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Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1993
Length: 13 pages

Abstract

In today''s fast-changing competitive environment, strategy is no longer a matter of positioning a fixed set of activities along that old industrial model, the value chain. Successful companies increasingly do not just add value, they reinvent it. The key strategic task is to reconfigure roles and relationships among a constellation of actors-- suppliers, partners, customers--in order to mobilize the creation of value by new combinations of players. The authors provide three illustrations of these new rules of strategy. IKEA has blossomed into the world''s largest retailer of home furnishings by redefining the relationships and organizational practices of the furniture business. Danish pharmacies and their national association have reconfigured their relations with customers, doctors, hospitals, and drug manufacturers, to enlarge their role, competencies, and profits. French public-service concessionaires have mastered the art of conducting a creative dialogue between their customers--local governments in France and around the world- -and a perpetually expanding set of infrastructure competencies.

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Abstract

In today''s fast-changing competitive environment, strategy is no longer a matter of positioning a fixed set of activities along that old industrial model, the value chain. Successful companies increasingly do not just add value, they reinvent it. The key strategic task is to reconfigure roles and relationships among a constellation of actors-- suppliers, partners, customers--in order to mobilize the creation of value by new combinations of players. The authors provide three illustrations of these new rules of strategy. IKEA has blossomed into the world''s largest retailer of home furnishings by redefining the relationships and organizational practices of the furniture business. Danish pharmacies and their national association have reconfigured their relations with customers, doctors, hospitals, and drug manufacturers, to enlarge their role, competencies, and profits. French public-service concessionaires have mastered the art of conducting a creative dialogue between their customers--local governments in France and around the world- -and a perpetually expanding set of infrastructure competencies.

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