Friday, December 2, 2011

Assessing the Big Tangible Picture: Connecting the Dots from the Geographic Terrain to the Marketplace

from Stratfor

The following example focuses on where the actual physical terrain becomes a macro variable in the enhancement of one's strategic position within the regional marketplace.

The dense river network in northwestern Europe (not to mention more roads and railways) affords that region much lower transportation costs. Thus, Northern nations have a significant competitive advantage in exporting. The one trick that the Southern nations (Greece, Italy, Spain, etc.) had up their sleeves—devaluing their currencies to make their exports cheaper—ended with the adoption of the euro. - Stratfor

Germany gained a trade surplus while Italy became stuck with a national debt at 120% of GDP.

In summary, those who have seized the advantages of their location, will usually prevail on the long term.  

Following are some of the questions that we have used to analyze our client's competition:

  • What are the current state and the future state of each competitor?
  • Which competitor has the superior accessibility of the market terrain?
  • Which competitor has the easiest market terrain for reaching their goal?
  • Which competitor has the best approximation to completing their goal?
  • Which competitor has the "greater" strategic vantage of the terrain?
* These general questions are based on the various Art of War principles. It has been rewritten for this post.

Click here, here and here for the latest Euro update.

In summary, how do you and your strategy team viewed the Big Tangible Picture of your marketplace?

Focus on identifying the current state of your terrain. Determine the configuration of your terrain. Then, connect the relevant dots before the competition does. Then reap the rewards.

{The post was updated on 12.05.11 .}

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