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of competitors eating each other. They point out that there is a way to be in a blue ocean, where competitors are not a factor. The problem is that all of their examples are based on inventions—on a customer need that was not recognized before. This is not an effective strategy because the risk is too high. The need may not be a real need. In addition, the process for turning a need into a recognized need is not easy to do. Many companies have gone bankrupt trying to do so. We want to be in the blue ocean without the high risks. The S&T tree provides a way to achieve this. The S&T trees are focused on needs that are both real and recognized. In addition, the entire plan is focused on how to achieve the goal without taking real risks.

Porter (2008) explains how five competitive forces need to be considered when determining the strategy: established rivals, customers, suppliers, entrants, and substitute offerings. Both forces of customers and suppliers are about the power they have to pressure the company into getting what they want. Both are not relevant with respect to the S&T tree because the S&T trees provide a way to have a decisive competitive edge that no significant competitor can duplicate in the short term. The S&T trees typically entail synchronizing several functional implementations of TOC. Each implementation consists of making paradigm shifts from the traditional ways of managing. Making just one paradigm shift is not easy to do. Therefore, making more than one would be difficult for a competitor to do. Eventually, a competitor will probably be able to do so. However, the company will be prepared because another S&T tree will be ready to implement before the four years are complete. As described earlier, the S&T tree provides the win-win solution between the different links in the supply chain—between the company and its suppliers and between the company and its customers. It is important to note that the market in which we decide to have the DCE is one in which there is significant room for growth, but also one in which the company will not have more than 40 percent of the market share. This is important because the company then has room to continue to grow even if the market is going through a down cycle. The force of substitute offerings is addressed as well with this win-win solution. Porter suggests that the way to limit the threat of substitutes is by offering better value, which is what the S&T tree does.

Porter points out that the force of established rivals can lead to price wars. The S&T trees provide a DCE that is not based on prices. In fact, in many cases the S&T trees enable charging higher prices or earning more money through bonuses based on the DCE achieved. The final force of new entrants is not really a concern either because our solution is win-win for all stakeholders. The S&T trees enable the ability to satisfy the market successfully now and in the future. Therefore, the risk of losing clients is quite low.

Porter recommends using one of three strategies: cost leadership, differentiation, or focus. Cost leadership is about being the leader in the industry based on a given level of quality. The company can choose to sell at average or below-average prices. The cost advantages are achieved through process improvements and locking in large sources of desirable materials, to name a few. The S&T tree enables the ability to achieve this type of strategy. However, it is one that others may be able to duplicate easily in a short period of time. The differentiation strategy is about developing unique attributes for the product or service that results in the company’s customers valuing what they sell. This strategy is achieved by meeting significant needs of the customers. The VV S&T trees are in line with this strategy. Finally, the focus strategy is about using one of the other two strategies to capture a (narrow scope) segment of the market. This strategy is in line with the S&T trees as long as not more than 40 percent of the market share is captured.

Another contribution of Porter is the