1. HOW TO CHANGE
Your capabilities is your DNA that makes you different from others.
To succeed in the marketplace, companies must embrace a competitive strategy. Authors Michael Treacy and Fred Wiersma describe three generic competitive strategies, or value disciplines: operational excellence, customer intimacy and product leadership. In today’s world of business ecosystems, we have added a fourth generic competitive strategy: corporate leadership. The main premise is that companies must choose—and then achieve—market leadership in one of the fourth disciplines, and perform to an acceptable level in the other two.
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 competitive 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 refinements or refocusing on existing business processes and practices to reinventing through 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.).