Strategy Wheel What Is a Strategy Wheel? Keywords Strategic strengths Competitor analysis Marketing
A strategy wheel is a visual representation and a
other things than a company’s strategic position.
quick tool to review a company’s strengths (see
For example, design concepts can be analysed and
figure 2.2). A strategy wheel presents the company’s
reviewed using the strategy wheel (see fig. 2.1).
competencies on the axes, and the scores of the
The axes represent design requirements on which
competencies on those axes. By using the diagram,
the design concepts are evaluated. The strategy
you obtain a quick understanding of the company’s
wheel then yields a visual representation of the
strategic strengths. Often it is useful to construct
scores of the different design concepts on the design
strategy wheels of a company’s direct competitors.
requirements. Also, there are various adaptations
A product innovation process (see section 1.2) starts
of the strategy wheel (for example the ‘EcoDesign
with a clear understanding of the current situation
Strategy Wheel’, in this section).
of a company. The need
fig. 2.1 Strategy Wheel (Buijs and Valkenburg, 1996)
for a new product arises
finances product portfolio
The strategy wheel is sometimes used to compare
technical know-how
When Do You Use a Strategy Wheel?
from an understanding of a
A strategy wheel is usually applied in the beginning
company’s strategic strengths
of a new product development process in order to
and weaknesses, and the
present the strategic strengths of a company.
opportunities in the market. A thorough analysis of the
export know-how
development
How to Use a Strategy Wheel?
current situation of a company
Starting Point
yields an understanding
The results of an internal analysis form the starting
of the company’s strategic
point for the use of the strategy wheel: a clear
strengths (for example:
understanding of the company’s strategic strengths in
technical know-how, product
relation to its direct competitors.
portfolio, development
marketing
management
(capability), financial position,
Expected Outcome
export know-how, marketing,
The outcome of the use of the strategy wheel is a
organisation and personnel,
visual representation and a better understanding of
management).
the company’s strategic strengths.
organisation organisation&&personnel personel
Delft Design Guide | Part 2 | Creating a Design Goal | Strategy Wheel –
2.1