The Arc of the Enterprise II

It did not need much in the way of a design-type strategy because its resource position--its patent--insulated it from competition and because the product's value to buyers was so much greater than the cost of making one. 

Consider Xerox's patents on plain paper copying.  By the mid-1950's these patents were rock solid, and it became clear that buyers would be willing to pat three thousand dollars or more for a Xerox machine--a device that cost about seven hundred dollars to manufacture.  Give this large and protected competitive advantage, Xerox did the obvious--it made and sold Xerox machines.

Xerox build factories, produced Xerox plain-paper photocopiers, and build sales and service networks.  It experienced no meaningful competition from any of the old-line wet-process copier companies.  It's challenge was low.  It did not need much in the way of a design-type strategy because its resource position--its patent--insulated it from competition and because the product's value to buyers was so much greater than the cost of making one.

ACTION POINT: What is the challenge level from your competition?  What is your value to your buyers?