Strategy

A good strategy is a strategy that works, a strategy that wins. Formulation and implementation used to be separate and successive, nowaday you tend to implement as soon as possible and build up the formulation at the same time. Why do strategy fails (Forbes)


 * Having a plan for plan sake
 * Not understanding the environment
 * Partial commitment
 * Not having the right people involved
 * Writing the plan and putting it on the shelf
 * Unwillingness or inability to change
 * Having the wrong people in leardership position (exploration vs exploitation)
 * Ignoring marketplace reality, fact, assumption
 * Uncontrollable events

Why is implementation so important
Risks must be taken in the low not in the high: Be wise when others are bold, be bold when others are scared (crisis).
 * Many of the successes and failures are related to the implementation more than the definition.

Soft skills are important but cannot replace hard skills like finance and strategy. they are complementary not exclusive.  Strategy

1.Introduction

Strategy  help the manager understand what actions will be most likely to achieve the organization’s  goal  given its internal and external  context.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:3pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strategy <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> is not tactic, it is not action focused. It define the <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">kind <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> of products, how they will <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">compete <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> and, the type of <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">resources <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> and <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">capabilities <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">the company will need.

<p dir="ltr" style="line-height:1.3559999999999999;text-align: justify;margin-top:2pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strategy should be communicated and understood by all <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">decision makers.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strategy <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">is <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">dynamic. <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">It should <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">change <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">with the <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">context <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> and let manager be <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">efficient <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> in  <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">stable <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> environment.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">To <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">design <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> a strategy, <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">managers <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> need to <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">understand <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> the relationship between <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">actions, context <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">and performance. But also the <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">sources of performance, threats <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">and <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">opportunities. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Performance, manager and firms == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Performance: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Need to be <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> defined <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> and <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">measurable. <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Need to match the <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">goal <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> of the company (most of the time : profit, or owner object if non-profit)

<p dir="ltr" style="line-height:1.38;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Firms: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">a specific <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">business unit <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> in a specific <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">contexte. <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Each firm need its <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">own strategy. <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> A company can have several firms.

<p dir="ltr" style="line-height:1.38;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Manager: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strategy is the responsibility of any <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">general manager. <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> No matter his/her position in the hierarchy. =<span style="font-size:10pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">2.Business strategy = <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Long terms goal + scope + competitive advantage + Logic ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Long term Goals: The Where  == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Refers to the position or status the firm want to reach. They may take a long time to achieve and then must be maintained. Should provide a sense of purpose and/or deter competition. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Scope The What == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Define the product, the market and the target. Therefore, define what the company will not do. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Competitive advantage The How == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Must state compelling reasons to explain that it will be able to compete. Most of the time, better service or lower cost. It is an advantage only if it contribute to the long term goal. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Logic The Why == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Why this scope and competitive advantage will work and why the company will succeed. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Mission, value and purpose statement == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Complementary to the strategy. Reuse some elements like the goal but rarely use the logic.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">It helps : Clarify and emphasize the goals, help for non profit organization communication, strengthen the reputation if the values are genuine and distinctives. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Vision == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Mental vision of a possible and desirable future. Bridge from the present to the future. It is never sufficient nor necessary. Providing vision is a role, formulating the strategy related to that vision is a skill. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strategy statement == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Not often communicated, Maybe because it was never articulate, inconsistent, or fear of the competitors.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Communicating a strategy statement offer: clarity (for decision makers), coordination, incentives, efficiency, evaluation, adaptation, change. But it can create rigidity and inertia.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">7 steps to implementation :

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Identification, evaluation, option developpement, evaluation, selection, communication, implementation

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strategy identification: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> Based on routines and decision making in each key area (finance, sales and marketing, manufacturing,  etc.). Then understand the logic that ties everything together.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strategy evaluation <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">: testing the logic. Argument about how the company intend to achieve its goals. Swot buffed with factors corresponding to the scope and competitive advantage. =<span style="font-size:10pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">3.Competitive advantage = <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">You create value when the customer is willing to pay more than the cost of production.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Performance is about creating value but competitor can also steal the value you create. Company should also focus on capturing value. There is no special recipe here.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Competitive advantage come from a position or capabilities.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Position advantage <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">come from 3 forms: Industry structure (ie: monopoly), heterogeneity in the industry (Geographic presence, economy of scale), or network and relationship.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">IE: Brand name, customer relationship, government protection, first mover.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Capability advantage: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> What the company is doing better. <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">  <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strong know how, expertise, organization ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Transitory vs enduring == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Not all competitive advantages are made to last. Some are temporary. <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">To make a capabilities sustainable, make it hard to copy (complexity, patent, trademark) or stay ahead of your competitors.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Position is harder to sustain because it may be a non market advantage (trade barrier). Yet, EOS and industry structure are hard to break. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Position and capabilities == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Companies usually have both with one stronger than the other. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Cost-quality frontier == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Competitive advantage can be : produce better quality for same cost or same quality at lower cost. It offer the possibility of selling at the same price as competitor or moving the price according to the company advantage. Both allow to capture value. Still relate to either position, capability or both.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Quality and cost are subjectives and context dependant. You rarely see quality and cost advantage. But you can see both disadvantage. To order companies, you can use a graph with cost and advantages as axis.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Several companies can be efficient at different level of cost-quality. You do not have to have the best quality or the lowest cost, but an efficient quality-cost position. =<span style="font-size:10pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">4.Internal context: Organization design = <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">The assets’ raw quality is not necessarily enough. How you use them and organize them is equally important.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">For employee and unit, we must look at incentives. Is everybody is using the organization designed.. How to make sure everything work with incomplete information. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">ARC: Architecture, Routine, Culture == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Architecture: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> division of the firm, reporting relationship, hierarchy, recruiting and compensation.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Routines: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">formal and informal procedures, processes and habit of day to day.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Culture: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> commonly held values and beliefs. =<span style="font-size:10pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">8.Competition in concentrated market = <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">2 type of market: oligopoly (several big player, action of one influence the others) or dominant firm (1 really big player).

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Usually profitable market, but some change can also make it really competitive.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">In an oligopoly you care about the players, the actions(what you can do and how), the timing, the information and the repetition. You do not only care about your action but how your competitors will react (based on their best interest) and if it is going to create value at the end. Competitors are doing the same.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">If the market has a dominant player and the product are differentiated enough (meaning, a difference in price does not mean a difference in sales), the market tend to act like a monopoly.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">By setting a high price, the dominant firm allow everyone to make profit and reduce the risk of a challenger by increasing the loose of attacking it. =<span style="font-size:10pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">11. Strategy in a changing environment = <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Change can be market (competition, technologie, substitution) or non market (laws, ethic, NGO). We need to think about how they are going to change the rules of the game.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">The life cycle of a company can also drastically change in case of a change in its environment. Creating new growth  potential or ending the business on the spot. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Life cycle == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">During the emergence phase, the biggest challenge is uncertainty. Uncertainty act on different level technologies, markets,internal organizations and strategy. The market will usually select the winning approach solving what are the key element to succeed. Everybody start copying the winner and we move to global Growth.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">During Growth, there is little competition as the market is larger than the combined capacity. This is also when new entrant try to exploit the niche. The market move to EOS and incremental innovation rather than disruptive.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Once the market is stable, we reach maturity. We enter a game of mergers, acquisitions and incremental R&D. Once the market decline (market on non market reasons) you can still make money if the decline is permanent because competition become too expensive and therefore stop. So stay a bit but not till the end. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Organization  == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Organization tend to evolve at the same time as the life cycle. 2 main type : Vertical or horizontal The trend is to start vertical and move to horizontal as the market tell you where to put the structure. Vertical structure usually integrate most of the value chain while horizontale structure focus on few key steps. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Managing strategic change == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">If your environment change your strategy and organization need to change. Strategy because you need to adapt and organisation because you need a fit between the 2. Make sure your incentive, promotion and hiring process match the kind of behaviours you want/need. Especially when new technologies destroy previous competences.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">You can create new organization depending of the project.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> =<span style="font-size:10pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">12. Strategy with market in DSIR = <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">DSIR: Demand-side increase return.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Same as network externalities, network effect, positive feedback, demand-side EOS.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">The product’s benefit to each user increase along with the number of other users. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Sources of the phenomenon == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Compatibility benefits: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> if everyone can use the same product, everybody win. Work if there is standardization benefits (wrench, nuts and bolt; railways gauge, language)

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Network benefits: <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> the product is interesting only if other use it (telephone, internet) but the bigger the user base, the more constrain and cost on the resources needed to implement them. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Competition in DSIR market == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Winner take it all market. There is a <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> installed base <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> of users (who already use the product) and a <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">tipping <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> (people tend to use the most used solution, a slight share  advantage can create complete shift with time.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">You usually want <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> high switching cost <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> to prevent users from using other solutions. As long as users can’t switch all together, they will stay.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Unless the new solution is worth the loss. If the new technology is sufficiently better, users will switch. As more and more user switch the less the cost of switching.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Companies have incentives to <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">invest in new technologies <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> but not too fast as it <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">cannibalises <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> precedent product’s revenues. They will tend to <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">pre-announce <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> future technologies and <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">react <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> to competition announcement. Why should a consumer switch if the same upgrade is coming 3 months later in his ecosystem ?

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Once you have a large consumer base, you can ask for a <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">price premium <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> to accommodate the network advantage. You can also <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> charge them to upgrade <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> to more advanced version once they are tied with the product.. The more expensive you are, the more incentive you give to competition to enter and the user to switch.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Therefore, companies may <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">tend to use cheaper than expected price <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> or even no charge at all. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Systems of components == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Sometime your product must work with other. Then you need to choose if you want to make it <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">compatible with external products (ie: OS + Apps)  <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">and if you want to <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">leverage <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> your dominant position.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">You can leverage a dominant position by using exclusive resources of your product, blocking suppliers/customers/competitors. But it is not always worth it. ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Managing the adoption process => get users == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Create the belief you are the next standard.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">You can create an open (free)  standard.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Your reputation mater, use it.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Get a strong partner that will influence others.

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Show already signed customers

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Do not discourage piracy (yet)

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Reduce the cost (Leasing and price commitment) ==<span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Standard setting == <p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Standard can also be set by outside players like government or organizations (ISO).

<p dir="ltr" style="line-height:1.2;text-align: justify;margin-top:0pt;margin-bottom:3pt;"><span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Standards can benefit everyone but work if the members of the committee <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">want a standard <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> and have <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">no interest <span style="font-size:8pt;font-family:Cabin,sans-serif;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> in which standard is used