TPGS Chapter 1


Why 

Where are we now?
Where do we want to go from here?
How are we going to get there?
Leads into strategy  Where are we now?
 Where do want to go from here?
 How are we going to do to get there?

Strategy is all about

 How to attract and please customer?
 How to compete against rivals?
 How to position the company in marketplace and capitalize on How
attractive opportunities to grow the business?
 How best to respond to changing economic and market
conditions?
 How to manage each functional piece of business?
 How to achieve the company’s performance target?
 A company’s strategy consist of the competitive moves and business approaches
management has developed to attract and please customers, compete successfully,
capitalize on opportunities to grow the business, respond to changing market
conditions, conduct operations, and achieve performance objectives

To gain sales and

market share
To respond to
To upgrade and build
changing market
important resource and
condition
capabilities

To manage key The actions and

approaches that To enter new
activities within
make up a geographic of
company (internal
company’s product market or
R&D, Production,
business strategy exit existing one
Sales, etc.)

To Strengthening To capture emerging

competitiveness market opportunities
and defend against
To Strengthening threats
market standing
 A company achieves sustainable competitive advantage
when an attractively large number of buyers develop a
durable preference for its products or services over
offering of competitors, despite the efforts of competitors
to overcome or erode its advantage

A low-cost provider strategy

A broad differentiation strategy

A focused low-cost strategy

A focused differentiation strategy

A best-cost provider strategy

 Changing circumstances and ongoing management efforts to improve
the strategy cause a company’s strategy to evolve over time – a
condition that makes the task of crafting strategy a work in progress,
not a onetime event

Realized strategy
Opportunity

Abandoned Strategy

Timeline

Proactive moves to improve the company’s financial performance and secured competitive edge
Adaptive reactions to unanticipated development and fresh market condition
 Strategy is about action to improve, enter or
even exit from current situation that measured
against benchmark and competitive advantage
for sustainability purpose
Opportunity

2
3
1
Current
run rate

Timeline
 A company’s business model sets forth how its strategy and operating approaches
will create value for customers, while at the same time generate ample revenues to
cover costs and realize a profit. The two elements of a company’s business model are
its (1) customer value proposition and (2) its profit formula
Strategy

Strategy Strategy

Customer Company’s
buying Objective
perspectives perspectives
Strategy

Business Model

Operating
People Technology Framework
 A winning strategy must fit the company’s external and internal
situation, build sustainable competitive advantage, and improve
company performance

How well does the strategy fit the company situation

Is the strategy helping the company achieve a

sustainable competitive advantage?

Is the strategy producing good

company performance