This week¿s readings and lecture has been about strategy. This is quite important as we need to figure out our strategies for Mikes Bikes. Peter has explained a number of strategies over the past few weeks and while some of it has been really interesting, he has also mentioned quite a few things I¿d rather have on the down low. Over the past few weeks I¿ve been thinking about what strategy could work best and have been trying to predict what I think others will go into. This has been quite interesting as I¿ve thought of a number of scenarios and outcomes, I think that what will actually happen with the next roll over will be interesting and will probably surprise me quite a bit.
Kim and Mauborgne (2002) discuss 3 types of strategies that can be undertaken in order to succeed. The first strategic profile is focus where an organization will focus on specific things that they want to be great at (Kim and Mauborgne, 2002). For example, Apple focus on creating innovative products that people buy so they can belong to part of a group. The second strategic profile is divergence, this is where an organization creates something different to their competitors and that is their major selling point (kim and Mauborgne, 2002). For example, Zara, who excel in fast fashion where they release new clothes into their stores twice a week. Because the release only small amounts of clothes into their shops, people buy them as they are not available again and so the clothes are seen as rare. The last strategic profile is having a compelling tag line; an organization must have a tag line that fits in with their overall strategy (Kim and Mauborgne, 2002). For example, Nokia has the tag line ¿connecting people¿, this fits in with what they are trying to achieve with their products.
These strategies are important as they allow a company¿s brand to grow if done right. However, for Mikes Bikes I¿m struggling to come up with a strategy of focus or differentiation. There are only 5 segments that we can go into and with 6 teams these segments should be all entered within the next few roll overs. I feel like within a few weeks everything will all be muddled and a lot of strategy that people have been planning will be thrown out the window.
Overall, I¿m quite nervous about the roll overs ever since Peter announced that there is no longer going to be an offline mode to test decisions. During the practice I spent quite a bit of time going offline to roll over and see how specific decisions changed the outcome and so I¿m a bit anxious as to how good decisions will be now that we can¿t go offline. The good thing though is that all the other groups are in the same boat and so it¿s going to be interesting seeing how the other groups go as well.
Kim, W. C. & Mauborgne, R. (2002). Charting your company¿s future. Harvard Business Review, 80(6), 76--83