Strategic Inflection Points

Strategic Inflection Points are subtle changes in the environment. If one is not able to monitor or identify subtle signals such as New Emerging Technology or Shifts in Consumer Behavior, much before competition , one may find one’s  products and services becoming redundant and obsolete in the market place.

Strategic Inflection Points generate Early Warning, which if not interpreted correctly in context to implications it can have in your industry or organisation, your intelligence is not competitive or it would be appropriate to say that your intelligence will not be actionable.

Strategic Inflection Points can occur because of New Emerging Technology which may not be the new emerging technology in your sector or industry but it could be a new emerging technology that may be acquired or lets say adapted by your competition.

Strategic Inflection Points occur because of subtle shifts  that may occur in the macro environment or in the micro environment.

The purpose of Five Force Analysis or SWOT Analysis or  Six Force Analysis or Value Chain Analysis or Benchmarking Analysis or Service Triangle Analysis etc., is to be able to analyse information and using competitive intelligence generate Early Warning.

The subtle signals have to be monitored and implications need to be drawn.

STRATEGIC INFLECTION POINTS – FOUNTAIN PENS

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By 1900, the main principles for a successful fountain pen had been established:

1. A reservoir for ink.

2. A filling system.

3. A method of supplying ink to the nib.

Finding the most successful challenge, with 3 American companies – Parker, Waterman and Sheaffer – dominating the market. The design of the fountain pen has not relied solely on the demands of engineering, for aesthetics have also played an important role. The look of a fountain pen, its size, weight, color, and the materials used in its construction all contribute to its success.

Despite the ascendancy of the cartridge pen and ball point pen and gel pen, the nostalgic tastes of a fountain pen ensure the desirability of the fountain pen both as collectible item and functional tool.

1. Waterman Eye-dropper – 1903

2. Parker Lucky Curve – 1916-23

3. Conklin Crescent Filler – 1923

4. Parker Pearly Vacumatic – 1935

5. Parker 51 – 1948

6. Parker 61 – 1956

7. Sheaffer Pen for Men – 1960

8. Montblanc 149 Masterpiece – 1970

9. Parker 180 – 1980

10. Parker Duofold [1929] – 1994

Let us now look at Strategic Inflection Points of the Jukeboxes:

STRATEGIC INFLECTION POINTS – JUKEBOXES

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Coin-in-the-slot music machines were already well established by the time the golden age of the jukebox dawned in the 1940s. While the designers of this era such as Paul Fuller, are particularly revered, design aficionados are beginning to play closer attention to the two decades that followed.

The machines of the rock ‘n’ roll era – with which the jukebox has become synonymous – scream teenage rebellion with their blatant use of flashy automobile looks. The bold, bright colors of these classics are probably the first thing to cross most peoples minds on hearing the word “jukebox”.

1. Polyp hon – 1900

2. Wurlitzer 1100 – 1948

3. Wurlitzer 1800 – 1955

4. Se burg KD200 – 1957

5. Rock-Ola Tempo 1475 – 1959

6. Rock-Ola Reg is 1495 – 1961

7. Ami Continental 2 – 1961

8. NSM Nostalgia Gold – 1995

Motorcycles had various Strategic Inflection Points because of New Emerging Technology:

STRATEGIC INFLECTION POINTS – MOTORCYCLES

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Designers continue to exploit the latest materials and technology to enhance performance and provide a safe ride.

1. Werner – 1901

2. Excelsior 20R – 1912

3. BMW R32 – 1923

4. Megola Racing Model – 1923

5. Harley – Davidson Knucklehead 61EL – 1936

6. Triumph Speed Twin – 1939

7. Indian Chief – 1947

8. Vincent Black Shadow Series C – 1949

9. Honda 50 Super Cub – 1958

10. Honda CB750 – 1969

11. Harley – Davidson Evolution FLTC Tour Glide Classic – 1989

12. Kawasaki ZZ-R1100 – 1990

13. Husqvarna TC610 – 1992

Remember the good old fashioned Vinyl Disc which is now being threatened by Digital Technology:

STRATEGIC INFLECTION POINTS – MUSIC SYSTEMS

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Today, the digital technology threatens the vinyl disc with obsolescence.

1. Graphophone – 1900

2. Pathe gramophone – 1908

3. Selecta portable – 1920s

4. Bermuda Dansette – 1950s

5. Braun Phonosuper SK55 – 1956

6. Beogram 4000 – 1972

7. Philips compact disc player – 1983

8. Denon Stacking System D-90 – 1995

9. Beosound 9000 – 1999

Toothbrushes, so common, yet face Strategic Inflection Points due to shift in Consumer patterns:

STRATEGIC INFLECTION POINTS – TOOTHBRUSHES

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1. Early Toothbrushes – 1900s

Bone Handle + Natural bristles

2. Plastic toothbrushes – 1930s-40s

3. Radius – 1984

4. Modern toothbrushes – 1980s-90s

Designers now compete over the details:

A. Most eye-catching colors
B. Most comfortable grip
C. The optimum angle and reach
D. The best bristle combination

5. Fluocaril – 1989

6. Electric toothbrush – 1990

Dolls, a girl child’s best friend had the following Strategic Inflection Points:

STRATEGIC INFLECTION POINTS – DOLLS

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1. Schilling doll – 1900

2. Kewpie – 1913

3. My Dream Baby – mid 1920s

4. Tyrolean dolls – early 1950s

5. Barbie – 1959

6. Barbie “Airline Stewardess” – 1963

7. Action Man – 1964

8. Cabbage Patch Kid – 1983

9. Baby Born – 1991

10. Barbie “Happy Holidays” – 1990s

We grow up with Toys and Models, Strategic Inflection Points here were:

STRATEGIC INFLECTION POINTS – TOYS & MODELS

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1. Magic Lantern – 1900

2. Noah’s Ark – 1900

3. Clockwork ship – 1904

4. Steiff teddy bear – 1905

5. Meccano – 1910

6. Hornby train set – 1920s

7. Dinky cars – 1930s

8. Scalextric – 1950s

9. Robby the Robot – 1956

10. Lego – 1958

11. Star Trek – 1977

12. Transformer robot – 1980s

13. Thunderbirds – 1992

14. Playmobil 1 2 3 – 1990s

15. Power Rangers – 1994

16. Tamagotchi – 1996

17. Teletubbies – 1997

18. South Park – 1997

Guitars, the good old fashioned Acoustic faced Strategic Inflection Points due to New Emerging Technology:

STRATEGIC INFLECTION POINTS – GUITARS

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1. Gibson Style O – 1908

2. National Style O – 1926

3. Rickenbacker Electro Spanish – 1932

4. Gibson Les Paul Gold Top – 1952

5. Fender Stratocaster – 1954

6. Gibson Double – 12 – Late 1950s

7. Stienberger Bass – 1982

8. Ibanez – 1990

Wristwatches, so common, faced the following Strategic Inflection Points:

STRATEGIC INFLECTION POINTS – WRISTWATCHES

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1. Oris Big Crown – 1910s

2. Waltham – 1920

3. Cocktail watch – 1930

4. Bulova Accutron – 1960

5. Oyster Perpetual – 1965

6. Speedmaster – 1969

7. Lasser digital – 1970s

8. Gold watch – 1970s

9. Casio digital – 1990s

10. Seiko Kinetic – 1990s

11. Omega Seamaster – 1995

The Automobile Industry faced the following Strategic Inflection Points in Cars:

STRATEGIC INFLECTION POINTS – CARS

————————————-..

Few things map the development of design better than a car.

1. De Dion – Bouton Model Q – 1903

2. Model T Ford – 1908

3. Rolls Royce 40/50 – 1907

4. Citroen Traction Avant – 1934

5. Auburn 851 Speedster – 1935

6. Volkswagen Beetle – 1939

7. Citroen 2CV – 1948

8. Bentley R-type Continental – 1952

9. Mercedes – Benz 300SL – 1954

10. Fiat 500 – 1957

11. Buick Roadmaster – 1957

12. Cadillac Eldorado Convertible – 1959

13. Chevrolet Impala – 1960

14. Citroen DS – 1960

15. E-Type Jaguar – 1961

16. Volvo P1 800 – 1961

17. Porche 911 – 1963

18. Ford Mustang – 1964

19. Pontiac GTO – 1964

20. Ferrari Dino 246GT – 1969

21. Mazda RX7 – 1978

22. Volkswagen Golf GTi – 1976

23. Audi Quattro Sport – 1983

24. Renault Espace – 1984

25. Ford Ka – 1999

The Perfume Industry faced the following Strategic Inflection Points. Certain perfumes have lasted over 8 decades and are as fresh as ever. Credit goes to New Emerging Technology.

STRATEGIC INFLECTION POINTS – PERFUME

—————————————–..

1. L’heure bleue – 1912

Blend of roses, irises, vanilla and musk.

Positioned as Romantic perfume.

The Baccarat glass bottle reflects this romanticism. Art Nouveau swirls at the shoulders of the bottle and delicately drawn label, the design suggests sensuality.

2. Chanel No 5 – 1921

Remains the essence of Simplicity.

It is square, with a plain wedge stopper and a minimal white label.

9 stages involved in sealing the fragrance in the bottle, including the placement of the wax-drawn CC at the neck.

3. Zenobia – 1924

The design of this bottle is resonant of nostalgia for the 19th century.

Every element is intended to suggest a sweet, natural, floral fragrance, from a rather syrupy name, Sweet Pea Blossom, to the combination of pastel colors used on the label and the pink bow tied around the neck of the bottle.

4. Jabat – 1939

The stopper is finished in the shape of a knotted bow and the base of the bottle resembles the skirts of a petticoat fanned out across the floor.

5. Jean Paul Gaultier – 1993

The perfume is molded in the shape of a woman’s torso, pinched and pushed into shape by a corset.

6. DNA – 1993

The bottle is shaped like the double helix form of DNA.

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www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Internal Environment Analysis

Internal Environment Analysis

Do we / competitors have a powerful strategy
What core competence do we / competitors have
How is our product strongly differentiated from that of our rivals
Are our competencies and capabilities well matched to industry key success factors
Do we / competitors have a strong brand name
What is the company’s reputation
How does our technology, technical skills compare to competitors
Do we have a cost advantage over rivals
What are our / competitors product innovation capabilities
What is our / competitors supply chain management capability
Where do we stand versus competitors with regard to customer service
How does our product quality compare to rivals
Do we / competitors have alliances or joint ventures with other organizations that provide access to valuable technology, markets or creates a synergy in our competencies
Are we / competitors serving additional customer groups or market segments
Are we / competitors partially / fully integrated
Is there a likely entry of potential new competitors in our market segments
How effective is the substitution effect in the industry
Is there a shift in buyer needs away from our products
Are there any adverse demographic changes that curtail demand for our product / services
Are there restrictive trade policies on behalf of foreign governments
Are there expensive new regulatory requirements

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Corporate Risks

Macro Risks of Globalisation [ Domino Effect ]

1. Retrenchment from globalisation
2. Oil & Gas spike
3. Infectious diseases in the Developing world
3. Trans-national crime and corruption
4. Chronic diseases of the Developed world
5. Middle East instability
6. Heatwaves and droughts
7. Natural catastrophe : cyclone, earthquake, extreme inland flooding
8. Interstate and civil wars
9. Fiscal crisis in advanced economies
10. Food insecurity
11. Failed and failing states
12. International Terrorism
13. Loss of fresh water
14. Collapse of NPT
15. Emergence of Nanotechnology risks
16. Extreme climate change
17 Liability regimes
18. etc.,

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Mergers & Acquisitions

Mergers & Acquisitions presents CORPORATE RISKS which has to be mitigated.

Success of merger / acquisition depends how we have actually prepared at:

1. Pre Merger stage
2. Post Merger stage

Pre Merger stage:

Here compatibility issues need to be addressed under :

A.Courtship phase
B. Evaluation and Negotiation phase

While we are looking at compatibility issues at during Courtship phase, have we looked at compatibility between the vision and objectives, have we been able to build and reinforce personal and business relationships.

Once we find a common ground ie we have compatibility ie we share vision and objectives that we may like to proceed to Evaluation phase and Negotiation stage where we need to undertake due diligence and evaluate the cost/benefit of the merger/acquisition besides understanding the regulatory clearancesrequired for the new project.

Once the Merger/ acquisition has taken place , we may like to look at Issues which need to be addressed under:

A. Immediate Transition phase
B. Transition phase

Immediately after the merger / acquisition, Issues such as New appointments need to be made, list of Redundancy announcements need to be made, Restructuring of the various departments need to be done to make the organisation an agile corporation and Divestment needs to be considered based on BCG matrix.

In Transition phase, we need to Fine Tune the organisation further to enable the organisation to remain lean and agile.

Further re-structuring and job transfer need to be done to get the right fit.

We cannot ignore Cross-Cultural differences which are the Nemesis of many a mergers.

Why mergers acutally fail is because of a clash of corporate cultures

Have we addressed the cultural incompatibilities
Was cultural due diligence done correctly
Did we undertake cultural audit
Did we create Knowledge maps

And when we fail to predict the dissonance which will arise in Corporate Matchmaking because of the dissonance in organisation structures, problems will arise.

Dissonance in Beliefs, Values, Norms and Behavior is the main reason why mergers fail.

Further, were similarities and differences assessed, do organisations have mutual respect for each other, do they acknowledge professional and individual competence, business capability etc.

Is there a dissonance between hopes & expectations, vision statements, mission statements etc.,

What synergies exist

Is there trust in discussing difficult issues and handling conflict

Is there commitment by both parties to succeed, 99% mergers fail because all you did was financial due diligence. Have you looked at the dissonance between vision and strategic objectives and goals of both companies.

Further the External environment is Quicksilver

To handle multiple Quicksilver environments , this is why we require OODA loop and Competitive Intelligence.

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Key Intelligence Topics

I. Assessment of Strategies

A. Focused Differentiation
B. Best Cost
C. Differentiation
D. Low Cost
E. Focused Low Cost
F. Market Skimming
G. Market Penetration
H. Related Diversification
I. Unrelated Diversification
J. Backward Integration
K. Forward Integration
L. Horizontal Integration

II. Consumer Perceptions

A. Negative Moment of Truth
B. Positive Moment of Truth
C. Usage
D. Attitude
E. Image
F. Market Segmentation
G. Customer Satisfaction
H. Brand Recall
I. Purchase Decision
J. Brand Association
K. Value Creation
L. Lifestyle
M. Personality
N. Product Attributes
O. Country of Origin

III. Current Operations

A. Value Chain Analysis
B. Benchmarking Analysis
C. Five Force Analysis
D. Brick & Click Strategy

IV. Competitor Capabilities

A. OODA Loop
B. Offensive Maneuvers
C. Defensive Maneuvers
D. Flanking Maneuvers
E. Guerilla Maneuvers

V. Evaluation of Market Life Cycle

A. Market Crystallisation
B. Market Expansion
C. Market Fragmentation
D. Market Consolidation
E. Market Dissolution

VI. Service Triangle Interplay

A. Service Strategy
B. Systems & Procedures
C. People of the Organisation
D. Service Strategy – Customer – People of the Organisation
E. Systems & Procedures – Customer – People of the Organisation
F. Systems & Procedures – Customer – Service Strategy
G. Service Strategy – Systems & Procedures – People of the Organisation

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Hostile Takeovers – Are we ready?

When a Corporate Raider attempts a hostile takeover of an organisation, we need to understand the interplay in the Quicksilver environment:

Are we ready for the Black Knight, was OODA loop in place. How did the Black knight identify breach in the Moat. Did we not monitor closely the Bull & the Bear runs.

In our search for the White Knight, are we mistaking the Yellow Knight and the Gray Knight as the White Knight.

Further when a Corporate Raider attempts Greenmailing or hostile takeover threat still persists, can we use Killer Bees option or can we use Poison Pill or Suicide Pill.

Maybe using RBV a competitor may strike at the heart of the organisation.

Is there a substitute of competitive intelligence, not really. But then where did we falter using the OODA loop.

If the Black Knight uses Greenmailing tactics, perhaps we can get a breather. But what if the Corporate Raider is a wolf in sheep’s clothing, do we have an Early Warning system in place to identify the threat?

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Competitive Environment Analysis

To generate Competitive Intelligence we need to get clarity of the Competitive Environment in which the organisation operates :

1. Economic Features

We need to identify and analyse the most important economic features of the industry in which the organisation operates in.

2. Competitive Forces

We need to identify and analyse multiple competitive forces which industry members are facing and assess the strength of each force

3. Changes – Competitive Intensity – Industry Profitability

We need to identify and assess forces that are driving change in the industry where the organisation operates and assess the impact of these changes on competitive intensity and industry profitability.

4. Positioning

We need to identify and assess what market positions our competitors in the industry occupy.

5. Strategic Maneuvers

We need to identify and assess what strategic maneuvers are competitors likely to make NEXT.

6. Key Success Factors

We need to identify and assess Key Success Factors for on which future competitive success of the organisation depends.

7. Industry Outlook

We need to identify and assess whether the outlook for the industry presents the organisation with suitable and feasible prospects for profitability.

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Key Success Factors

Key Success Factors for Future Competitive Success

Key Success Factors [KSFs] could be:

1. Product attributes
2. Competencies
3. Competitive capabilities
4. Market achievements

Having greatest impact on future competitive success in the markets.

1. It could be technological expertise or scientific research in high technology industries such as pharmaceuticals or telecommunications.

2. It could be proven ability of an organisation to develop its production process where new emerging technology results in the organisation attaining higher manufacturing efficiency and achieve reduced production costs.

3. It could be an ability of an organisation to achieve economies of scale and through learning curve effects.

4. It could be quality control expertise

5. It could be high utilisation of fixed assets

6. It could be access to skilled workforce

7. It could be higer labor productivity

8. It could be achieving lower costs in product design and engineering

9. It could be an ability of an organisation to provide tailor made solutions.

10. It could be a strong distribution network

11. It could be strong sales and marketing capability of an organisation

12. It could be depth in organisation’s product line or product selection

13. It could be its brand name

14. It could be its timely technical assistance to customers

15. It could be customer service

16. It could be product innovation capability

17. It could be design expertise

18. It could be quicker delivery time capability

19. It could be logistics and supply chain management capability

20. It could be strong e-commerce capability

21. It could be suitable locations

22. It could be patent protection.

These are some of the Key Success Factors on which the future competitive success of an organisation depends.

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Strategic Inflection Points – Perfume

STRATEGIC INFLECTION POINTS – PERFUME

1. L’heure bleue – 1912

Blend of roses, irises, vanilla and musk.

Positioned as Romantic perfume.

The Baccarat glass bottle reflects this romanitcism. Art Nouveau swirls at the shoulders of the bottle and delicately drawn label, the design suggests sensuality.

2. Chanel No 5 – 1921

Remains the essence of Simplicity.

It is square, with a plain wedge stopper and a minimal white label.

9 stages involved in sealing the fragrance in the bottle, including the placement of the wax-drawn CC at the neck.

3. Zenobia – 1924

The design of this bottle is resonant of nostalgia for the 19th century.

Every element is intended to suggest a sweet, natural, floral fragrance, from a rather syrupy name, Sweet Pea Blossom, to the combination of pastel colors used on the label and the pink bow tied around the neck of the bottle.

4. Jabat – 1939

The stopper is finished in the shape of a knotted bow and the base of the bottle resembles the skirts of a petticoat fanned out across the floor.

5. Jean Paul Gaultier – 1993

The perfume is moulded in the shape of a woman’s torso, pinched and pushed into shape by a corset.

6. DNA – 1993

The bottle is shaped like the double helix form of DNA.

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program

Strategic Inflection Points – Cars

Strategic Inflection Points – Cars

Few things map the development of design better than a car.

1. De Dion – Bouton Model Q – 1903

2. Model T Ford – 1908

3. Rolls Royce 40/50 – 1907

4. Citroen Traction Avant – 1934

5. Auburn 851 Speedster – 1935

6. Volkswagen Beetle – 1939

7. Citroen 2CV – 1948

8. Bentley R-type Continental – 1952

9. Mercedes – Benz 300SL – 1954

10. Fiat 500 – 1957

11. Buick Roadmaster – 1957

12. Cadillac Eldorado Convertible – 1959

13. Chevrolet Impala – 1960

14. Citroen DS – 1960

15. E-Type Jaguar – 1961

16. Volvo P1 800 – 1961

17. Porche 911 – 1963

18. Ford Mustang – 1964

19. Pontiac GTO – 1964

20. Ferrari Dino 246GT – 1969

21. Mazda RX7 – 1978

22. Volkswagen Golf GTi – 1976

23. Audi Quattro Sport – 1983

24. Renault Espace – 1984

25. Ford Ka – 1999

www.corporaterisks.info

Advisor, Corporate Risks

riskmitigator@yahoo.com

Assistant Professor, MBA Competitive Intelligence & Corporate Warfare program