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The strategy accelerator

Strategies for sustainable competitive advantage

By Alfred Griffioen

Abstract

There is only a limited number of models that give direction how to make a profit, these models focus on differentiators or on portfolio management. However, the increasing availability of all kinds of knowledge through the internet and the globalisation of the financial markets are not taken into account in these models. This article investigates how a company can make a profit in the current market. It proposes a directive framework based on market relevancy and whether the company has a unique product. Based on these parameters, a company should either consolidate its position, aim to excel more and more in its products, effectively combine products or ally with another company to differentiate or profile itself more.

Introduction

Why are Wall mart and Google performing, and General Motors and City group suddenly not any more? What makes it that one shop in a street is ‘hot’, and the other is not?

A lot has to do with the people that thrive the company, and their talents. Of course, working hard is also important, but it is no guarantee for success. Decisive is what you offer, to whom your are offering it and how you do it. That’s your business model.

Research has shown that your resources and your strategy are the most important influencers on your success in the market. Respectively 28% and 41% of the variance in success is caused by variances in recourses and strategy. The intensity of the competition is not that important. Only powerful suppliers can bargain out their share of your financial results.

The concept of the Strategy accelerator combines aspects from ‘outside-in’ theories that primarily focus on market opportunities and ‘inside-out’ theories like the Resource Based View that take the capabilities of the company as a starting point. No model can give a complete answer how to manage your company. But the value of this concept is that, on the basis of a simple assessment of the firm’s position, it gives clear directions how to further develop the company towards profitability

You can find out more about the Strategy Accelerator model in three ways:

·         The presentation describes the model shows how it is based on other business tools and models. In addition it illustrates the model with several real world examples
>> Presentation >> (pdf file, opens in new window)

·         The article describes the model and its basis with a more scientific background
>> Article >>  (pdf file, opens in new window)

·         For even more information, visit Alfred Griffioen's website www.strategy-accelerator.com

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About the author:

Alfred Griffioen (1972) has a background as strategic marketeer and business development manager. After a period as manager at a strategy consultant he is now partner of Alliance experts, advising on strategic partnerships and matching companies that are looking for an alliance partner. He is the author of the book ‘Het Senseo-effect’ which is a practical guide on alliances and is working on a second book on competitive advantage.

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