The Penta Model

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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


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