The Competitive Strategy Portraits

Description

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

q  Our resource portfolio allows us to create unique customer value and serve our target markets better than our competitors.

q  Our resource portfolio allows us to innovate better than our competitors.

q  Our activity system allows us to create the unique customer value and serve our target markets better than our competitors.

q  Our activity system allows us to innovate better than our competitors.

q  Our value system allows us to create the unique customer value and serve our target markets better than our competitors.

q  Our value system allows us to innovate better than our competitors.

1.5 Worksheet

Competitive Strategy Portraits Map: Mapping (Worksheet 5)

Please evaluate the firm’s strategy portraits vis-a-vis your competitors’.
1.5.1 Competitive Strategy Portraits Map: Mapping (Worksheet 5)
Please evaluate the firm’s strategy portraits vis-a-vis your competitors’.