THE

     STRATEGIC      TASKS      OF      THE      DELTA      MODEL  

Customer  Segmenta.on  and     The  Exis.ng  and  Desired  

Customer  Value  Proposi.on   Competencies  of  the  Firm  

The  Misssion  of  the  Business  

The  Strategic  Agenda  

Monitoring  the  Strategy    

Execu.on:  
• The  Intelligent  Budget  
• Balanced  Scorecards  
 THE      EIGHT      STRATEGIC      POSITIONS  
SYSTEM  LOCK-­‐IN  

Dominant  Exchange   Proprietary  Standard  

Exclusive  Channel  

Horizontal  Breadth   Low  Cost  

Customer  Integra.on   Redefining  the  Customer   Differen.a.on  

Rela.onship  
TOTAL  CUSTOMER  SOLUTIONS   BEST  PRODUCT  
  

                 PROFILING    THE    THREE    STRATEGIC    OPTIONS    OF    THE    TRIANGLE  

Descrip.ve     Total  Customer    
Dimensions   Best  Product   Solu.ons   System  Lock-­‐In  
  Product   The  extended  Enterprise   The  network  of  Firms  
       
Strategic  Focus   The  business,  its  industry  and  its   The  firm,  its  customers,  its   The  interconnected  web  of  
compe8tors   suppliers,  and  complementors   companies  that  are  part  of  the  
network  
Driving  Force   Compe8tors   Customers   Complementors  
The  Customer  Value   Product  Focus   Customer  focus   System  focus  
             Proposi8on   Product  economics   Customer  economics   System  economics  
Product  Offerings   Standardized     Customized  bundle  of  products   PorGolio  of  products  and  services  
products   and  services   extended  by  complementors  
    Integrated  supply  chain:  The  firm,   System  supply  chain:  The  
Relevant  Supply   Internal  supply  chain   the  suppliers,  the  customers,  and   interlocking  network  of  companies  
               Chain   complementors  
Relevant  Channels   Generic  channels  of  mass   Targeted  direct     Massive  direct  
distribu8on   channel   channel  
    Brands  harmonized  around  the   Brands  harmonized  around  the  
  Product  orienta8on   customer     System  
Impact  on  Brands   Brand  explosion   Coherent  porGolio  of  brands   Coherent  porGolio  of  brands    
centered  on   centered  on    
the  customer   the  system  
Innova8on  Focus   Internal  product   Joint  product   Open  architecture,  complementors  
development   innova8on  with   as  key    
customer     Innovators  
    Customer,  supplier,  and    
IT  Role   Internal  support  e.g.,  SAP   complementor  support;  e.g.                 Total  network  support  e.g.,    
e-­‐business  and  e-­‐commerce   e-­‐system  
Degree  of  Customer     Very  small   Ponten8ally  high   Poten8ally  the  highest  
           Bonding   Depends  exclusively   Reinforced  by   Reinforced  by    
on    the  product  characteris8cs   Customiza8on  and     compe8tor  lock-­‐out  
mutual  learning   and  complementor  lock-­‐in  
 THE    RESOURCE  –  BASED    VIEW    OF    THE    FIRM  

Unique  Competencies   Sustainability  

Supported    by  resources   Lack  of  subs8tu8on  and  
and  capabili8es  owned   imita8on  by  compe8tors  
                 by  the  firm  

Compe88ve  Advantage  

Appropriability   Opportunism/Timing  
Reten8on  of  value   OffseTng  the  cost  of  
created  inside  the  firm   acquiring  resources  and  
capabili8es  
  
REINTERPRETING    PORTER´S    FIVE    FORCES    THROUGH    THE    DELTA    MODEL  

New  Entrants  
(Entry  Barriers)  
Complementors  
2

5
6

3
Industry  
CompeMtors  

Suppliers   Intensity   Buyers  

of  Rivalry   4

SubsMtutes  
                                                                  MODELS        COMPARISON  

     
Porter   Resource  –  Based   Delta  Model  
View  
Focus  of  Strategic          
Aten8on   Industry  /  Business   Corpora8on   Extended  Enterprise  

Types  of     Low  cost  or   Resource  Capabili8es   Best  Product    

Compe88ve   Differen8a8on   Core  Competencies   Total  Customer  Solu8ons  
Advantage   System  Lock-­‐In  

Strategy    as     Rivalry   Real  Estate   Customer  Bonding  

Environmental       Customer  Segmenta8on  &  

Scan   5  Forces  Model   None   Customer  Value  Proposi8on  

Internal       Resources     The  Firm  as  a  Bundle  

Scru8ny   Value  Chain   Capabili8es   of  Competencies  
Core  Competencies   The  8  Strategic  Posi8onings