disruptive environment

  1. 1. Leveraging Capabilities in a disruptive environment Dr. Sandeep Kulshrestha
  2. 2. Some key words used in this presentation Leverage: Gaining benefit Disruption: Separation/Division into parts (Ref: Capabilities: A firm’s ability to gain competitive advantage Competencies: Specific skills and experience in the market where the firm is operating. Eg: Delivery of Pizzas by Dominoes
  3. 3. Organizational Capability focuses on internal processes and systems for meeting customer needs creates organization-specific competencies that provide competitive advantage since they are unique ensures that employee skills and efforts are directed toward achieving organizational goals and strategies
  4. 4. Traditional Sources of Competitive Advantage Economic / financial capability: able to produce good or service at lower cost than competitors Strategic / marketing capability: products or goods that differentiate a firm from its competitors, typically by “adding-value” or “product-portfolio mix.” Technological capability: products or services that customers receive are innovative, high- quality, state-of-the art, typically in how they are built or delivered.
  5. 5. Organizational Capability and value for customers 1) Responsiveness: the ability of the business to understand and meet customer needs more quickly than competitors 2) Relationships: the ability of a business to develop enduring relationship between customer and employee 3) Service quality: the ability of business to design, develop and deliver service that meets or exceeds customer expectations.
  6. 6. Disruption in the strategic process An innovation/practice that creates a new market by applying a different strategy, which ultimately overtakes an existing market. It can be technological as well as marketing linked
  7. 7. What Disruptions do Disruptions in the business environment cause economic shifts that destabilize industries, companies, and even countries (Harvard Business Review)
  8. 8. Disruption….. Opportunity or Threat
  9. 9. Disruption as a threat For firms who don’t change their strategies to cope up with disruption, it is a threat
  10. 10. Disruption as an Opportunity/LeverageFor firms which are; Adaptable Flexible Risk taking Innovation oriented Employee friendly Resourceful Technology Friendly
  11. 11. Examples of disruptive strategies Air Deccan started a Airfare of Rs 1 + Tax in the year 2005, creating disruption in the civil aviation sector Citibank was the first bank in India to offer credit cards in early eighties Maruti 800 changed the shape of the market. Premier Padmini was out of market within no time.
  12. 12. Disruptive Changes Technology Business Strategy Industry Dynamics Globalisation Outsourcing Political and Regulatory Environment
  13. 13. How to leverage from a disruptive environment Learning from the market Expanding horizons Identifying the probable disruptions Selecting new ideas Turning new ideas into opportunities Reducing risk by entering into related industry Technological as well as marketing collaborations