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    The 3C

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    Pankaj Kumar
    The 3C's Model developed by Kenichi Ohmae focuses on three key factors for business strategy success: the Corporation, the Customer, and the Competitors. A strategic triangle is formed by integrating these three C's. For the Corporation-Based Strategy, a company aims to maximize its strengths relative to competitors in critical functional areas. The Customer-Based Strategy's primary goal is customer interest over shareholders; segmentation helps understand customers. The Competitor-Based Strategy examines ways to achieve differentiation in functions like purchasing, engineering, and sales by exploiting differences in image, profit/cost structure, and fixed/variable costs ratios.

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    The 3C

    Uploaded by

    Pankaj Kumar
    236 views4 pages
    The 3C's Model developed by Kenichi Ohmae focuses on three key factors for business strategy success: the Corporation, the Customer, and the Competitors. A strategic triangle is formed by integrating these three C's. For the Corporation-Based Strategy, a company aims to maximize its strengths relative to competitors in critical functional areas. The Customer-Based Strategy's primary goal is customer interest over shareholders; segmentation helps understand customers. The Competitor-Based Strategy examines ways to achieve differentiation in functions like purchasing, engineering, and sales by exploiting differences in image, profit/cost structure, and fixed/variable costs ratios.

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    The 3C's Model developed by Kenichi Ohmae focuses on three key factors for business strategy success: the Corporation, the Customer, and the Competitors. A strategic triangle is formed by integrating these three C's. For the Corporation-Based Strategy, a company aims to maximize its strengths relative to competitors in critical functional areas. The Customer-Based Strategy's primary goal is customer interest over shareholders; segmentation helps understand customers. The Competitor-Based Strategy examines ways to achieve differentiation in functions like purchasing, engineering, and sales by exploiting differences in image, profit/cost structure, and fixed/variable costs ratios.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    236 views4 pages

    The 3C

    Uploaded by

    Pankaj Kumar
    The 3C's Model developed by Kenichi Ohmae focuses on three key factors for business strategy success: the Corporation, the Customer, and the Competitors. A strategic triangle is formed by integrating these three C's. For the Corporation-Based Strategy, a company aims to maximize its strengths relative to competitors in critical functional areas. The Customer-Based Strategy's primary goal is customer interest over shareholders; segmentation helps understand customers. The Competitor-Based Strategy examines ways to achieve differentiation in functions like purchasing, engineering, and sales by exploiting differences in image, profit/cost structure, and fixed/variable costs ratios.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    The 3C's model points out that a strategist should focus on the corporation, customers, and competitors when developing a business strategy in order to achieve sustained competitive advantage.

    The three main factors that must be taken into account are the corporation, the customer, and the competitors.

    Some ways a company can segment its customers mentioned in the text are by objectives, customer coverage, and changes in customer mix over time.

    The 3C's Model is a strategically look at the factors needed for success.

    It was developed by Kenichi Ohmae, a business and corporate strategist. The 3Cs model points out that a strategist should focus on three key factors for success. In the construction of a business strategy, three main players must be taken into account: 1. The Corporation 2. The Customer 3. The Competitors Only by integrating these three Cs (Corporation, Customer, Competitors) in a strategic triangle, a sustained competitive advantage can exist. Ohmae refers to these key factors as the three Cs or strategic triangle. 1. The Corporate-Based Strategy The Corporation needs strategies aiming to maximize the corporations strengths relative to the competition in the functional areas that are critical to achieve success in the industry. The h care phone aiming to satisfy the health needs which should be regularly checked. The basic aim is to serve those people who are suffering with problems like blood pressure, diabetes, health problems. - Selectivity and sequencing The corporation does not have to lead in every function. If it can gain decisive edge in one key function, it will eventually be able to improve its other functions of the competition which are now average. Company had chosen this product because so that people can continuously check on healths who are suffering with the above mentioned problems.

    2. The Customer-Based Strategy - The Customer Clients are the base of any strategy according to Ohmae. Therefore, the primary goal supposed to be the interest of the customer and not those of the shareholders for example. In the long run, a company that is genuinely interested in its customers will be interesting for its investors and take care of their interests automatically. Segmentation is helping to understand the customer. The company mainly focuses on health issue of the people. Most of the people are suffering from these kind of problems, so the company wants to help those so that can continuously check on their health issues.

    - Segmenting by objectives Here, the differentiation is done in terms of the different ways different customers use the product. Take coffee, for example. Some people drink it to wake up or keep alert, while others view coffee as a way to relax or socialize (coffee breaks). - Segmenting by customer coverage This type of strategic segmentation normally emerges from a trade-off study of marketing costs versus market coverage. There appears always to be a point of diminishing returns in the cost-versus-coverage relationship. The corporation's task, therefore, is to optimize its range of market coverage, be it geographical or channel, so that its cost of marketing will be advantageous relative to the competition

    - Changes in customer mix: Such a market segment change occurs where the forces at work are altering the distribution of the user-mix over time by influencing demography, distribution channels, customer size, etc. This kind of change calls for shifting the allocation of corporate resources and/or changing the absolute level of resources committed in the business, failing which severe losses in the market share can occur. 3. The Competitor-Based Strategy Competitor based strategies can be constructed by looking at possible sources of differentiationing functions such as: purchasing, design, engineering, sales and servicing. The following aspects show ways in order to achieve this differentiation. This type of product is first time introduced in the market, so it has an edge over its competitor. They have an advantage of first initiative, and according to the plans if all the things goes well it will capture a huge market, especially in urban areas.

    - Power of image When product performance and mode of distribution are very difficult to distinguish, image may be the only source of positive differentiation. - Capitalizing on profit- and cost structure differences Firstly, the difference in source of profit might be exploited, from new products sales etc. Secondly, a difference in the ratio of fixed costs and variable costs might also be exploited strategically. A company with

    lower fixed cost ratio can lower prices in a sluggish market and hence gain market share.

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