This is the basis to adjust the value chain and to rule these processes and interfaces which defines the competitive positioning against the rivals.

Of course it is necessary to stay flexible, placing continuously new ideas and improve operational efficiency. But this is not a replacement for a clear and determining strategy which is understood by the employees.

What is strategy? To that questions many answers are available. We define strategy as follows:

• the define a comprehensive approach how your company shall be positioned among the revivals

• join measureable targets with the competitive positioning and

• describe all activities for implementation

In the process to define competitive strategy we answer essential questions.

1. In which competitive environment is your company today (current rivals, potential new rivals, customers, suppliers and substitutes)?

2. Which implications have the current strategy (explicit or implicit defined), e.g. to price quality, profitability, market shares, etc?

3. Which generic strategy shall be implemented?

   1. Focus on niches

   2. Overall cost leadership

   3. Differentiation

4. Which decisions hat to be taken with regard to specialization, brand identity, market approach, sales channels, product quality, technology leadership, vertical integration, cost position, service and pricing policy?

5. Which product portfolio (existing and new) leads to more sales and profit?

6. Which markets can and shall be developed – until when?

7. Which capabilities, processes, functions and structures are required to support the product / market position?

8. How to design the value chain – where are interfaces critical to success and therefore process-fit necessary?

9. How and in which steps and activities can the strategy be implemented

To achieve long-term competitive advantage some decisions needs to be taken:

• How high can, must or may be the degree of specialization with regard to target clients, product lines or geographical markets?

• Is a brand identity helpful to reach long term customer relationships and high price quality?

• How shall the mix of brand identity be selected with direct access to end customers and use of distribution channels to boost sales?

• Which sales channels are to be chosen?

• Which product quality is requested, which weaknesses are forgiven, which requirements are a must?

• Is technological leadership necessary to reach or hold a competitive advantage or is a fast-follower or “copy”-strategy sufficient?

• How long or short is the value chain ideally – is it possible to create entry barriers via vertical integration?

• Which cost position needs to be reached? Which additional service features should be offered in addition to product sales?

• Which price policy and quality is enforcable?

Based on these decisions the whole value chain has to be individually designed and processes needs to fit to support the long-term position.