This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/strategy-constellation-model-1578 BENEFITS OF DOCUMENT 1. Focused strategy and value proposition 2. Critical business systems and operations to support the strategy 3. Clear alignment of strategy and operations DOCUMENT DESCRIPTION The Strategy Constellation model is a framework for looking at both Value Proposition (top half of the model), which is what the customer experiences, and Business System (bottom half of the model), which is the company's internal workings required to create the value proposition.

1. The Strategy Constellation Model

2. 4
The Strategy Constellation Model
Additional Detail About Elements of the Model
• This is often the hardest element to complete
• It should specify which industry participants are the closest competitors, as well
as secondary competitors and potential competitors
• It should also reflect how an industry observer would describe the company’s
competitive position in the marketplace. For instance:
– Small, but rapidly growing
– Niche competitor; highly profitable
– Consolidator
– New entrant, bringing a different approach to the market
– One of three approximately equal-sized companies that dominate the
business
Competitive
Position
Competitive
Position
• Which customers will we pursue?
• Which will we not pursue?
• Often defined in characteristics that can be observed (i.e., size, demographics,
location)
• Sometimes defined in behavioral terms (e.g., validators, outsourcers)
Target MarketTarget Market
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/strategy-constellation-model-1578

3. 7
The Strategy Constellation Model
Additional Detail About Elements of the Model
• Should be described from the company’s perspective
• What sales infrastructure is required?
– Lead generation and tracking, databases and data mining
• What will be the selling approach (e.g., personal selling through highly
knowledgeable sales reps, phone reps, company-employed wholesalers selling
to independent distributors)
• What is the sales compensation structure (e.g., commissions, bonus)
SalesSales
• How will we publicize our product/service offering?
– Mass market advertising? Direct mail? Targeted advertising in a few
publications? Trade show exhibits?
• What sort of infrastructure do we need?
– Competitive intelligence
– Customer satisfaction and needs (surveys, focus groups)
• Marketing alliances?
MarketingMarketing
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/strategy-constellation-model-1578

4. 1
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