BU481 Lecture Notes - Lecture 5: Value Proposition, The Home Depot
Document Summary
Not operational effectiveness: leads to imitation and homogeneity in most cases, homogeneity all business performs the same thing. Rests on unique activities: being different than competitors, combining activities in different ways creating a strategic fit. Sustainable strategy requires trade-offs: can"t be all things to all people. Creating a clear strategy often dependent on leadership: requires constant discipline and clear communication. Goals: what business propose to achieve. Value proposition: low cost, differentiated products. Analysis: degree of linkage and coherence between the elements. If the elements fit well you will see it as a result. Often include growth (financial and geographic: profit, we want to expand into more locations. Provides targets against which progress and performance can be assessed. What are we doing to the company that is adding value. A statement of the fundamental benefit that the company has chosen to offer in the market place. Generic strategies: low cost, differentiation, best cost provided, stuck in the middle.
