No company can be successsful today if it tries to be all things to all people.
Rather, the most successful companies – the Market Leaders – select a unique value that they endeavour to deliver to their chosen market segment better than anywone else.
So says Michael Treacy and Fred Wiersema in their book The Discipline of Market Leaders which I read over summer. If you are really wanting to choose an over-arching strategy to set your company apart in the marketplace, this book might be a good place to start.
To decide on your path to become a Market Leader you first need to make 3 decisions:
- Your value proposition – the promise your company makes to deliver a unique mix of price, quality, performance, convenience, etc.
- Your value-driven operating model – the systems, business structure and culture by which the value is delivered.
- The value discipline – how your value proposition and operating model can be combined to become the best in that market.
The three Value Disciplines choices are:
- Operational Excellence – Middle of the market products at the best price with least inconvenience. Value pricing and hassle-free service
- Product Leadership – Cutting edge products that push the performance envelope. Best products and constant innovation to offer improved products year on year.
- Customer Intimacy – Building long term customer relationships by delivering specifically what the customer wants. Best service and going the extra mile.
If you think “I want my company to deliver all three value disciplines”, then think again. Trying to deliver on all three will leave you stranded in the middle and failing to create any impact in the market. Worst case scenario is that you will fail. Imagine these value disciplines as 3 corners of a triangle. Decide which corner you will aim at and use as the guiding principle in building all facets of your business.
A good place to start on this journey is to go through the Trades Coach Your Foundations workbook and review process. From that we can put a high-level strategic plan for your business and help you become a Market Leader.
Contact me HERE to start a discussion.