The Value Disciplines
model
by Michael Treacy and Fred Wiersema describes three generic
value disciplines. Any company must choose one of these value
disciplines and act upon it consistently and vigorously.
-
Oerational
excellence: superb operations and execution often by providing a
reasonable quality at a very low price. The focus is on efficiency,
streamlining operations, Supply Chain Management, no-frills, volume
counts. Most large international corporations are working out of this
discipline.
-
Product leadership: very strong
in innovation and brand marketing, operating in dynamic markets. The
focus is on development, innovation, design, time-to-market, high
margins in a short timeframe.
-
Customer intimacy: excel in
customer attention and customer service. Tailor their products and
services to individual or almost individual customers. Focus is on CRM,
deliver products and services on time and above customer expectations,
lifetime value concepts, reliability, being close to the customer.
Treacy and
Wiersema argue in their excellent book The
Discipline of Market Leaders that any company must choose to excel in one
discipline, where it aims to be the best - in the world preferably. This
does not mean the other 2 dimensions should be completely neglected, but
rather that the company should aim to be merely 'OK' in these other two
disciplines.
More on
Michael Treacy.
Compare with
Value Disciplines: Core
Competence |
Kay's distinctive capabilities |
Competitive
Advantage |
Experience Curve
More management models
|
