The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
Assessing Your Strategy
1. WHAT IS YOUR
STRATEGY?
And how well do you leverage the six drivers of strategic value?
BRETT PINEGAR
achieve extraordinary results
www.brettpinegar.com
2. A strategy or business model* is a
critical part of your organization’s
roadmap for success.
*I consider strategies and business models to be the same thing.
3. There are four key parts
to your roadmap.
Mission
Values / Culture
Strategy
Action Plans
5. Your strategy describes how your
organization achieves its mission
by creating, delivering, and
monetizing value.
6. A great strategy focuses on the
sweet spot where your organization
can maximize its value.
7. The Strategic Sweet Spot
CONTEXT
COMPETITORS CUSTOMERS
value needs & wants
SWEET
SPOT
ORGANIZATION
value
*Graphic adapted from David Collis and Michael Rukstad’s “Can You Say What Your Strategy Is?” in April 2008 issue of the Harvard Business Review
8. There are six key drivers of
strategic value
Team Offerings Customers
Capabilities Economics Connections
*Drivers of strategic value are significant adaptation of Business Model Canvas developed by Alexander Osterwalder
9. Team
Team Culture describes the most important aspects of how a
team interacts and communicates to create, deliver, and
capture value. Culture is influenced by an organization’s
structure, systems, along with the collective skills, habits and
Culture
beliefs of its people.
How does your team culture help you to:
▪ Create and deliver your offering to your customers?
Skills
▪ Build and maintain key relationships?
▪ Take advantage of opportunities that exist in your
marketplace? Adjacent marketplaces?
10. Team
Team Skills describes the collective skills, talents and
abilities of your people that are most essential to creating
value.
Culture How do the skills of your team help you to:
▪ Create the culture you need?
▪ Build and maintain key relationships?
Skills ▪ Take advantage of opportunities that exist in your
marketplace?
▪ Make decisions and act on your most important
priorities?
11. Capabilities
Activities describes the most important and unique ways
your organization does things to create, deliver, and capture
value. Some activities may be performed by partners. Key
activities may be production oriented processes, they be
Activities
associated with customer interaction, research and
innovation, or they may be back office related.
What unique activities does your team excel at to:
Resources ▪ Create and deliver your offering to your customers?
▪ Build and maintain customer relationships?
▪ Take advantage of opportunities that exist in your
marketplace?
12. Capabilities
Resources describes the most important assets your team
leverages to create, deliver, and capture value. Some resources
may be accessed through partners. Key types of resources
include physical, intellectual, and financial.
Activities
What critical resources do you rely on to:
▪ Create and deliver your offering to your customers?
Resources
▪ Build and maintain key relationships?
▪ Take advantage of opportunities that exist in your
marketplace?
13. Offerings
Offering Features describes the features or attributes of your
offering that create value. Features represents what a
customer is buying, not why they are buying it.
Features What features does your offering have to:
▪ Create value for your customers?
▪ Make it difficult for other alternatives / competitors to
win?
Benefits
▪ Leverage your unique capabilities, relationships, and
opportunities?
14. Offerings
Offering Benefits describes the value your offering creates.
Benefits articulates the reason why a customer is buying, not
what they are buying. In other words, this is your offering’s
value proposition.
Features
What unique benefits does your offering have to:
▪ Create value for your customers?
Benefits
▪ Make it difficult for other alternatives / competitors to
win?
▪ Leverage your unique capabilities, relationships, and
opportunities?
15. Economics
Revenue Model describes the way your organization
monetizes its value – from a traditional sale to a SaaS or
subscription model, from advertising to freemium, from list
Revenue price to heavy promotion and discounting.
Model
What revenue model enables you to effectively:
▪ Monetize value with your customers?
Cost
▪ Create long-lasting customer relationships that make it
Structure difficult for other alternatives / competitors to win?
▪ Leverage your unique capabilities, relationships, and
opportunities?
16. Economics
Cost Structure describes how your investment and
operating expense model help you create value. You may
leverage a variable cost structure or economies of scale to
Revenue create value. Some choose a value driven vs. cost driven.
Model
What cost structure does your organization leverage to:
▪ Create value for your customers?
Cost
▪ Make it difficult for other alternatives / competitors to
Structure win?
▪ Leverage your capabilities, relationships, and
opportunities?
17. Customers
Customer Attributes describes the identifiable attributes of
segments of customers that your aim to reach and serve with
your offerings. Typically, you will serve more than one
Attributes customer segment, each having a unique set of attributes.
Which customer segments represent:
▪ Your most important customers?
Needs and
▪ Which customers most willing to recommend your
Wants offering to others?
▪ Your most profitable customers?
18. Customers
Customer Needs and Wants describes the fundamental
desires and requirements of your most important customer
segments.
Attributes
What needs and wants do your customers have and how does
this help your organization:
▪ Build profitable and lasting relationships with them?
Needs and
▪ Enable you to grow your customer base?
Wants
▪ Leverage your capabilities, relationships, and
opportunities?
19. Connections
Customer Relationships describes the type of ongoing
relationship with customers and the way that type of
relationship creates value. Options range from a one-time sale
Customer to membership in a community, from high touch to low
Relationships
touch customer communication.
What kind of relationship do you have with customers that
helps you:
▪ Build value for you and them?
Channels
▪ Fit your customer’s economic model?
▪ Distinguishes you from other alternatives /
competitors?
20. Connections
Channels describes the specific channels you use to find,
reach, sell, deliver, and support your key customer segments.
Channels may include a direct sales force or third-party
Customer brokers, outside partners to support marketing or a capable
Relationships
internal team.
What channels does your organization use to create value and
how do these channels:
▪ Fit your customers buying process?
Channels
▪ Demonstrate your value to customers?
▪ Distinguish you from other alternatives / competitors?
21. WHAT GRADE WOULD YOU GIVE
YOUR STRATEGY?
And how well does your strategy leverage the
six drivers of strategic value?
BRETT PINEGAR
achieve extraordinary results
www.brettpinegar.com