By Constantinos Markides
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Extra resources for All the Right Moves: A Guide to Crafting Breakthrough Strategy
Traditionally, companies have defined their business according to the product they were selling. Thus, Ford was in the car business, Boeing was in the airplane business, and Philip Morris was in the cigarette business. " Levitt argued that a business that is defined by its product is too narrowly defined. He championed the notion that a company should define its business according to the customer function it is trying to fulfill. Levitt emphasized the importance of customers and encouraged companies to identify the underlying functionality of their products.
3. Because no position remains unique forever, established competitors must continually strive to discover new strategic positions in their business. If they don't do it, somebody else will. ) 4. Unfortunately, most established competitors are not good at seeking, let alone actually discovering, such new positions. Even though their success today can be traced back to an earlier decision to create a unique strategic position for themselves, they now expend little energy on such efforts. Instead, they spend most of their time trying to improve the position they already have.
Thus, even though all three competitors appeared to be in the same business, they were really operating under the influence of different definitions. Notice that I am not saying that one definition is better than the others; all three are feasible. The question is, what should Pegasus do given its adopted definition and the fact that it was losing market share? Pegasus could of course have decided to change its business definition and adopt one of the others on offer. ) However, the fact that other companies are playing the game in a certain way and winning does not mean that every company should play the game that way.
All the Right Moves: A Guide to Crafting Breakthrough Strategy by Constantinos Markides