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Copyright July 2008 John R. Castle
Strategy Is Choices 1
STRATEGY IS CHOICES
WHAT WE DO …. +
WHAT WE DO NOT DO.
John R. Castle, Sc.D
Copyright July 2008 John R. Castle
Strategy Is Choices 2
Muir Glacier, Mt Rainier
MAKING DIFFICULT CHOICES
To cross or not to cross the crevasse?
Copyright July 2008 John R. Castle
Strategy Is Choices 3
STRATEGY IS NOT….
WHAT WE SAY WE WILL DO IN THE FUTURE.
Use the “Walks like a duck” test.
Copyright July 2008 John R. Castle
Strategy Is Choices 4
STRATEGY IS….
DEFINED BY CHOICES OF:
• SCOPE
• SPEED
• SCALE
Copyright July 2008 John R. Castle
Strategy Is Choices 5
Lone Flower, Yukon
How do we stand out from the
competition?
Copyright July 2008 John R. Castle
Strategy Is Choices 6
Hagel & Singer, HBR, March 1999
“Unbundling the Corporation”
CUSTOMER RELATIONS – form a relationship with customers and satisfy them
PRODUCT INNOVATION – create new products with broad appeal to many customers
INFRASTRUCTURE – get operational efficiencies through scale and repetition
Strategic Choices
Copyright July 2008 John R. Castle
Strategy Is Choices 7
Porter, HBR, November 1996
“What is Strategy”
VARIETY-BASED- fixed product line for many customers
NEEDS-BASED- complete line of products for single customer group
ACCESS-BASED- location and infrastructure assets
Unique Choices
Copyright July 2008 John R. Castle
Strategy Is Choices 8
CUSTOMER RELATIONS
• NEEDS-BASED
• CUSTOMER FOCUSED
• FIND
• ATTRACT
•ASSIST
•SERVE
•KEEP
• (LISTEN)
Copyright July 2008 John R. Castle
Strategy Is Choices 9
NEEDS-BASED – CUSTOMER RELATIONSHIP
NEUTROGENA
• SKIN CARE FOCUS
•DERMATOLOGIST ENDORSEMENTS
•DRUGSTORE CHANNELS
•NO DEODORANTS
•SMALL, FRAGILE BARS
Copyright July 2008 John R. Castle
Strategy Is Choices 10
Antique store, BC
Sometimes it is more complicated…
Copyright July 2008 John R. Castle
Strategy Is Choices 11
PRODUCT INNOVATION
• VARIETY -BASED
• EMPLOYEE FOCUSED
• (LISTEN)
• CONCEIVE
• DESIGN
• DEVELOP
• DELIVER
•KEEP
Copyright July 2008 John R. Castle
Strategy Is Choices 12
VARIETY BASED – PRODUCT INNOVATION
SOUTHWEST AIRLINES• LOW FARES
•TICKETING AT GATE
• FAST TURNAROUNDS
•LIMITED ROUTES
•NO MEALS
•SINGLE-CLASS SEATING
Copyright July 2008 John R. Castle
Strategy Is Choices 13
Hex Mountain, WA
Sometimes the choices are easy and obvious….
Copyright July 2008 John R. Castle
Strategy Is Choices 14
INFRASTRUCTURE
•ACCESS-BASED
• COST -FOCUSED
• (DELIVER)
• CONTROL
• BUILD
• TRACK
• MEASURE
Copyright July 2008 John R. Castle
Strategy Is Choices 15
Copper Mine Santa Rita, NM
Small Scope, Big Scale, Slow Speed
Copyright July 2008 John R. Castle
Strategy Is Choices 16
WALMART - an exception?
SELECTION OF GEOGRAPHIC MARKETS
• Customers in small towns (cust)
• Only sells known brands (prod dev)
• Distribution tightly managed (infr)
Copyright July 2008 John R. Castle
Strategy Is Choices 17
Rampart Lakes, WA
SEEING THE BIG PICTURE
Copyright July 2008 John R. Castle
Strategy Is Choices 18
HOW STRATEGY IS CREATED
A. DEFINE YOUR INDUSTRY
• IDENTIFY THE INDUSTRY LEADERS
• DESCRIBE THEIR APPARENT STRATEGY
Copyright July 2008 John R. Castle
Strategy Is Choices 19
HOW STRATEGY IS CREATED
B. RUN THE PROCESS IN REVERSE
• DEFINE EVERYTHING YOUR MARKET WANTS
• THEN CHOOSE THE THINGS YOU WILL NOT DO
Copyright July 2008 John R. Castle
Strategy Is Choices 20
Marmot Lake, WA
Copyright July 2008 John R. Castle
Strategy Is Choices 21
CLASS EXERCISE
1. IDENTIFY THE INDUSTRY LEADERS
2. DESCRIBE THEIR APPARENT STRATEGY
3. LIST EVERYTHING YOUR MARKET WANTS
4. CHOOSE THE THINGS YOU WILL NOT DO
Copyright July 2008 John R. Castle
Strategy Is Choices 22
Totems Kitwancool, BC
That is how you can
stand out from the
competition?
