THE NEW
PSYCHOLOGY
OF
STRATEGIC LEADERSHIP
by Giovanni Gavetti distant opportunity
Bargaining Power of Suppliers
Threat of New Entrants
STRATEGIC
Industry Rivalry
Threat of Substitutes
Bargaining Power of Buyers
5 FORCE ANALYSIS Michael E Porter
mountaintops diagram
unoccupied position
distant opportunity
occupied position occupied position
occupied position occupied position
HIGH COMPETITIVE
occupied position
occupied position
occupied positio
distant opportunity
LOW COMPETITIVE unoccupied position
occupied position
d position
FINANCIAL SUPERMARKET distant opportunity
Bargaining Power of Suppliers
Threat Industry of New Entrants Rivalry
Bargaining Power of Buyers
Threat of Substitutes
distant opportunity
Spot
opportunity
for
Act on
users
opportunity
Legitimize
opportunity
Internal
$
for
External
users external
WHAT& Spot
opportunity
HOW distant opportunity
They think
close opportunity
Our Business
close opportunity
close opportunity
close opportunity
distant opportunity
CASE STUDY
rural
suburban Walmart Walmart
Big Effect
cost structure
Operational organization
Japanese manufacturers HONDA YAMAHA SUZUKI KAWASAKI
Vehicle technical innovation lower cost
Motercycle Industry
as “Entertainment”
Harley-Davidsons
&Ducati
“Ducati is not, or not only, a motorcycle company.
We sell something more: a dream,
Federico Minoli
CEO and chairman’s Ducati
passion, a piece of history ”
distant opportunity
unoccupied position
occupied positions
LOW-COST
Major US Airline “EVERYONE CAN FLY”
Herb Kelleher
Southwest Airlines
distant opportunity Herb Kelleher of Southwest Airlines
opportunities
opportunities
opportunities
opportunities opportunities opportunities opportunities
“Superior close opportunities always available But have not been spotted�
FINANCIAL SUPERMARKET
$
$
$ ABC
Charlie Merrill’s
ABC
ABC
ABC
m Super
t
a r ke
“if it is good business for a grocery chain to
offer the purchaser of vegetables a choice of meats”
commercial hedger
$
$
$
TYPE A
$
$
$
TYPE B
$
$
$
TYPE C
$
$
$
TYPE D
“Offer a commercial hedger a chance to invest
in a new issue or to open a stock account� Banking Service
$
Merrill Lynch
? Act on
opportunity
for
Internal users
DIGITAL CAMERA
distant opportunities
George Fisher
film camera digital camera
KODAK
“If a leader tries to march toward strange destinations,
the organization is likely to
deflect the effort.�
KODAK
CFO
CEO
Employees CMO
Manager Owners
Government
creditors
suppliers
stakeholders
Customer
Society
“Legitimize it in
the eyes of external stakeholders�
Larry Page & Sergey Brin
1998 David Filo & Jerry Yang
YAHOO
1995
Search engine 1994 Web Portal
Bob Davis
LYCOS
Google Google Search
I’m Feeling Lucky
Spot
opportunity
Act on
opportunity
Legitimize
opportunity
THE POWER OF
ASSOCIATIVE THINKING
“our brains automatically search for
and retrieve from long-term or
types of experiences”
memory past experiences
ATTITUDES
EMOTIONAL STATES
BIASES
Logical
Thinking
E= MC
2
B
S=vt
A+B+C = 0
A
PROFIT = TR-TC MC = MR
E
B
A
C
D
Associative Thinking
distant opportunity
metaphors
analogies
=
Deep experiences 10 years
Mistake
e k a t s Mi
Emotional factors
3 years
1years
A+
B+
PR
OF
“The difficult quest for
IT =
distant opportunities
0
A
B
E
MC 2
S=
vt
TR
-TC MC
B requires
good economists good psychologists.� A
strategic leaders who are and
C=
E=
=M
R
D
THANK YOU