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Anticipate events that change the rules for success. |
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When the Minutemen faced the Redcoats on the open battlefield of Concord in the traditional frontal confrontation of the time, the Minutemen lost. Then, the Minutemen made a fundamental shift in their battle tactics and fired on the Redcoats from behind stone fences as they returned to Boston. This shift in tactics initiated a strategic turn in combat as the new strategy of skirmishing contributed to the success of the American revolution. |
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External Strategic Turns: Wal-Mart's initial strategy focused on small towns. Wherever it invaded, competitive merchandising strategy was changed forever. The advent of the mass-merchant at one extreme of retailing and the specialty boutique at the other reshaped merchandising strategies across a wide variety of industries. |
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ESPN is an example of a cable network that heralded a new strategy in marketing. ESPN doesn't have viewers; it has fans that make it a competitive powerhouse. Originally a network with a lot of sporting events, ESPN has reshaped itself into a network for sports junkies. It supplies sporting news and events to every single continent including Antarctica.
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Internal Strategic Turns: At the Tactical Air Command during six and one-half years of General Bill Creech's leadership, dramatic improvements in combat readiness were made with no additional people or money. Out-for-maintenance aircraft were reduced 71 percent, and monthly sorties increased 80 percent (the productivity bottom line). Fighter parts delivery time was reduced dramatically, and aircraft accident safety increased 275 percent. As a result, the combat capability of the Tactical Air Command doubled and billions of dollars were saved. |
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To achieve this awesome record of reshaping his own organization, Creech changed the internal operating strategy to focus on decentralization of authority. His commanders immersed themselves periodically in operationsfor example, spending a week with a night maintenance crew. Throughout his command, he applied the principles of quality management as outlined in his best selling book The Five Pillars of TQM (product, process, organization, leadership, and commitment).4 |
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