Great Repeatable Business Model (Zook C & Allen J, 2011) - A quick summary
Great Repeatable Business Model (Zook C & Allen J, 2011)
Summary
Vivid & clear differentiation — Successful companies build strategies on a few vivid and hardy forms of differentiation that act as a system to reinforce each other (e.g. Olam’s key differentiators reinforced each other — Local customer relationships meant they could react quicker to needs and weren’t adversely effected by problems in the supply chain (risk management) as if they were in a longer supply chain (SC = Farmers —> Olam — > Supermarkets VS. Farmers —> Suppliers —> Olam —> Distributors —> Supermarkets)
Replicate — Grow in ways to exploit core differentiators by replicating them in new contexts — E g. Olam used their differentiators (building local customer relationships, speed of reaction, risk management) to move from cashew market into peanuts and coffee
Easily understood — Turn sources of differentiation into routines, behaviours and activity systems that everyone in the organisation can understand and follow (e.g. Olam employee manuals for employees dealing farmers)
Ability to learn & adapt — Powerful differentiators mean enduring profits when supported by simple, non-negotiable and robust learning systems
Intro
Differentiation is the essence of any good strategy — Being different in a manner that allows you to serve customers better than competitors
Strategic differentiation and execution matter more to its performance than the business/industry its in
Problem generally internal — Growth from successful differentiation brings complexity, complexity means companies forget what they're good at
Sources of Differentiation
Most enduring organisations built strategy on a few vivid, robust forms of differentiation — acted as a system, reinforcing one another
Understandiing and agreeing about differentiation, where it can be applied and how it must evolve is what makes strategy work
Differentiation criteria: 1) Truly distinctive?, 2) Measurable against competitors?, 3) Relevant to what
Summary
Vivid & clear differentiation — Successful companies build strategies on a few vivid and hardy forms of differentiation that act as a system to reinforce each other (e.g. Olam’s key differentiators reinforced each other — Local customer relationships meant they could react quicker to needs and weren’t adversely effected by problems in the supply chain (risk management) as if they were in a longer supply chain (SC = Farmers —> Olam — > Supermarkets VS. Farmers —> Suppliers —> Olam —> Distributors —> Supermarkets)
Replicate — Grow in ways to exploit core differentiators by replicating them in new contexts — E g. Olam used their differentiators (building local customer relationships, speed of reaction, risk management) to move from cashew market into peanuts and coffee
Easily understood — Turn sources of differentiation into routines, behaviours and activity systems that everyone in the organisation can understand and follow (e.g. Olam employee manuals for employees dealing farmers)
Ability to learn & adapt — Powerful differentiators mean enduring profits when supported by simple, non-negotiable and robust learning systems
Intro
Differentiation is the essence of any good strategy — Being different in a manner that allows you to serve customers better than competitors
Strategic differentiation and execution matter more to its performance than the business/industry its in
Problem generally internal — Growth from successful differentiation brings complexity, complexity means companies forget what they're good at
Sources of Differentiation
Most enduring organisations built strategy on a few vivid, robust forms of differentiation — acted as a system, reinforcing one another
Understandiing and agreeing about differentiation, where it can be applied and how it must evolve is what makes strategy work
Differentiation criteria: 1) Truly distinctive?, 2) Measurable against competitors?, 3) Relevant to what