Strategic Thinking for the Next EconomyStrategic PositionEdward JonesWho, What, and How?Slide 5Slide 6Slide 7Slide 8Slide 9Uniqueness is TransitorySlide 11Strategic InnovationSlide 13Slide 14Preparing for the Unknown1: Become the Innovator2: Exploit Someone ElseBeing Ready for InnovationElements of Dynamic StrategyDesigning a successful strategy is a never ending process!Review: Strategic InnovationSlide 22Slide 23Slide 24Questions?Strategic Thinking for Strategic Thinking for the Next Economythe Next EconomyChapter 10: Chapter 10: A Dynamic View of StrategyA Dynamic View of StrategyStrategic PositionStrategic PositionWhoWho should the company target as should the company target as customers?customers?WhatWhat products or services should the products or services should the company offer?company offer?HowHow can the company do this efficiently? can the company do this efficiently?Edward JonesEdward JonesWho?Who? Individual investorsIndividual investors Areas with ‘sense of community’Areas with ‘sense of community’What?What? Long-term products (bonds)Long-term products (bonds) No risky IPO's or commodity futuresNo risky IPO's or commodity futuresHow?How? Never manufacture, only distributeNever manufacture, only distribute Buy only from reputable suppliersBuy only from reputable suppliers One-person officesOne-person offices Remain a partnershipRemain a partnership Focus on the customer, not the brokersFocus on the customer, not the brokersWho, What, and How?Who, What, and How?1)1) Chemical Brothers, Inc.Chemical Brothers, Inc., a large chemical , a large chemical firm, has developed a new compound that can firm, has developed a new compound that can be used as a substitute for traditional candle be used as a substitute for traditional candle wax. It can be formulated for about twice the wax. It can be formulated for about twice the burn time of a wax candle, but will cost the burn time of a wax candle, but will cost the customer at least 25% more. customer at least 25% more. Due to the nature of the compound, color Due to the nature of the compound, color options for the compound are limited to solid options for the compound are limited to solid colors like those found in an 8-pack of crayons.colors like those found in an 8-pack of crayons.Who, What, and How?Who, What, and How?2)2) Chocotastic ProductionsChocotastic Productions, a small chocolate , a small chocolate shop in downtown New York, has stumbled shop in downtown New York, has stumbled upon a chocolate blend that contains only half upon a chocolate blend that contains only half the fat of regular milk chocolate but provides the fat of regular milk chocolate but provides the same great taste. the same great taste. In order to accomplish this, high levels of In order to accomplish this, high levels of lactose sugars are used, making the product lactose sugars are used, making the product unsuitable for people who are lactose unsuitable for people who are lactose intolerant. Approximately 70% of adults intolerant. Approximately 70% of adults worldwide are lactose intolerant, but most worldwide are lactose intolerant, but most children under the age of 10 are not.children under the age of 10 are not.Who, What, and How?Who, What, and How?3)3) Creswell-Riggs Auto ProductsCreswell-Riggs Auto Products, a motor , a motor wholesaler, has developed a new high-power wholesaler, has developed a new high-power and high-efficiency V8 engine that provides the and high-efficiency V8 engine that provides the power of a sports car with the efficiency of an power of a sports car with the efficiency of an economy car. economy car. The engine, however, can only be sold to The engine, however, can only be sold to US auto makers due to existing trade US auto makers due to existing trade agreements, and because of the high level of agreements, and because of the high level of technological sophistication, the motor will technological sophistication, the motor will increase the price of the vehicle it is installed in increase the price of the vehicle it is installed in by 40%.by 40%.Who, What, and How?Who, What, and How?4) 4) Amazonian Hair Co.Amazonian Hair Co. hired an ethno- hired an ethno-entomologist who, when studying native tribes entomologist who, when studying native tribes in the Amazon rain forest, has discovered a in the Amazon rain forest, has discovered a beetle that, when crushed, yields an extremely beetle that, when crushed, yields an extremely effective hair conditioner that could provide a effective hair conditioner that could provide a very profitable new product. very profitable new product. The species can be raised in captivity, but The species can be raised in captivity, but because of the company’s current marketing because of the company’s current marketing strategy of “environmentally friendly” hair strategy of “environmentally friendly” hair products, management is unsure how to products, management is unsure how to proceed with the new product.proceed with the new product.Who, What, and How?Who, What, and How?5) 5) Premier Pet ProductsPremier Pet Products has developed has developed a non-toxic chemical that tastes very a non-toxic chemical that tastes very bitter to dogs, but inexplicably tastes bitter to dogs, but inexplicably tastes delicious to cats.delicious to cats.PremierPremier manufactures products for manufactures products for both dogs and cats, as well as other both dogs and cats, as well as other animals, and is able to expand current animals, and is able to expand current product lines if necessary.product lines if necessary.Who, What, and How?Who, What, and How?6) 6) Music2u.comMusic2u.com and and SongsRus.comSongsRus.com are two are two competing online-music services that are competing online-music services that are nearly tied for market share and capitalization. nearly tied for market share and capitalization. Music2uMusic2u has developed a high speed has developed a high speed download protocol that halves the download download protocol that halves the download time from its website. time from its website. Due to recent anti-trust legislation, Due to recent anti-trust legislation, however, they will be unable to protect the new however, they will be unable to protect the new protocol from imitation once it is released to the protocol from imitation once it is released to the public. public.