Deciding Where to Play
Defining what “where” means?
• Deciding where to play is the decision about “which jobs you will
do for your customers” and “which jobs you won’t”
2
The decision about where to play demands
tradeoffs
• Be worst-in-class on attributes that are least important to the job
you are doing so you can free up the resources to be best-inclass on the attributes that matter most
3
When
And this
toodecision
many companies
requires the
follow
courage
the herd,
to
things
break away
don’tfrom
end well
the herd
4
The decision about where to play becomes
even more important as competition intensifies
5
Effective “where to play” decisions answer 3
important questions
What jobs can we be best
in the world at doing?
6
Effective “where to play” decisions answer 3
important questions
What jobs can we be best
in the world at doing?
What jobs can we do
profitably?
7
Effective “where to play” decisions answer 3
important questions
What jobs can we be best
in the world at doing?
What jobs can we do
profitably?
What jobs are we
passionate about doing?
8
Examples of companies that have made
effective decisions about “where to play”
Company
Best in world
at doing
Profitable
business
Passionate
about doing
Providing low cost,
reliable air travel
between mid-sized
cities and large cities
x
x
x
Building stylish, low
cost furniture and
home accessories
x
x
x
Delivering fast, low
cost oil changes
x
x
x
Where to play
Strategy
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Attribute map for the airline industry
Most important to
price sensitive
travelers
Low prices
Friendly service
On-time arrivals
Frequent departures
Fast transport
Convenient airports
Extensive network
Least important to
price sensitive
travelers
On-board amenities
0
1
2
3
4
5
Relative performance of firm
Southwest
* Uncommon Service, Frances Frei, Anne Morriss, 2012
Full-service airlines
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Attribute map for the airline industry
Most important to
price sensitive
travelers
Low prices
Friendly service
On-time arrivals
Frequent departures
Fast transport
Convenient airports
Extensive network
Least important to
price sensitive
travelers
On-board amenities
0
1
2
3
4
5
Relative performance of firm
Southwest
* Uncommon Service, Frances Frei, Anne Morriss, 2012
Full-service airlines
11
Attribute map for the furniture industry
Most important to
customers seeking
style @ low cost
Ability to change
One-stop shopping
Self-serve independence
Self service
Fun destination
Durability
Assembly
Sales assistance
Least important to
customers seeking
style @ low cost
Location
0
1
2
3
4
5
Relative performance of company
* Uncommon Service, Frances Frei, Anne Morriss, 2012
Ikea
Traditional retailers
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Attribute map for the furniture industry
Most important to
customers seeking
style @ low cost
Ability to change
One-stop shopping
Self-serve independence
Self service
Fun destination
Durability
Assembly
Sales assistance
Least important to
customers seeking
style @ low cost
Location
0
1
2
3
4
5
Relative performance of company
* Uncommon Service, Frances Frei, Anne Morriss, 2012
Ikea
Traditional retailers
13
Examples of unsuccessful “where
to play” decisions
Examples of companies that made
unsuccessful “where to play” decisions
Company
Where to play
Strategy
Best in world
at doing
Profitable
business
Passionate
about doing
Build and service
high performance
computer servers
Manufacture car that
is easy to park
Provide mobile
phone service
anywhere in the
world
x
x
15
Examples of companies that made
unsuccessful “where to play” decisions
Company
Where to play
Strategy
Best in world
at doing
Profitable
business
Passionate
about doing
Build and service
high performance
computer servers
Manufacture car that
is easy to park
Provide mobile
phone service
anywhere in the
world
x
x
16
Examples of companies that made
unsuccessful “where to play” decisions
Company
Where to play
Strategy
Best in world
at doing
Profitable
business
Passionate
about doing
Build and service
high performance
computer servers
Manufacture car that
is easy to park
Provide mobile
phone service
anywhere in the
world
x
x
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Summary
• One of the most critical strategic imperatives is the decision about
where to play
• The decision about where to play is the decision about “which jobs you’ll
do for your customers” and “which jobs you won’t”
• This decision demands tradeoffs, requires courage to ignore the herd
and becomes even more important as the level of competition intensifies
• Effective “where” decisions must answer three fundamental questions:
– What jobs can you be best in the world at doing?
– What jobs can you do profitably?
– What jobs are you passionate about doing?
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