CPIM - Module 1.3

order qualifiers

those competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace. For example, a firm may seek to compete on trait other than price, but in order to qualify to compete, its costs and the related price must be within a certain range to be considered by its customers.

order winners

those competitive characteristics that cause a firm’s customers to choose that firm’s good and services over those of its competitors. Order winners can be considered to be competitive advantages for the firm. Order winners usually focus on one (rarely on two) of the following strategic initiatives: price or cost, quality, delivery speed, delivery reliability, product design, flexibility, aftermarket service, and image.

5 Generic Strategies

• Cost Leadership or low-cost provider

• Differentiation

• Focus

• Best-cost provider

Cost leadership

offering equal value at a lower price

Differentiation

more value to customers by offering distinctive features or capabilities.

Focus

focus on particular segment - then applies a low-cost or differentiation focus to competing in that segment

Best-cost provider.

giving to customers exactly the value they expect - created by delivering the functionality at the lowest possible price.

Value-driven enterprise

the organization must align its internal value chain activities - its competencies and capabilities - with the targeted needs to create a meaningful competitive edge - creating utility from the viewpoint of the customer.

8 Accelerators

set of principles that relate to a change driver he calls “the big opportunity”. Kotter identifies 8 of them:

• big opportunity and urgency

• guiding coalition as change agents

• vision and inspiration

• legion of volunteers

• obstacle and duplication avoidance

• credibility through wins

• self-sustaining network

• institutionalize.