Dynamic Effectiveness

Abstract

Based on different observations, in theory as well as in practice, we have identified strategies and operations following two different tracks, striving in different directions, despite it being well known they should go hand in hand. For companies challenged by a more and more dynamic business environment with heavier market segmentation, additional marketing channels, increasing globalisation on supplier and customer side, and high pressure on profit margins, the result from this is competitive weakness.The purpose of this article is to switch focus from operational effectiveness and strategic positioning as static success concepts on how to improve industrial distribution, to dynamic challenges of how to continuously manage the interaction between marketing strategies and operations (e.g., logistics) under the influence of a dynamic business environment.From theories in market strategies, logistics, flexibility, and marketing channels together with empirical experience from a best practice case study, we are introducing a model for dynamic effectiveness, de-Mats Abrahamsson is Professor of Logistics Management, Linköping University,

A Typology of Business Model Changes : Cases from Swedish Wood Manufacturing Industry

“…Brege, Stehn and Nord (2014) conceptualize the offering block as a bundle of hardware, software and services, whichin combination with a revenue generation modelleads to a value proposition for customers. The three blocks in Brege, Stehn and Nord's (2014) BM construct are proposed based on the argument about the distinction between operational effectiveness and strategic positioning in doing business (Porter, 1996;Abrahamsson and Brege, 2004), with the operational block on one side and the market position on the other. In addition, although not entirely similar, the idea behind Osterwalder and Pigneur (2010), in the sense that both frameworks consider value proposition to be the connecting point between the firm's resources/activities and its customers.…”