1. HOW TO CHANGE
Your capabilities is your DNA that makes you different from others.
The competitive strategy framework works on the assumption that an organization is most likely to excel at what it is already good i.e. Its value disciplines, the ability to react adequately and timely to external changes and the capability of the organization to purposefully adapt the organization’s resource base. By this, you can make an honest assessment about whether your business strategy aligns to your stated ‘competitive advantage’.
2. HOW TO INNOVATE
In the 21st century no competitive strategy can be formulated or thought of without an innovation perspective.
Companies need to have an innovation strategy. Without placing it in context, different parts of an organization can easily wind up pursuing conflicting priorities — even if there’s a clear business strategy. The innovation strategy defines the main purpose of innovation and direction for the innovation execution: Winning larger market share (expansion), exploiting existing resources in a more efficient way in existing markets (exploitation) a/o investing into emerging and future markets (exploration). Proper balancing between exploration and exploitation depend on environmental conditions (dynamism, competitiveness) and desired performance measure (profits, market value).
3. HOW TO GROW
Every innovation entails change, but not every change involves innovation.
To push your business forward and make it bigger you need a clearly defined market growth strategy, aimed at creating shareholder value or possible shared value creation. Through improvements or renewals on existing business processes and practices to sustainable value innovation on novel offerings. Some broad growth strategies are product development, market development and diversification. This can be done through co-operation (M&A, external partnerships etc.) or collaboration (co-creation, crowd-sourcing etc.).