Why is it that Casio can sell a calculator more cheaply than Kellogg's can sell a box of corn flakes? Why can FedEx absolutely, positively” deliver your package overnight but airlines have trouble keeping track of your bags? What does your company do better than anyone else? What unique value do you provide to your customers? How will you increase that value next year? As customers' demands for the highest quality products, best services, and lowest prices increase daily, the rules for market leadership are changing. Once powerful companies that haven't gotten the message are faltering, while others, new and old, are thriving. In disarmingly simple and provocative terms, Treacy and Wiersema show what it takes to become a leader in your market, and stay there, in an ever more sophisticated and demanding world. Discipline of Market Leaders: 3 Fundamental Business Strategies. Companies must chose from among one of these three fundamental strategies if they are to build a workable organization. A. OPERATIONAL EXCELLENCE (to deliver quality, price and ease of purchase and use) ☞ Processes for end-to-end product supply and basic service that are optimized and streamlined to minimize cost and provide hassle-free service ☞ Operations that are standardized, simplified, tightly controlled and centrally planned, leaving few decisions to rank-and-file employees ☞ Management systems that focus on integrated, reliable, high-speed transactions and compliance to norms ☞ A culture that abhors waste and rewards efficiency B. PRODUCT LEADERSHIP (creating the best products or services) ☞ A focus on the core processes of invention, product development, and market exploitation ☞ A business structure that is loosely knit, ad hoc, and ever-changing to adjust to entrepreneurial initiatives and re-directions that characterize working in unexplored territory ☞ Management systems that are results-driven, that measure and reward new product success, and that don't punish the experimentation needed to get there ☞ A culture that encourages individual imagination, accomplishment, out-of-the- box thinking, and a mind-set driven by the desire to create the future C. CUSTOMER INTIMACY (delivering what specific customers want) ☞ An obsession with the core processes of solution development (helping the customer understand exactly what is needed), results management (ensuring the solution gets implemented properly), and relationship management ☞ A business structure that delegates decision-making to employees who are close to the customer ☞ Management systems that are geared towards creating results for carefully selected and nurtured clients ☞ A culture that embraces specific rather than general solutions and thrives on deep and lasting client relationships
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