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Understanding the Delta Model for Service Strategy and Competitive Analysis, Study notes of Business Administration

The delta model is a strategic framework used to define profitable positions in the service industry. It consists of a strategic triangle, aligning strategic options with a firm's activities, and an adaptive process. Demographic data are insufficient for segmenting services consumed frequently, and transaction data plays a major role in identifying segments. The delta model includes the strategic triangle, which offers three strategic options: best product, customer solutions, and system lock-in. Aligning these strategic options with a firm's activities ensures congruency between strategic direction and execution through operational effectiveness, customer targeting, and innovation. The adaptive process focuses on aligning core processes with the chosen strategy to make progress against the strategic agenda and avoid a commodity-like outcome.

Typology: Study notes

2011/2012

Uploaded on 02/17/2012

sarika
sarika 🇮🇳

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DESIGN AND DELIVERY OF SERVICES
Strategy and Segmentation
Segmentation = Classification. Necessary to do Science
Segmentation: Demographic data are not sufficient when dealing with services that
are consumed with high frequency. In these cases data from transactions can play a major
role in identifying segments.
Competitive Analysis
• Delta Model and Porter‘s Five Forces are the basis for a good strategic analysis
Delta Model
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DESIGN AND DELIVERY OF SERVICES

Strategy and Segmentation

Segmentation = Classification. Necessary to do Science Segmentation: Demographic data are not sufficient when dealing with services that are consumed with high frequency. In these cases data from transactions can play a major role in identifying segments.

Competitive Analysis

  • Delta Model and Porter‘s Five Forces are the basis for a good strategic analysis

Delta Model