Index
access-based positioning, 14–16
activity reinforcement, and fit among activities, 22–24
activity-system maps, 23, 24, 25
Adams, Paul, 238
advertising campaigns, 56
airline industry, 8–9, 17, 19, 20–21, 39, 52, 58, 139–140
Altria Group, 236
American Home Products, 239
American Management Association, 104
America Online (AOL), 191, 194, 196–197, 199, 202–203, 204
Amgen, 240
Anderson, Gary, 118
AOL Time Warner, 196, 203, 206
Apple Computer, 43, 62, 68, 101–102, 103–104, 116, 122, 131, 133
Argyris, Chris, 186
automobile industry, 20, 39, 133
Bain, Bill, 200
balanced scorecard, 167–190
business planning in, 168–169, 171, 173, 177, 183–185
changes in management processes and, 170
communicating and linking in, 168, 170, 173, 176–185
definition of, 167
example of, 170–172
feedback and learning and, 169, 171, 173, 177, 185–189
processes in, 168–169, 173, 177
translating the vision in, 168, 170, 172–177
Baldrige National Quality Award, 89
Bank of America, 65
Barclays Capital, 210, 212, 213, 219, 226–227
Bessemer Trust Company, 14
Best Buy, 63
Best Data, 103
Bic Corporation, 22–24
Big Flower Press, 7
Big, Hairy, Audacious Goals (BHAGs)
articulating a vision with, 82
categories of, 95
as element of envisioned future, 80
identifying core ideology and, 98, 99
internal-transformation BHAGs, 95, 96
vivid description and, 97
Blenko, Marcia, 229–248
blue oceans
description of, 125–128
meaning of term, 124
blue ocean strategy, 123–142
applying, 126–127
barriers to imitation of, 138–140
characteristics of, 135–138
Cirque du Soleil example of, 123–124, 125, 135–138
creating, 129–133
data snapshot on, 129–132
existing core businesses and, 133
Model T automobiles and, 140–142
red ocean strategy compared with, 135, 136, 138
research on, 124–125
strategy paradox and, 127–129, 142
technology innovation and, 133
unit of analysis in, 134
Body Shop, 140
Boeing Commercial Airlines (BAC), 225–226
Borescnik, Katherine, 202
boundaries, and strategic principles, 194, 196, 203–204
brand image
blue ocean strategy and, 134–135
price competition and, 59
similarities among, 128
Brandt, Jan, 197
Breen, Ed, 220–221
British American Tobacco (BAT), 235–239
Broughton, Martin, 235–237, 238
budgeting process, and balanced scorecard, 183–184, 185, 190
Built to Last (Collins and Porras), 77
bulletin boards, 178
business model reinvention, 103–122
Apple example of, 103–104, 105
barriers to adopting, 122
building the model in, 109–115
components of a business model in, 106
customer value proposition and, 106–108, 109–112
Dow Corning example of, 117–122
Hilti example of, 113
importance of, 122
key resources and, 106, 108–109
patience needed in, 120–122
problems in doing, 104–105
questions to evaluate need for, 117
reasons for, 106–107
rules, norms, and metrics in, 115, 121
steps in, 105
business planning, and balanced scorecard, 183–185
buyer power
blue ocean strategy and, 137–138
industry analysis of, 72
profitability and, 52–55, 63, 69
Canon, 8
capacity, and price competition, 58
capital requirements
as entry barrier to a new industry, 45
positioning the company and, 65–66
Cargill, 88
CarMax, 10
Case, Steve, 196
Caterpillar, 150–153
Chambers, John, 223
change programs, and balance scorecard, 184–185
changes in industry structure
entry into a new industry and, 62–63
industry analysis of, 72
strategic positioning and, 67–68
changes in organizational structure, in strategy execution, 144, 145, 148, 151, 157, 158, 159, 166
Chase Bank, 64
Chemical Bank, 64
Child World, 27
Christensen, Clayton M., 103–122
Churchill, Winston, 96–97
Circuit City Stores, 10
Cirque du Soleil, 123–124, 125, 127, 135–138, 140, 141
Cisco Systems, 210, 211, 222–223
Citibank, 14
CNN, 138
collaboration, and decision making, 241–244
Collins, James C., 77–102
commercial-printing industry, 6–7
communication
balanced scorecard and, 168, 170, 173, 176–185, 190
high-performing companies and, 222
competencies. See also core competencies
in business model reinvention, 120
competition
blue ocean strategy and, 126–127, 129, 135
business model reinvention and, 116
changing paradigm of, 1
costs of, 69
defining an industry for analysis of, 70–71, 74
established rivals and, 41
forces that shape strategy and, 39, 40–59
industry analysis of, 72
industry changes and, 68
investment decisions and understanding, 74–75
Japanese companies and, 8
mergers and, 7
new entrants to an industry and, 41–50, 63
productivity frontier and, 3, 5–6
redividing profitability and, 69
rivalry among competitors and profitability and, 56–59, 64–65
strategy and need to understand implications of, 65–74
trade-offs in strategic positioning and, 4, 13, 16–20, 27
competitive advantage
fit among activities and, 21, 26, 27
growth trap and effect on, 31–32
strategy and sustainability of, 29
competitive convergence
description of, 3
operational effectiveness and, 7
Competitive Strategy (Porter), 13
complementary products and services, and profitability, 61–62, 64
consistency between activity and strategy, and fit, 22
Constitution, U.S., 207
continuity, in strategic positioning, 27–28
continuous improvement, 6, 7, 8, 35–36
core competencies
competitive advantage and, 21
core ideology versus, 93
core ideology, 78–94
articulating a vision with, 82
as a component of vision, 78, 79, 82
core competence versus, 93
core purpose and, 85–90
core values and, 81–85
discovering, 90–94
envisioned future differentiated from, 98
at HP, 78–79
parts of, 80
Sony example of, 101
statement of, 92
core purpose
articulating a vision with, 82
description of, 85–90
examples of, 88
five whys method for discussing, 87–89
goals and strategies versus, 86
at HP, 85–86
as part of core ideology, 80
people involved in articulating (Mars Group), 90
“Random Corporate Serial Killer” game for discussing, 89–90
Sony example of, 101
core values
articulating a vision with, 82
description of, 81–85
examples of, 84
identifying, 82–83
importance of having, 81
number of, 81–82
as part of core ideology, 80
people involved in articulating (Mars Group), 83–84
Sony example of, 101
cost
access-based positioning and, 15
blue ocean strategy and, 127, 137–138, 139, 141
of competition, 69
as entry barrier to a new industry, 44–45
fit among activities and, 26
impact of operational effectiveness on, 7
industry analysis of productivity and, 51
Japanese companies and competition on, 8
new entrants to an industry and impact on, 41
power of customers over profitability and, 53, 54
power of suppliers over profitability and, 50, 52
productivity frontier and, 5, 6
profit pool expansion and, 73
rapid changeovers and, 6
rivalry among competitors and, 58
supply-side economies of scale and, 44
trade-offs in strategic positioning and, 19
switching costs as entry barrier to a new industry, 44–45
cost leadership strategy, 13
cost structure, in profit formula, 108
cross-functional collaboration, and decision making, 241–244
customers
business model reinvention and need for, 116
as competitive force affecting profitability, 41, 43, 52–55
differences in, and strategic positioning, 16
industry analysis of, 72
shaping industry structure to neutralize power of, 69
customer service
access-based positioning and, 14–16
as core value, 81
demand-side economies of scale and, 44
Ikea’s self-service approach to, 11
industry analysis and scope of, 70–71
needs-based positioning and, 12–14
rivalry among competitors and improvements in, 56
Southwest’s approach to, 9
strategic positioning and, 9, 10, 11
variety-based positioning and, 11–12
customer value proposition (CVP)
creating, 109–112
Dow Corning example of, 118–119
as element of a business model, 106, 110
Hilti example of, 113
interrelationship of elements with, 113–115
precision of, 111–112
decentralization, and strategic principles, 197–198
decision making
information flow and, 155–156
primer on, 236–237
strategic principles and, 193
decision-making roles, 229–248
bottlenecks in decision making and, 230, 242
center versus business unit in, 239–241
cross-functional collaboration and, 241–244
diagnostic for problems in, 246
global versus local in, 235–239
high-performing organizations using, 245
inside versus outside partners and, 244–247
pitfalls in, 233
RAPID model in, 231–235, 236–237
decision rights, in strategy execution, 145, 146, 148–154, 163–165, 166
Delta Air Lines, 15
demand-side economies of scale, as entry barrier to a new industry, 44
Diamond, Bob, 219, 221, 226–227
Diamond Multimedia, 103
differentiation
blue ocean strategy and, 135, 138, 139
fit among activities and, 26
rapid changeovers and, 6
strategic positioning and, 13
trade-offs between cost and, 19
Dime Savings Bank, 64
distribution channels
as entry barrier to a new industry, 46–47
power of customers over profitability and, 54–55
Donnelley & Sons Company, 6–7
Dow Corning, 117–118, 119, 120, 122
Drucker, Peter, 90
DuPont, 55
economies of scale
blue ocean strategy and, 139
as entry barrier to a new industry, 44
Economist Intelligence Unit, 104, 211
Electrolux, 63
emerging industries, and strategy, 33
empowerment, 6
environmental determinism, 138
envisioned future, 94–102
articulating a vision with, 82
as component of vision, 78, 79, 82
core ideology differentiated from, 98
failure to realize, 100
identifying, 98–100
key points in, 98–102
Sony example of, 101
vivid description for, 95–98
We’ve Arrived Syndrome and, 101–102
enterprise resource planning (ERP) software, 45
entrepreneurial edge, 10
entry into a new industry
barriers to, 44–47
changes in industry structure and, 62–63
as competitive force affecting profitability, 41–50
framework for analyzing, 66–67
established rivals, as competitive force affecting profitability, 41, 43
Estée Lauder, 140
entry from an industry
barriers to, 57
framework for analyzing, 66–67
execution capabilities, in high-performing companies, 226–227
experimenting with boundaries, and strategic principles, 194, 196, 203–204
Federal National Mortgage Association (Fannie Mae), 86, 88
FedEx (Federal Express), 107, 116, 138
feedback, in balanced scorecard, 169, 171, 173, 177, 185–188
Fidelity Investments, 203
fit, in strategic positioning, 4, 20–28
activity reinforcement and, 22–24
competitive advantage and, 21, 26
consistency between activity and strategy and, 22
optimization of effort and, 24–25
Southwest Airlines example of, 20–21
strategic agenda and, 36
sustainability and, 26–28
types of, 21–26
five whys method, with corporate purpose, 87–89
fixed costs, and price competition, 58
focus
business model reinvention and, 116
strategic positioning and, 13, 15
Food and Drug Administration (FDA), 241
food-service distribution industry, 69–71
Ford, Henry, 95, 99, 133, 134, 141
Ford Motor Company, 96, 101, 130, 133, 134, 140–142
French, Ted, 225
Fuji, 40
furniture retailing industry, 9–11
Gadiesh, Orit, 191–207
Galvin, Paul, 80
Gamble, James, 81
Gap, 24–25
General Electric, 63, 96, 191, 195, 198, 199, 204, 205–206
General Motors (GM), 101, 130, 133
generic strategies, 13
geographic scope, in industry analysis, 70–71
Gilbert, James L., 191–207
Gillette, 103–104
Giro Sport Design, 96
globalization
decision-making roles and, 235–239
strategy and, 34
goals
balanced scorecard and, 179–180, 190
core purpose versus, 86
envisioned future and, 80, 94–95, 96, 97, 98, 99, 101
statement of, 102
Goodward Insurance, 160–162
Google, 56
government policy
as entry barrier to a new industry, 47
industry profitability and, 60–61
Granite Rock Company, 89
growth
blue oceans and, 128
broadening positions to achieve, 34
deepening positions to achieve, 33–34
profitability and, 60
rivalry among competitors and, 56
strategic principles and, 198
strategy and trap in emphasizing, 31–32
substitute offerings affecting, 55
Hewlett-Packard (HP), 77, 78, 79–80, 81, 85–86, 87, 88, 89, 91, 92, 96, 100–101, 134
Higgins, Bob, 122
Highland Capital Partners, 122
high-performing companies, 209–228
common language for the dialogue in, 222
culture of underperformance and, 218
debating assumptions in, 219–220
decision-making roles in, 245
execution capabilities in, 226–227
keeping it simple and, 219
long-term plans and, 213–214
loss of potential value and, 215–217
performance bottlenecks and, 217–218
performance monitoring in, 224–226
priorities identified in, 223–224
profit pools and, 221–222
projections and, 214–215
resource deployment in, 222–223
rules for planning and executing strategy in, 218–227
strategy needed for, 209–210
strategy-to-performance gap in, 211–218
high-tech industries, strategy in, 33
Honda Motor Company, 20
Humer, Franz, 224
ideology. See core ideology
ideology statement, 92
imitation
blue ocean strategy and, 134–135
in strategic positioning, 16–17
Immunex, 240
incentives
balanced scorecard and, 180–182
strategy execution and, 145
incumbency advantages, as entry barrier to a new industry, 45–46
industry analysis
defining an industry for, 70–71
geographic scope in, 70–71
scope of products and services in, 70–71
steps in, 51
typical steps in, 72
industry structure
common pitfalls in, 75
defining, for analysis, 70–71, 72, 74
entry into a new industry and, 62–63
exploiting, in strategic positioning, 67–68
investment decisions and understanding, 74–75
profitability and changes in, 62–65
profit pool expansion and, 74
redividing profitability and, 68–73
shaping, using strategic positioning, 68–74
information flow, in strategy execution, 145, 146–147, 154–156, 161–162, 166
innovation
blue ocean strategy and, 126, 133
business model reinvention and, 104, 115, 122
profitability and, 60
Intel, 73
internal-transformation BHAGs, 95, 96
Intuit, 112
J.C. Penney, 16
Japanese companies
operational effectiveness and, 3–5, 7, 8
rapid changeovers and, 6
Jiffy Lube International, 12
Johnson, Mark W., 103–122
JVC, 62
Kagermann, Henning, 103–122
Kaplan, Robert S., 167–190
Kennedy, John F., 99
Kenworth brand, 66
key processes, and business model reinvention
description of, 109
Dow Corning example of, 118
as element of a business model, 106, 110
Hilti example of, 113
identifying, 112–113
interrelationship of elements with, 113–115
key resources, and business model reinvention
description of, 108–109
Dow Corning example of, 118
as element of a business model, 106, 110
Hilti example of, 113
identifying, 112–113
interrelationship of elements with, 113–115
key success factors, and competitive advantage, 21
Kim, W. Chan, 123–142
Kmart, 63
Kodak, 40
Komatsu, 150
Laliberté, Guy, 123
Larsen, Ralph S., 81
leadership
in high-performing companies, 227
lean production, 5
learning, and balanced scorecard, 169, 171, 173, 177, 185–189
learning organization, 6
Lewis, Spedan, 242
Lionel Leisure, 27
Liveris, Andrew, 225
L’Oréal, 140
Lost Arrow Corporation, 88
Lotus Notes, 5
Mahady, Joseph M., 240
Malcolm Baldrige National Quality Award, 89
management approaches
balanced scorecard and changes in, 170
decision-making roles and, 239
as key process, 109
shifts in productivity frontier and, 5, 6
management tools, versus strategy, 1–2
Mankins, Michael C., 209–228
Manufacturers Hanover Bank, 64
Marakon Associates, 211–212
marginal costs, and price competition, 58
margin model, in profit formula, 108
marketing, versus strategic position, 9
Martin, Karla L., 143–166
Mary Kay Cosmetics, 88
Mauborgne, Renée, 123–142
Maytag Corporation, 32
McKnight, William, 79
McNerney, Jim, 227
Merck, 62, 77, 79, 88, 91, 97, 100
mergers, and operational effectiveness competition, 6
metrics, in business model reinvention, 115, 121
Microsoft, 42, 50, 61, 73, 140
milestones, in balanced scorecard, 185
mission statements, 102, 194–195, 207. See also vision
Model T automobiles, 127, 130, 134, 140–142
monitoring performance, in high-performing companies, 224–226
motivation
balanced scorecard and, 179
envisioned future and, 99
motivators, in strategy execution, 144, 148, 151, 157, 158, 159, 166
Motley Fool, 202
Mulally, Alan, 225
music industry, 67–68
mutual fund industry, 12
Nano automobiles, 106, 107, 114, 116
National Jewish Health, 114
needs-based positioning, 12–14, 16
Neilson, Gary L., 143–166
Nelson, Admiral Lord Horatio, 192
Netflix, 56
network effects, as entry barrier to a new industry, 44
Neutrogena Corporation, 17–18, 32
new entrants to an industry
changes in industry structure and, 62–63
as competitive force affecting profitability, 41–50
framework for analyzing, 66–67
industry analysis of, 72
new product introductions, 56
newsletters, 178
norms, in business model reinvention, 115, 121
North American Industry Classification System (NAICS), 127
Norton, David P., 167–190
Novack, Ken, 202
objectives in balanced scorecard
change programs and, 184–185
communicating, 168, 169, 170, 172, 176–178, 186
goal setting and, 179–180
incentive systems and, 182
operational effectiveness (OE)
competitive convergence and, 7
differences among companies in, 2–3
Japanese companies and, 3–5, 7, 8
managers’ preoccupation with, 6
mergers and, 7
need for, 2–7
profitability and constant improvement in, 6–7
optimization of effort, and fit among activities, 24–25
organizational turmoil, and strategic principles, 199
overperformance, 227–228
outsourcing
decision-making roles and, 244–247
Pacific Theatres, 88
Packard, David, 78, 79, 81, 85–86, 92, 100–101
Palace theaters, 131
partnering, 1
Pepsi, 42
performance
operational effectiveness and, 1
rewards linked to, and balanced scorecard, 180–182
strategy and, 1 (see also high-performing companies)
Performance Improvement Drive, Dow Chemical, 225
performance monitoring, in high-performing companies, 224–226
perishability, and price competition, 58–59
Peterbilt brand, 66
pharmaceutical industry, 52, 62–63, 69, 100, 239–241
photographic film industry, 40
Pioneer Petroleum, 180
planning
balanced scorecard and, 183–185
high-performing companies and, 220–221
planning cycle, and continuity in strategic positioning, 27–28
Pond, Randy, 223
Porras, Jerry I., 77–102
Porter, Michael E., 1–37, 39–76, 221
positioning. See strategic positioning
Powell, Dennis, 223
Powers, Elizabeth, 143–166
price
industry analysis of productivity and, 51
new entrants to an industry and impact on, 41, 50
power of suppliers and, 50
profit pool expansion and, 73
rivalry among competitors and, 58–59, 69
price discounting, 56
price wars, 58
printing industry, 6–7
priorities, in high-performing companies, 223–224
private banking industry, 14
Procter, William, 81
Procter & Gamble (P&G), 77, 81, 115, 119
productivity frontier
description of, 3
improvements and outward shifts in, 5, 36
industry analysis of, 51
Japanese companies and, 3–5, 8
products, industry analysis and scope of, 70–71
profitability
competitive forces that shape competition and, 40–41
complementary products and services and, 61–62
constant improvement in operational effectiveness and, 6–7
defining an industry for analysis of, 70–71, 74
developing strategy and, 65
drivers of, 39–40
government policy and, 60–61
industry growth rate and, 60
industry structure changes and, 62–65
new entrants to an industry and threat to, 41–50, 62–63
redividing, by shaping industry structure, 68–73
return on invested capital (ROIC) measure of, 48, 49
rivalry among competitors and, 56–59, 64–65
substitute offerings and, 55–56, 63–64
technology and innovation and, 60
profit formula
description of, 108
designing, 112
Dow Corning example of, 117, 118, 119
as element of a business model, 106, 110
Hilti example of, 113
interrelationship of elements with, 113–115
profit pool
changes to industry structure and, 73–74
high-performing companies and, 221–222
purpose. See core purpose
quality
as core value, 81–82
power of customers over profitability and, 54
profit pool expansion and, 73
trade-offs in strategic positioning and, 19
Quebecor, 6
QuickBooks software, 112
Quicken software, 140
RJ Reynolds Tobacco Company, 96, 99, 100
R.R. Donnelley & Sons Company, 6
“Random Corporate Serial Killer” game, with corporate purpose, 89–90
rapid changeovers, 6
reconstructionist view, 138
Redmond, Cavan, 241
red oceans
blue ocean strategy compared with, 135, 136, 138
competition and, 125
growth of blue oceans and shrinking of, 128
meaning of term, 124
strategy paradox and, 127–129, 142
reengineering, 1
regulations
as entry barrier to a new industry, 47
industry profitability and, 60–61
reinforcement of activities, and fit, 22–24
reorganizations, 145
repositioning, in strategic positioning, 16
resource deployment, in high-performing companies, 222–223
resource velocity, in profit formula, 108
respect, as core value, 81
restrictions, as entry barrier to a new industry, 47
retail-banking industry, 64–65
retaliation, as entry barrier to a new industry, 47–50
return on invested capital (ROIC), as measure of profitability, 48, 49
revenue model, in profit formula, 108
rewards, in balanced scorecard, 180–182
rivalry among competitors, and profitability, 56–59, 64–65, 69, 74
Rockwell, 96
Rogers, Paul, 229–248
Rothapfel, Roxy, 132
Royal Navy, 192
rules, in business model reinvention, 115, 119, 121
SAP, 45
scale economies
blue ocean strategy and, 139
as entry barrier to a new industry, 44
Schaefer, George, 150–151
Sega, 8
self-service model in retailing, 11
Sheets, Don, 120
Skandia, 179
Skype, 56
Sony, 8, 62, 77, 79, 80, 81, 88, 92–93, 96, 99, 101
Sony Pioneer Spirit, 93
strategic positioning by, 8–9, 10, 13, 17, 20–21, 25, 27
strategic principles and, 193, 194, 199, 200–202, 204
Standard Industrial Classification (SIC) system, 127
Stanford University, 96
Starbucks, 43
statement
of core ideology, 92
of vision, 102
Stavropoulos, Bill, 225
Steele, Richard, 209–228
straddling, in strategic positioning, 16
strategic management system, 167, 168, 170, 174–175, 189–190. See also balanced scorecard
strategic planning, and balanced scorecard, 183–184
strategic positioning
access-based positioning and, 14–16
activity-system maps in, 23, 24, 25
broadening, 34
customer differences and, 16
deepening, 33–34
defining an industry for analysis in, 70–71
description of, 3
entrepreneurial edge and, 10
generic strategies and, 13
Ikea example of, 9–11
imitation in, 16–17
industry change and, 67–68
needs-based positioning and, 12–14
planning cycle and continuity in, 27–28
positioning the company and, 1, 65–67
repositioning in, 16
shaping industry structure by, 68–74
Southwest Airlines example of, 8–9
straddling in, 16
trade-offs in, 4, 13, 16–20, 27, 36
unique activities offered in, 8–11
variety-based positioning and, 11–12
strategic principles, 191–207
AOL example of, 202–203
Bain & Company case example of, 200–201
creating, 204–206
decentralization and, 197–198
decision making and, 193
defining attributes of, 194–195, 196–197
distillation of a company’s strategy into a phrase, 192–193
examples of results from using, 200–204
experimenting with boundaries and, 194, 196, 203–204
founders of companies and, 204
hallmarks of, 194–195
military analogy for, 192–193
mission statement versus, 194–195
organizational turmoil and, 199
rapid growth and, 198
rethinking, 206–207
situations requiring, 197–199
Southwest Airlines example of, 193, 200–202
technological change and, 198–199
testing action using, 194, 196, 202–203
trade-offs and, 194, 196, 200–202
Vanguard example of, 203–204
strategy
alternative views of, 29
approaches to growth to reinforce, 32–34
competitive forces that shape, 39–76
core purpose versus, 86
description of, 1–37
emerging industries and, 33
execution of (see strategy execution)
failure to choose and, 28–30
fit among a company’s activities and, 4, 20–28, 36
globalization and, 34
growth trap and effect on, 31–32
implicit strategy model of, 29
Japanese companies and, 8
management tools versus 1–2
operational effectiveness versus, 1–7, 29, 35
sustainable competitive advantage and, 29
technological changes and, 33
trade-offs in competing and, 4, 13, 36
unique activities in, 8–16
ways to reconnect with, 30–31
strategy execution, 143–166
building blocks of, 143–144, 157
creating a transformation program in, 157–166
decision rights in, 145, 146, 148–154, 157, 163–165
elements of, 147–156
example of, 144–147
fundamental traits of effectiveness in, 148, 152, 157
information flow in, 145, 146–147, 154–156, 161–162
levers used in, 145
mapping improvements to building blocks in, 157–158, 159
motivators in, 144, 148, 151, 157, 158, 159
organizational structure alterations in, 145
realignment of incentives in, 145
structure changes in, 144, 145, 148, 151, 157, 158, 159
strategy review, and balanced scorecard, 188–189
structuralist view, 138
structure changes, in strategy execution, 144, 148, 151, 157, 158, 159, 166
substitute offerings
as competitive force affecting profitability, 41, 43, 55–56, 63–64
industry analysis of, 72
success factors, and competitive advantage, 21
suppliers
as competitive force affecting profitability, 41, 43, 50–52, 63
industry analysis of productivity and, 51, 72
industry growth rate and, 60
profit pool expansion and, 73
shaping industry structure to neutralize power of, 69
sustainability, and fit among activities, 26–28
switching costs as entry barrier to a new industry and, 44–45, 53
supply-side economies of scale, as entry barrier to a new industry, 44
switching costs
as entry barrier to a new industry, 44–45
innovation and, 60
power of customers over profitability and, 53
rivalry among competitors and, 58
substitute offerings and, 41, 43, 55–56
Sysco, 70
Tata Group, 111
Tata Motors, 106, 111, 114, 116
teamwork, as core value, 81
technological change
strategic principles and, 198–199
strategy and, 33
technology
blue ocean strategy and, 126, 133
business model reinvention and, 116, 122
growth and, 128
as key resource, 108
supply-side economies of scale and, 44
technology pioneering, in blue ocean creation, 130–132
Telecare Corporation, 88
testing action, and strategic principles, 194, 196, 202–203
3M, 77, 79, 87, 88, 91, 210, 211, 227
Time Warner, 203
total quality management, 1, 6, 8
town meetings, 178
Toyota Motor Corporation, 20, 241
trade-offs
in blue ocean strategy, 135, 137
in strategic positioning, 4, 13, 16–20, 27, 36
strategic principles and, 194, 196, 200–202
transformation program in strategy execution, 157–166
building blocks in, 157–158, 159
example of, 158–166
testdriving, 162–163
translating the vision, in balanced scorecard, 168, 170, 172–177
U.S. Constitution, 207
U.S. Food and Drug Administration (FDA), 241
value chain
supply-side economies of scale and, 44
variety-based positioning and, 12
value pioneering, in blue ocean creation, 130–132
values. See core values
Vanguard Group, 12, 13, 15, 22, 24, 191, 194–195, 199, 203–204, 206–207
variety-based positioning, 11–12, 16
vision, 77–102
articulating, 82
BHAGs (Big, Hairy, Audacious Goals) and, 94–95, 96
core ideology and, 78–94
core purpose and, 85–90
core values and, 81–85
envisioned future and, 94–102
great companies with, 77–78, 79
Sony example of, 101
translating, in balanced scorecard, 168, 170, 172–177
vivid description
articulating a vision with, 82
description of, 95–98
as part of envisioned future, 80, 94
Vonage, 56
Wachovia, 65
Walt Disney Company, 81, 87, 88
Wal-Mart, 46, 63, 81, 88, 96, 100, 104, 139, 191, 199, 204, 244
Walton, Sam, 100
Washington Mutual, 65
Watkins-Johnson, 96
Welch, Jack, 205–206
We’ve Arrived Syndrome, 101–102
Whirlpool, 63
Wilson, Woodrow, 140
World Color Press, 6
Wyeth Pharmaceuticals, 239–241
Xiameter brand, 120–122
YouTube, 56
3.15.12.34