By Carlos Tarrasón, Cluster Consulting, Brazil, presented at the 16th TCI Global Conference, Kolding 2013.

1. Strategy design at cluster and company level
Carlos Tarrasón
Breakout Session: Strategic desing thinking – cluster strategy
5 September 2013

2. 16th TCI Conference
Track 2B Cluster Strategy
Strategy design at cluster and company level
5th September 2013
Kolding, Denmark

3. Who am I?

4. What is strategy?

5. How to develop a
cluster strategy?
And a company
strategy?

6. Understand the cluster and the
market..
Example: Bakery cluster in Belo Horizonte

7. .. and follow a methodology
X
1. Define
the business
Y
Z
2. Define
the
business
segments
W
3. Define
attractiveness
and choose
one
X
4. Define
strategies and
choose the best
BA
C

8. 1. Define the business
Bakery sector: Production and commercialization
of flour-based food baked in an oven
Bread CookiesCakes, Pastries, Pies

9. 2. Define business segments
Product
Value chain
Demand needs

10. Bakery business segments
FRESH
(SHORT LIVE)
NO FRESH
(LONG LIFE)
Whole sale
B 2 B
Retail
B 2 C
Industrial
(preservatives)
Artesan
(par-baked)

11. 3. Choose one segment
Bargaining
power of
suppliers
Bargaining
power of
buyers
Rivalry
Entry barriers
Substitute products

12. Which segment is better for
the cluster?
FRESH
(SHORT LIFE)
NO FRESH
(LONG LIFE)
Whole sale
B 2 B
Retail
B 2 C
Industrial
(preservatives)
Artesan
(par-baked)

13. And for a company?
FRESH
(SHORT LIFE)
NO FRESH
(LONG LIFE)
Whole sale
B 2 B
Retail
B 2 C
Industrial
(preservatives)
Artesan
(par-baked)

14. 4. Choose your strategy
BA
C

15. Main variables to compete in
“Fresh Retail”
-
-
Service
+
Quality
Comom Gourmet Gastronomy
Bread
Bread
+ casual
food
Bread
+
Restaurant

16. Strategies in “Fresh Retail”
-
-
Service
+
QualityCommon Gourmet Gastronomy
Bread
Bread
+ casual
food
Bread
+
Restaurant
Specialized
Bakery
Bakery and
fresh casual
Bakery and
“café”
Bakery and
Chef
Restaurant
Regular
bakery

17. Cluster most suitable strategies
-
-
Service
+
QualityComom Gourmet Gastronomy
Bread
Bread
+ casual
food
Bread
+
Restaurant
Specialized
Bakery
Bakery and
fresh casual
Bakery and
“café”
Bakery and
Chef
Restaurant
Regular bakery

18. Different strategies =
Different KSF
 Quality
 Product mix: bread,
fresh food-service
products
 Productivity by
volume
 Efficient service
 Quality & Identity
 Product mix by
consumption
moment
 Product mix: Special
breads, ultra fresh
food-service and
gourmet products
 Cross
specialized
production units
 Differentiated service

19. Innovation for differentiation
has to happen at the different
levels (cluster, companies, etc)

20. Business models for
the main strategies
Food solutions
Commercial
To GO
To STAY
Indulgence
Residential
X X X X
Own
Outside
High
Med-Low
What
Where
purchases
Where
consumes
Production Income

21. To innovate we have to pursue
innovation and follow a
methodology

22. And understand the market
references
Empresas e instituições
em São Paulo
Empresas em RJEmpresas e instituições em San
Francisco
Empresas em Los Angeles

23. Thanks to the institutions that support this work