How we change what others think, feel, believe and do

Three Core Strategies

Disciplines > Leadership > Strategy > Three Core Strategies

Product | Customer | Process | See also

You cannot be the best at everything, so where should you focus? Three big areas you can target are products, customers and processes. Of course all companies pay attention to all of these to a notable extent -- it is just that some companies pick one and make it significant competitive advantage.

Product focus

Companies that focus on products put a lot of effort into research and development. They may have many patents and always seek to stay at the leading edge. They may outsource manufacturing, preferring to spend time inventing and developing.

Diffusion segment

These companies typically focus early in the diffusion curve, when the main market is for early adopters who seek innovation that will give them new benefits in their work. In later markets, they can succeed if they sustain a strong product differentiation from competitors whilst matching them on price.

Heroes

The heroes of the company, as evidenced in the stories that are told, are likely to be the researchers, inventors and technologists.

Customer focus

Companies that focus on customers seek to deliver the best service and customer experience, thereby creating high levels of loyalty and advocacy. Happy customers buy again and tell other people about you.

Diffusion segment

These companies typically focus on the early majority in the main growth period in the diffusion curve, when the market has are ramping up and gaining market share is critical for future success. In earlier markets they can be successful, particularly with service delivery, with early adopters. In later markets they can succeed if they can sustain service differentiation such that customers are prepared to pay a premium.

Heroes

The heroes of the company are likely to be marketers and service people who spend time understanding customers and delivering service. There may well also be attention on suppliers who deliver your goods and services, ensuring they also pay extraordinary attention to customers.

Process focus

Companies that focus on process aim for efficiency, reducing the cost of waste by reducing time and effort in the activities they undertake. Companies that compete on cost need to pay significant attention here and may put significant effort into improvement programs such as Lean and Six Sigma.

Diffusion segment

These companies typically focus later in the diffusion curve, when the market has saturated and where product-margin advantages have been thinned right down. They may well develop this capability in the early majority growth period as they shift from a customer focus to lower-cost process focus.

Heroes

The heroes of the process-focus company are likely to be the operational people who work in the main value-creating business processes and who constantly seek to make these more effective and efficient.

See also

Diffusion