All the Right Moves: A Guide to Crafting Breakthrough by Constantinos Markides

Strategy

By Constantinos Markides

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Sample text

Needless to say, this strategy also meant that this competitor could neither move its boats as fast as Pegasus nor offer as many trips per day. However, in all of its advertising campaigns, the Italian competitor emphasized its low prices and was careful to avoid mention of these relative weaknesses. The success of the other new competitor (the Greek start-up) stemmed from a different definition of the business. " In other words, it was offering a different experience in more exotic destinations than Pegasus.

However, the fact that other companies are playing the game in a certain way and winning does not mean that every company should play the game that way. The questions that Pegasus managers should have asked themselves right from the start are these: "Which game are we really good at? " After asking these questions, they realized that Pegasus had operated in the Aegean for so many years that it had accumulated a lot of knowledge about the < previous page page_45 next page > < previous page page_46 next page > Page 46 islands, their customs, and their history and about the best way to ferry people from one to the other (such as which routes were best depending on the time of year).

In other words, it was offering a different experience in more exotic destinations than Pegasus. This definition led the firm to purchase different kinds of boats and to adopt a strategy intended to serve vacationers interested in such tours. Thus, even though all three competitors appeared to be in the same business, they were really operating under the influence of different definitions. Notice that I am not saying that one definition is better than the others; all three are feasible. The question is, what should Pegasus do given its adopted definition and the fact that it was losing market share?

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