Initial Post – Our focus is choosing a strategic direction that will set your organization (Wendy’s) apart from competitors in a way that enables you to stand out from everyone else. Jack refers to this as “changing the game.
- Using Wendy’s, identify a potential game changing move that you believe will create a sustainable competitive advantage.
- Briefly summarize how the move will fundamentally shift the playing field to the Wendy’s advantage and beat the competition.
- Explain which of the three positioning categories described by Sherman (Breakaway, Reverse Positioning, Blue Ocean or Disruptive Innovation) best describes the move, and why.
- PART A – PLEASE RESPOND TO CLASSMATE DISCUSSION WHETHER YOU AGREE OR NOT & A DETAILED WHY: Identify an organization in your industry that used one of the seven common winning moves. The organization I choose was Morgan Stanley and how they acquired E-Trade. This will be the biggest bank takeover since 2008 (1). Which move did they use and why do you think they elected to use this move? The move they used was acquisitions and according to our lecture notes, one of the most dramatic and powerful ways to change the playing field is to acquire or merge with a competitor (2). As it stated in the article, I think they elected this move was to give Morgan access to digital native and emerging wealth (1). They see how the younger generation is into doing their banking online instead of going into a bank and E-Trade has the knowledge to give to Morgan so they can expand on this service. How effective was this move in establishing meaningful differentiation? I believe this was an effective move. In Sherman’s book it mentions that understanding consumer perceptions is the key to unlocking opportunities to service unmet needs and to differentiate product offerings (4). Morgan was having unmet needs by not having the knowledge to move forward in the digital world that would serve a new product for a new generation and for the future to come. By bringing E-Trade knowledge, Morgan is now able to gain what they need to so that they can move forward for new customers.
- PART B – PLEASE RESPOND TO CLASSMATE DISCUSSION WHETHER YOU AGREE OR NOT & A DETAILED WHY: Dollar Bank is a small bank based out of Pittsburgh that has been making some interesting strategic moves. They practiced geographic expansion into the Hampton Roads area of southeast Virginia. This is a good way to take what is working somewhere else and expand upon it as a proven growth method. Dollar Bank’s multi-pronged approach to expanding into Hampton Roads also had them buying the bank called “@lantec,” using the mergers, acquisitions, and strategic alliances strategy. Dollar Bank elected to pursue these strategies because M & M&A is an effective strategy for brick-and-mortar retail banks. The geographic expansion of building new branches helped secure their footprint in the new geographic area. Perceptual mapping is an interesting tool to see what consumers really want versus what an organization thinks they want. It was not easy to find marketing data, but some data has shown a convenient location as a factor that consumers look for. I think establishing multiple branches in a new location will help establish convenience. Dollar bank uses other strategies to meet perceptual mapping needs, such as virtual tellers. Even with most banking is done online today, some people feel better banking in person, particularly for large purchases or sensitive transactions.
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