D. PROPRIETARY ENABLERS D1. Proprietary Standard Capture an extensive set of complementing products that enhance the product value
Control proprietary Standards, rare Resources or Core Capabilities that enable a unique value proposition D2. Core Resources or Capabilities Gain ownership of rare Resources or develop proprietary Core Capabilities that enable a unique value proposition
E1. Conceptual Innovation
C2. Dominant Exchange
Conceptually new, higher value product , with lower cost, and attracting marginal customers or nonconsumers
Set an interface between buyers and sellers that is difficult to displace once it achieves critical mass
E. DISRUPTIVE VALUE
C. SYSTEM LOCK-IN Establish dominance in the market
The customer is attracted by an conceptually innovative product or by a technology-enabled low cost product of acceptable quality
The Penta Model α
C1. Exclusive Channel Significant barriers set in place to make it difficult for competitors to access the customer
E2. Disruptive Innovation
Cost-reducing technology or method innovation that offers acceptable quality to the customer, at low prices
COMPETITIVE FACTORS (how-to-win)
B3. Horizontal Breadth
A1. Low Cost
Satisfy all the meaningful customer needs for related products (one-stop-shop)
Lowest-cost provider for an undifferentiated product category, allowing the lowest-price offering
B. TOTAL CUSTOMER SOLUTION Provide a customized solution to customer’s most pressing needs
B2. Added Value Transfer knowledge to the customer, in order to enhance the product value
A. BEST PRODUCT The customer is attracted by the characteristics of a superior product
B1. Customer Intimacy Provide a unique experience to the customer throughout the complete cycle of ownership
A2. Differentiation Development of features and functionalities that make the product unique, commanding a premium price © 2015 – Strategic Systems Consulting
Note: The A-C Strategic Positions and their included Strategic Choices are based on Arnoldo C. Hax’s Delta Model
I. NEW MARKETS I1. New Domain/Industry
New local domains/industry entry or international markets entry
I2. Internationalisation
New domain/industry market entry, with new products, leveraging a corporate group or holding structure
New market entry in different geographies with the same or localised products
J1. Market Redefinition
H2. Substitute Market Adapted existing products that substitute existing ones, in a different industry
Conceptually new markets, targeting mainly marginal customers or nonconsumers
H. DIVERSIFICATION
J. MARKET CREATION
Conceptually new markets or future trend markets
Collateral or substitute products markets entry
The Penta Model β
H1. Collateral Market Existing customers targeted for new products, displacing existing vendors
MARKET BOUNDARIES (where-to-play)
G2. Sales Channel Refocus
J2. Future Market
Trend markets, formed by early adopters of innovative products (early mover advantage)
F1. Needs Segmentation
Customer re-definition for better customer intimacy or increased market penetration
Market segmentation based on strategic groups demographics, buying patterns or life styles
G. CHANNEL FOCUS
F. MARKET FOCUS
Sales channel re-focus or customers targeted by proximity or buying convenience
Market segmentation, allowing a customised targeting, according to specific customer needs or buying behavior
F2. High-End Market
G1. Proximity Market
F3. Long Tail
Customer market defined by the proximity to the sales channel locations or by the improved buying convenience
High-value customers, demanding premium Large number of products and customised seler-buyer relationships price-sensitive and low-value customers, (commodity market) © 2015 – Strategic Systems Consulting