STRATEGIC MODELS

3&4

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 Strategic models
1. Trend models
2. Porter

3. Resource based wiew

4. Total customer experience

5. Delta model (Hax)

6. Blue ocean strategy
7. Pentamodel

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Resource based wiew
CORE COMPETENCIES
Es. CANON
PRODUCT PRECISION MECHANICS FINE OPTICS MICRO- ELECTRONIC
ELECTRONICS IMAGING
BASIC CAMERA X X
COMPACT FASHION CAMERA X X
ELECTRONIC CAMERA X X
EOS AUTOFOCUS CAMERA X X X X
VIDEO STILL CAMERA X X X X
LASER BEAM PRINTER X X X
COLOR VIEDEO PRINTER X X X
BUBBLE JET PRINTER X X X
BASIC FAX X X X
LASER FAX X X X
CALCULATOR X
PLAIN PAPER COPIER X X X X
BATTERY PPC X X X X
COLOR COPIER X X X X
LASER COPIER X X X X
COLOR LASER COPIER X X X X
STILL VIDEO SYSTEM X X X X
LASER IMAGER X X X X
CELL ANALYZER X X X X
MASK ALIGNERS X X X
STEPPER ALIGNERS X X X
EXCIMER LASER ALIGNERS X X X X

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GPB/ab_2005 4
Definition

The resource-based view (RBV)

is a model that sees resources as key to superior firm performance. If a resource exhibits VRIO
(valuable, rare, non imitables, organized) attributes, the resource enables the firm to gain and
sustain competitive advantage.
RBV is an approach to achieving competitive advantage that emerged in 1980s and 1990s, after the
major works published by Wernerfelt, B. (“The Resource-Based View of the Firm”), Prahalad and
Hamel (“The Core Competence of The Corporation”), Barney, J. (“Firm resources and sustained
competitive advantage”) and others.
The supporters of this view argue that organizations should look inside the company to find the
sources of competitive advantage instead of looking at competitive environment for it.
RBV model
 Tangible assets are physical things. Land,
buildings, machinery, equipment and
capital – all these assets are tangible.
Physical resources can easily be bought in
the market so they confer little advantage
to the companies in the long run because
rivals can soon acquire the identical assets.
 Intangible assets are everything else that
has no physical presence but can still be
owned by the company. Brand reputation,
trademarks, intellectual property are all
intangible assets. Unlike physical resources,
brand reputation is built over a long time
and is something that other companies
cannot buy from the market. Intangible
resources usually stay within a company
and are the main source of sustainable
competitive advantage.
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RBV model
Heterogeneous. The first assumption is that skills,
capabilities and other resources that organizations
possess differ from one company to another. If
organizations would have the same amount and mix of
resources, they could not employ different strategies to
outcompete each otherTherefore, RBV assumes that
companies achieve competitive advantage by using their
different bundles of resources.
Ex. Apple vs Samsung: Samsung does not have the same
brand reputation or is capable to design user-friendly
products like Apple does. (heterogeneous resources)

Immobile. The second assumption of RBV is that

resources are not mobile and do not move from
company to company, at least in short-run. Due to this
immobility, companies cannot replicate rivals’ resources
and implement the same strategies. Intangible
resources, such as brand equity, processes, knowledge
or intellectual property are usually immobile.
VRIO model
Value. Resources are valuable if they help organizations
to increase the value offered to the customers. This is
done by increasing differentiation or/and decreasing the
costs of the production. The resources that cannot meet
this condition, lead to competitive disadvantage.
Rarity. Resources that can only be acquired by one or
few companies are considered rare. When more than
few companies have the same resource or capability, it
results in competitive parity.
Imitability. A company that has valuable and rare
resource can achieve at least temporary competitive
advantage. However, the resource must also be costly to
imitate or to substitute for a rival (history, social
complexity)
Organization. The resources itself do not confer any
advantage for a company if it’s not organized to capture
the value from them. Only the firm that is capable to
exploit the valuable, rare and imitable resources can
achieve sustained competitive advantage
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Total customer experience
TOTAL CUSTOMER EXPERIENCE

In mature markets, differentiation and efficiency are no more dependent from few
factors. To day competition is on differentiation and costs together

The customer is the focus of the strategy

1. Every customer has many needs (variety and complexity)

1. The costumer is sensitive to
• Satisfaction factors
• Unsatisfaction factors
2. The customer lives his relation with our product/service in many stages
(truth moments)

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Needs variety and complexity

Needs-understanding coupled with the right product features are the key ingredients
for architecting a great customer experience design.

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TOTAL CUSTOMER EXPERIENCE

• The customer lives his relation with the product/service in many stages (truth
moments)
• Only processes working on “truth moments” are core processes

Es.: flying

I decide to go to I chose among I buy the flight I look for the I go to the
Rome alternatives ticket airport

I check-in I send baggage I go on the plane I fly I land

I look for baggage I go to my final

destination

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The customer journey

The total experience has to be managed

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best product strategy • Companies with a “best product strategy” have a
horizontal vision of the market.
vs total customer • Companies with a “total customer solutions strategy” have
solutions strategy a vertical vision.

Customers segments
A B C D E F
1
Best Product, enphasis on:
Channel Hannel 3
1 Channel 2

2
Product 2
Products

Product 1

Best Product
Channel 1 Channel 2
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Best product strategy
vs total customer The traditional interface in the
BEST PRODUCT STRATEGY
solutions strategy

Organization Salesmen Buyers Organization

Suppliers Customers

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GPB/ab_2005 19
Best product strategy
vs total customer The relations with the customers in the
solutions strategy TOTAL CUSTOMER SOLUTIONS STRATEGY

ACCOUNT
CRM
Line Manager Line Manager

R&D R&D

Manufacturing Manufacturing

Marketing e Distribution Marketing e Distribution

Finance Finance

After Sales After Sales

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Resources and capabilities
for the total customer experience strategy

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