Scribd
Upload
54 views11 pages

Understanding the Strategy Diamond Model

This document introduces the Strategy Diamond Model, which provides a simple way to show how the different parts of an organization's strategy fit together. The Strategy Diamond Model outlines five major elements of strategy: 1) Arenas, 2) Vehicles, 3) Differentiators, 4) Staging, and 5) Economic Logic. It then provides examples of how IKEA and BPI have used the Strategy Diamond Model elements in their own strategic approaches. The document concludes that specific strategic tools help narrowly define strategy, and that strategies must be dynamic to avoid failures experienced by companies like Xerox and Kodak due to a lack of strategic adaptation.

Uploaded by

bramanti setiadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
54 views11 pages

Understanding the Strategy Diamond Model

This document introduces the Strategy Diamond Model, which provides a simple way to show how the different parts of an organization's strategy fit together. The Strategy Diamond Model outlines five major elements of strategy: 1) Arenas, 2) Vehicles, 3) Differentiators, 4) Staging, and 5) Economic Logic. It then provides examples of how IKEA and BPI have used the Strategy Diamond Model elements in their own strategic approaches. The document concludes that specific strategic tools help narrowly define strategy, and that strategies must be dynamic to avoid failures experienced by companies like Xerox and Kodak due to a lack of strategic adaptation.

Uploaded by

bramanti setiadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Strategy Diamond Model

Presented By :
Bramanti Setiadi (2001878501)
Donny Jesaya Hifi (2001884896)
Izma Dwi Ariesta Toana (2001903604)

Magister Management Executive Strategic


Management
Bina Nusantara Business School
09/06/2023 Indonesia Strategy Diamond Model
What is Strategy?
• Strategy is not only the primary planning but
is about the intentional, informed and
integrated choices .
• It is because unexpected opportunities need
• Not be ignored if its out of planning.

09/06/2023 Strategy Diamond Model


Issues
• Strategy has become a catchall term used to mean what ever plan in
business.
• What are the factors that constitutes a strategy?
• Do industry analysis , technology cycles, value chains and more
competencies among others improves soundness of strategy?
• Is your strategy implementable?
• Matching of resources and strategy

09/06/2023 Strategy Diamond Model


Strategy Diamond Model
• A Strategy Diamond provides a simple way to show
how the different parts of an organization’s strategy
fit together.
• • What’s interesting about these strategies is that
they are not actually strategies. Rather, they are
components of a strategy. The word strategy comes
from the Greek strategos, which means “the General’s
art.” In essence, strategy is the orchestration of the
whole to achieve a goal, which in the case of a general
is to win the war

09/06/2023 Strategy Diamond Model


Strategy Diamond Model

09/06/2023 Strategy Diamond Model


Strategy Diamond Model
Where will we be
active (and with how ARENAS How will we get there?
Internal development? Joint
much emphasis)? ventures? Licensing/Franchising?
Alliances? Acquisitions?
Which product categories? Which
channels? Which market ECONOMIC
VEHICLES
segments? Which geographic
areas? Which core technologies?
Which value-creation strategies?
LOGIC

STAGING
DIFFERENTIATORS
What will be our speed
and sequence of moves How will returns be How will we win?
Speed of expansion? Sequence of
initiatives?
obtained? Image? Customization? Price?
Styling? Product Reliability? Speed
Lowest costs through scaleto Market?
advantages? Lowest costs through
scope and replication advantages?
Premium prices due to
unmatchable service? Premium
prices due to proprietary product
features?

09/06/2023 Strategy Diamond Model


5 Major Elements of Strategy
1. Arenas ( product category, market segment, geographic areas, core
technologies, value creation stages)
2. Vehicles( Internal development, joint ventures, licensing, franchising,
acquisitions)
3. Differentiators (Image, customizations, price, styling reliability)
4. Staging ( Speed of expansion, sequences of initiatives)
5. Economic Logic (Lower cost due to mass production, unmatchable
services, product features )

09/06/2023 Strategy Diamond Model


IKEA’s Strategy

09/06/2023 Strategy Diamond Model


BPI’s Strategy

09/06/2023 Strategy Diamond Model


Analysis

 Specific Strategic Tools make narrow strategic definition.


 The executives should not create confusion.
 Compensation policies, information systems, training programs do
not make strategy itself but supports.
 Xerox, Kodak are lost due to lack of strategy.
 Strategy need not be static.
)

09/06/2023 Strategy Diamond Model


09/06/2023 Strategy Diamond Model

You might also like