Framework For Business Strategy[1]

A Framework for Business StrategyUtility is not sufficientfor successPrice must create a large pool of customers•Attractioncustomers must be convinced they cannot find better value elsewhere•RetentionWinning Business Ideas(article by Kim and Maugborgne)Key questions at each stage of the Buyer Experience CycleWinning Business Ideas(article by Kim and Maugborgne)Winning Business Ideas(article by Kim and Maugborgne)CoffeeOldDellNewLight bulbOldStarbuck’sNewLight bulbNewUtility Creation is the keyBuyer ExperienceUtility LeversCustomer productivityPurchasesimplicityConvenienceRiskFun/ImageEnvironmentalfriendlinessDeliveryUseSupplementsMaintenanceDisposalInnovationCommitment to QualityEmployee RetentionMarket DrivenReceptivity to ChangeValuesControlFinancialBest PracticesINDICATORS OF SUCCESSWilliams Company-costs drop as transport volume grows-they ride the declining cost curve-they stick to their formula of big projects/big customersCore Business(article by Wysocki)What is a core business?-product?-intellectual property?-process?-business design?It is critical to pick a specialtyCore Business(article by Wysocki)Amazon.com: (business design) -gathering customers over the InternetCapital One: (process) -You have been pre-approved; computer-based marketingCore Business(article by Wysocki)“We make people happy” -this is what is of value to Disney customersFocused pursuit of customer value energizes Disney cast membersNational Grange Mutual -independent agent is their customer-they are “trustees” of customer livelihoodvalue statement-clear sense of purpose-guide for decision making-involvement creates advantage (people!)Short-term: 1 year (UNIT)Increase number of alumni events by 15Hold alumni events in 5 new locationsIncrease public relations about current BU NM ScholarsLong term (UNIT)Increase active alumni by 25%Increase National Merit Scholars by 20%Reduce “conditional” acceptances by 15%OBJECTIVESALUMNI RELATIONSSTUDENT RECRUITING