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KimWarren

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Reply with quote  #1 
I was just asked how strategy dynamics Living Business Models contribute to the principles in 'Competing for the Future' [CftF] from Gary Hamel - this is about a great principle that has not been picked up as strongly as it should. It's what every new venture aims to achieve, and deserves more attention from established businesses who are failing to exploit the opportunities open to them.

Basically, the CftF principle is that there is some big potential market out there that is unserved, so competition is a race to see who captures that potential first. 
Strategy dynamics 'Living Business Models' make a very strong contribution to this concept. Many of our models have to include "potential customers" as a source from which active customers are won. This is explained in chapter 7 of Strategy Dynamics Essentials as 'type-1 rivalry'. 
 
There is a very simple demo of this mechanism, with two new restaurants competing for a local market at sdl.re/BMrestaurant7a [exactly how this model for a single restaurant is built and works is explained in the free intro course at https://strategydynamics.com/modeling-getting-started/]. A more complex example about the launch of a consumer tec-product is at http://sdl.re/tec2product.

More grown-up cases are everywhere - I just spoke with a pharma marketing lead whose new products always face this challenge [how to capture potential prescribers and thus access the potential patients they bring] ... but when her products go off-patent, all of her prescribers and patients become potential for other rivals to compete for to grow their future sales.
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