The purpose of this article is to elucidate a new framework of strategy known as the Delta model. A Delta model is a new strategy framework whose main purpose it to place a customer at the centre of management by scrutinizing the available primary options that can establish customer bonding and prescribe ways of linking strategies with execution through the alignment of adaptive processes.
Among the many paradigms that have been the competing schemes in the business strategy literature, competitive positioning and resource-based view paradigms have been the most fundamental. Competitive positioning was proposed by Michael Porter on the basis that structural characteristic of a firm’s industry explains the variations that occur in a firm’s performance. This theory shows that low cost and product differentiation are the only ways of competing. To shape a delta model, a business should establish customer bonding by having three strategic options that are usually placed in a triangle. Best product positioning at the right, total customer solutions at the left and system lock-in at the top of the triangle. The three strategic positions enable execution if all they are aligned correctly. Essential tasks of execution are only captured by business or adaptive processes like operational effectiveness, customer targeting and innovation. There are two key decisions in a business; business scope which determines where to compete and development of core competencies that determine the resources and capabilities needed to succeed. The two decisions form a business mission that strengthens the three strategic options. To understand the strategic implications of industry structure, five forces model must be considered. They include; the question of rivalry and the focus on the mentality of ‘winner take all’, the question of what industry structure should be analyzed, establishment of a strong competitive position that is environmental respondent, analyzing the proper integration of value chain in total consumer solutions and analyzing the whole industry in system lock-in option.
I feel that this article is useful in management of a business. It will help the managers come up with business strategies and that can easily be implemented. It will help the business thrive well despite the high competition that might emerge from its rivalries. The article is easy to understand because it is simple and on point. It is clear because the points stated have no ambiguity and it is very useful especially in a business that is growing.
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