Strategy Dynamics Briefing 71: Conflicting objectives

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Recent briefings urged us to focus on the direct impact of decisions, rather than following simplistic rules based on ratios or overall performance outcomes, especially profits. But many decisions, such as various spending choices, include a direct profit impact, as well affecting the resources and operating performance in their particular part of the system. In practice, then, many decisions have to balance conflicting aims.

Take the case of an established power company, supplying electricity to a large number of homes. ...

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StrategyDynamics Briefing 56: Rivalry in project-based industries

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In industries where customers buy substantial projects, each contract is effectively a case of type-1 rivalry – either we win it, or a competitor does. Examples include construction projects in civil engineering or process industries, IT projects for government departments, and large consultancy studies. Customers usually ask possible suppliers to submit bids for a project, issuing “invitations to tender” (ITTs) or “requests for proposal” (RFPs). Although suppliers would prefer a continuing relationship, to enjoy a steady stream of all of ...

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Strategy Dynamics Briefing 54: Type-1 rivalry in emerging markets

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Markets are often in a process of emergence, when new potential customers develop, driven by product and/or price improvements offered by suppliers, as well as by political, economic, social or technological change (“PEST”) factors. This customer development process has important implications, especially for type-1 rivalry.

Figure 1 shows market development for the consumer electronic device discussed in Briefing 46; a durable product that customers upgrade or replace – with a competitor (solid lines) and without (dashed lines). When building the market ...

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