The Competitive Strategy Portraits Map analyzes and compares a firm’s strategy state to those of its competitors.
business
Description
1 COMPETITIVE STRATEGY PORTRAITS MAP
1.1 Model
The Competitive Strategy Portraits Map
analyzes and compares a firm’s strategy state to those of its competitors. It
shows how the firms in an industry exploit their resource portfolios, activity
systems and value systems to satisfy their customers, compete and innovate. The
map illustrates the concepts of resource portfolio, activity system and value
system gaps and advantages. These gaps and advantages occur at the serving,
competing and innovating stages. Competitive strategies rest on strong activity
systems which are supported by the firms’ resource portfolios and value
systems. The activity systems ultimately allow the firms to satisfy their
customers, compete and innovate successfully.
Figure 4‑1: Competitive Strategy Portraits Map
1.2 Notes
1.3 Example
At the
resource level, I believe Southwest has a very strong human resource portfolio.
Another strength is its modernized fleet. New aircrafts also have newer
passenger amenities. The fleet also use a single type of aircraft. This
resource management strategy has been a cornerstone of its strategy and sources
of competitive advantage over its competitors. At the activity system level, I
believe that Southwest has the strongest activity system among its competitors.
At least the activity system has allowed it to serve its customer very well and
win the competition. The excellent resources mentioned above coupled with other
strategic choices such as point-to-point routes, secondary airport, direct
marketing etc., has allowed the firm to form an outstanding activity system.
However, at the value system level, its competitors have stronger networks that
allow them to cut costs. Thus, Southwest might want to pursue commercial
partnerships with other airlines (global alliances, code-sharing, capacity
purchase agreements) to expand route offerings.
1.4 Checklist
|
q Our resource portfolio allows us to create
unique customer value and serve our target markets better than our
competitors. |
|
q Our resource portfolio allows us to
innovate better than our competitors. |
|
q Our activity system allows us to create the
unique customer value and serve our target markets better than our
competitors. |
|
q Our activity system allows us to innovate
better than our competitors. |
|
q Our value system allows us to create the
unique customer value and serve our target markets better than our
competitors. |
|
q Our value system allows us to innovate
better than our competitors. |
1.5 Worksheet
·
Competitive Strategy Portraits Map: Mapping
(Worksheet 5)
Please
evaluate the firm’s strategy portraits vis-a-vis your competitors’.
1.5.1 Competitive Strategy Portraits
Map: Mapping (Worksheet 5)
Please
evaluate the firm’s strategy portraits vis-a-vis your competitors’.
