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Six steps for creating a winning business strategy with the Delta Model

Contributed by MIT Sloan Executive Certificate holder and guest blogger Juan Ignacio Genovese

Strategy can be defined as thinking about and establishing new ways to reach company goals, and although many examples exist, few models of winning business strategy provide the diversity of tools necessary for actualizing that strategy.

Most readers are aware of the important influence of Michael Porter, author of Competitive Strategy: Techniques for Analyzing Industries and Competitors. However, his model does not necessarily make us take action; rather, it determines what we should be aware of to protect and increment our market share. Another example is The Balanced Scorecard: Translating Strategy Into Action, written by Robert Kaplan and David Norton. However, this book is not a tool for modeling strategy but for measuring the strategic impact of our actions. Although there are many other books about the subject, most do not successfully present a complete strategic model.

While searching for a powerful strategic model to use in my position as a marketing consultant, I discovered MIT Sloan Professor Arnoldo Hax’s The Delta Model: Reinventing Your Business Strategy. The strength of this model is that it puts the customer at the center of the strategy, with the goal of achieving customer bonding. The model is based on application of the eight competencies of the firm—specific strategies developed by Professor Hax that help us accomplish our final goal of customer bonding. Each of these strategies will work for a particular market segment.

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