Continuity is the last of the five test of sound strategy which are • A unique value proposition compared to competitors • A different, tailored value chain • Clear tradeoffs, and choosing what not to do • Activities that fit together and reinforce each other • Continuity of strategy with continual improvement in Continuity is a key to enable company to execute successful strategy ความต่อเนื่องคือหัวใจของการดำเนินกลยุทธ์ในการแข่งขัน

1. Chapter 7: Continuity
By Araya T. and Nujjaree W.

2. Why is continuity Essential?
A unique value proposition compared
to competitors
A distinctive value chain
Making clear tradeoffs and
different from rivals
Fit across the value chain
Continuity overtime
Strategic continuity is essential to creating and sustaining
“competitive advantage”

3. • It builds a company’s brand, its reputation,
and its customer relationships
• Example: In-N-Out Burger
1. Continuity reinforces a
company’s identity
“Through the times have changed, you’ll find today
exactly what customer enjoyed since 1948”
Old - fashioned menu and Old - fashioned value (Treat employees like family)

4. • Suppliers, channels, and other outside
parties
• Example: Nestle’
2. Continuity helps
stakeholders contribute to a
company’s competitive
advantage
• Nestle’ developed a thriving supply
base of local farmers for it’s milk in
India
• Starting in the 1960s with just 180
farmers
• Nestle’ provided technical assistance,
training, and supplies to the farmers
• Now the number of farmers working
with Nestle’ has grown to over 75,000.

5. • Allows an organization to build unique
capabilities and skills tailored to its
strategy
Fosters improvements in
individual activities and fit
across activities
• Unique style of service
• Employees have skills and attitudes that fit the company’s strategy
• It’s becoming company’s culture and hard for rivals to match

6. What Does Continuity Involve?
The continuity does not mean that an organization should stand still
Stability in core value proposition – successful company rarely reinvent
themselves they reinventing their methods
 Telegraph and culminating
 Rapid information about financial market
 Beginning in small-town
 Everyday low prices

7. When Does strategy need to change?
1. as customer need change ,a company‘s core value proposition may
simply become obsolete.
2. Innovation of all sorts can serve to invalidate the essential trade-offs
on which a strategy relies.
3. A technological or managerial breakthrough can completely trump a
company’s existing value proposition.

8. What Must Change?
• You must stay on the
frontier of OE
In the mid 1990s BMW came
behind other automaker on
investment in best practice.
So BMW set out new
production line to cut the time
in half.
- OE improvement
- running some activities in
parallel
- Revise design process using
CAS (computer- Aided
Styling)
CAS

9. What Must Change?
• You must change when there are ways to extend your value proposition
Netflix
- At first distribute DVDs by mail.
- They searching for an internet based solution “Streaming” is the answer
- “the cost” round-trip for a mailed DVD was about a dollar versus just
five cent to stream.
$ 1 $ 0.05

10. Strategies Emerge and Strategies Evolve
• Southwest is the great
example pass all the test of
strategy. They have achieved
what most managers can only
dream of .
Continuity at Southwest airline
Continuity of strategy at Southwest
airline is reflected in its sustained
competitive advantage.
Over the 30 years period , Southwest
airline average ROIC was 11.4 % versus
the industry’s 3.1%

11. Strategies Emerge and Strategies Evolve
Porter is suggesting that anyone can come along and
create a Southwest in 3 easy steps
1. Do some analysis (Five Force, Value Chain, Relative Cost and Value)
2. Draw an industry map, showing how current player positioned
3. Choose an unoccupied position.

12. Strategies Emerge and Strategies Evolve
Dell - Early, core strategy is selling direct. (
to avoid the reseller’s margin) and
building to order using purchased
components (avoid the cost of internal
technology development & component
manufacturing)
- Time Change, the Strategy also
Change.
- Dell found that the value proposition
was more compelling with larger
corporate customer with in-house IT-Department
than with smaller
purchasers.
- That was the heart of Dell’s cost
advantage.

13. Strategies Emerge and Strategies Evolve
Porter’s key points is
- It is rarely possible to figure out everything
that will matter at the very start.
- Change is inevitable, and the capacity to
change is critically important.
- The continuity of direction makes effective
change more likely.

14. Thank you