Introduction to Strategy:

-> DEF: Long-term plan that identifies a scope and a direction for the company that aims to achieving and sustaining performance superior to the competitors.

The Value:

How create value?

VALUE PROPOSITION: a selected bundle of products and/or services targeting a group of customers and satisfying well-defined needs.

-> There are three APPROACHES:

1.TECHNOLOGY-DRIVEN APPROACH: innovation driven by product design and manufacturing. In the end presented to customers.

-> Market don’t affect directly the value generation process;

-> Marketing is involved only in  the last steps of value generation;

-> Product presented to customers after it’s realization;

2.MARKET-DRIVEN APPROACH: find customers’ needs and target market characteristics:

-> Establishing connection between marketing and strategy;

3.CUSTOM TO-CREATING APPROACH: company identify a customers needings and is help from them to design the product.

-> Focus WHERE create Value:

• BUSINESS AREA (BA): Homogeneus and defined set of competitors offering a similar value propositions to satisfy a homogeneous set of customers’ needs.
• STRATEGIC BUSINESS UNIT (SBU): The part of company that operates in and serves a given business area.

Levels of Strategy: