MyTechnologyCompany.com

Company Strategy Mapping (CSM) involves breaking down how your competitors create value for their shareholders and customers. It is definitely not an easy thing to do, but I have attached a couple of diagrams that will give you a good starting point on what to think about. The first diagram breaks down a company into four major areas (financial, customer, internal, and information). Your job is to fill in the areas where the company is exceptional. For example, Walmart would have its Supply Chain Management practices highlighted in the Internal Operations area. When finished, you should have in one simple diagram a visualization of how this company competes in this industry. Adapted from Kaplan & Norton The second diagram maps out all the players involved in getting the final product to the end user. The goal of this diagram is to note to whom the profits and power flow. By understanding the power dynamics of the supply chain, you can use it to better understand the position of competitors and your own company. Usually companies will be interested in strategies that allow them to gain power within their supply chain. These two simple diagrams help one better understand their industry, competitors, and themselves. Keep in mind they are only one piece of the puzzle. To truly understand the competitive environment, you need to do the full analysis.