The Penta Model illustrates an integrative framework for Strategic Positioning, including all major Strategy Models. The Penta Model alpha includes 11 Strategic Choices for the Competing Factors (how-to-win). The Penta Model beta includes 11 Strategic Choices for the Market Boundaries (where-to-play). Read the LinkedIn Pulse article for the description of the Penta Model. https://www.linkedin.com/pulse/strategic-choices-strategy-models-mihai-ionescu

1. The Penta Model α
COMPETITIVE FACTORS
(how-to-win)
E. DISRUPTIVE VALUE
The customer is attracted by an
conceptually innovative product
or by a technology-enabled low
cost product of acceptable quality
A. BEST PRODUCT
The customer is attracted by
the characteristics of a
superior product
B. TOTAL CUSTOMER
SOLUTION
Provide a customized
solution to customer’s
most pressing needs
C. SYSTEM LOCK-IN
Establish dominance
in the market
E2. Disruptive Innovation
Cost-reducing technology or method
innovation that offers acceptable
quality to the customer, at low prices
E1. Conceptual Innovation
Conceptually new, higher value
product , with lower cost, and
attracting marginal customers
or nonconsumers
A1. Low Cost
Lowest-cost provider for an
undifferentiated product category,
allowing the lowest-price offering
A2. Differentiation
Development of features
and functionalities that
make the product unique,
commanding a premium price
B1. Customer
Intimacy
Provide a unique
experience to the
customer throughout
the complete cycle of
ownership
B2. Added Value
Transfer
knowledge to the
customer, in order to
enhance the product
value
B3. Horizontal Breadth
Satisfy all the meaningful
customer needs for related
products (one-stop-shop)
C1. Exclusive Channel
Significant barriers set in
place to make it difficult
for competitors to access
the customer
C2. Dominant Exchange
Set an interface between
buyers and sellers that is
difficult to displace once it
achieves critical mass
D1. Proprietary Standard
Capture an extensive set
of complementing products that
enhance the product value
Note: The A-C Strategic Positions and their included Strategic Choices are based on Arnoldo C. Hax’s Delta Model
© 2015 – Strategic Systems Consulting
D. PROPRIETARY ENABLERS
Control proprietary Standards, rare
Resources or Core Capabilities that
enable a unique value proposition D2. Core Resources or Capabilities
Gain ownership of rare Resources or
develop proprietary Core Capabilities
that enable a unique value proposition

2. The Penta Model β
MARKET BOUNDARIES
(where-to-play)
J. MARKET CREATION
Conceptually new markets
or future trend markets
F. MARKET FOCUS
Market segmentation, allowing a
customised targeting, according to specific
customer needs or buying behavior
G. CHANNEL FOCUS
Sales channel re-focus or
customers targeted by proximity
or buying convenience
H. DIVERSIFICATION
Collateral or substitute
products markets entry
J2. Future Market
Trend markets, formed by early
adopters of innovative products
(early mover advantage)
J1. Market Redefinition
Conceptually new markets,
targeting mainly marginal
customers or nonconsumers
F1. Needs Segmentation
Market segmentation based on
strategic groups demographics,
buying patterns or life styles
F2. High-End Market
High-value customers, demanding premium
products and customised seler-buyer relationships
F3. Long Tail
Large number of
price-sensitive and
low-value customers,
(commodity market)
G1. Proximity Market
Customer market defined by
the proximity to the sales
channel locations or by the
improved buying convenience
G2. Sales Channel Refocus
Customer re-definition for
better customer intimacy or
increased market penetration
H1. Collateral Market
Existing customers
targeted for new products,
displacing existing vendors
H2. Substitute Market
Adapted existing products
that substitute existing
ones, in a different industry
I1. New Domain/Industry
New domain/industry market entry,
with new products, leveraging a
corporate group or holding structure
© 2015 – Strategic Systems Consulting
I. NEW MARKETS
New local domains/industry entry
or international markets entry
I2. Internationalisation
New market entry in different geographies
with the same or localised products