Please wait while the transcript is being prepared...
0:00
I'm Shahid Zaki,
former CEO of
Philips Pakistan and
I teach Strategy
at IBA, Karachi.
I'm going to speak
on basically a combination
of three topics;
strategy, positioning,
business models,
and I will try to
explain how they differ.
0:28
Basically, I will start
with positioning,
what is positioning?
Then I will go on
to business model,
strategy, then strategy
and business model, and
how they are linked.
Then VRIO framework.
That's a new framework
on the block for
creating a competitive
advantage besides SWOT.
I will after that,
do a review of
business model versus strategy.
Then I will take all these
three items together and
show where the
commonalities are.
I will take the example
of Southwest Airlines and
Starbucks, and then I will
come onto the platform.
1:13
Before I discuss the difference
between business
model and strategy,
let us spend some time
on a related topic,
which is about positioning.
How customers
perceive your brand
relative to the alternatives
available in that category,
and also the competitors
in the market and
even the substitutes
are included.
For sustainable positioning,
you need to find a unique
value for the customer.
Positioning can be
based on the following:
The characteristic
of the product or
the features which the
customer is interested in
The price.
It could be quality or luxury.
It could be the application.
Thus in short, we
need to segment
the market and target
the customer to achieve
the desired positioning
in their mind.
Which is known by
the acronym STP:
segmentation, targeting,
and positioning.
The positioning is about how
your product is perceived
by the target market.
Therefore, advertising plays
a very vital role because it can
establish brand benefits or
create perceptions
about the brand.
So it is a very
important pillar.
Advertising is a very
important brand pillar.
A relevant question is
where your product is
in the consideration set
of the targeted consumer.
As an example in the
cellphone market,
Apple and Samsung are
the two brands of choice
prevalent in the consideration
set of consumers.
The positioning is based
on the experience of
the consumer and their
perception of these two brands.
However, not everybody
purchases these two brands
which have premium
price positioning
hence other brands are also
in the consideration set
of especially
economy-minded customers.
Therefore positioning depends
on the segment you are
targeting and their
experience with those brands.
