Discipline of Market Leaders
Define Your Customer, Narrow Your Focus
* Based on The Discipline of Market Leaders, by M. Treacy and F. Wiersema.
- Market leaders: the best at delivering one particular value
(without being bad at other disciplines) - By focusing on one (and one only) value to excel at, they beat competitors who
are
dividing their attention and resources among more than one discipline - Different value disciplines demand different operating models to best capture the value
- Customers know that to expect superior value in every dimension is
unreasonable
(you don’t go to Wal-Mart for best personalized service, or buy sneakers because of cheap prices).
- Product Leadership:
- Provide leading-edge products or useful new applications of existing products or services
- Core process: invention, commercialization + market exploitation + disjoint work procedures
- Exemplars: Apple, Tesla, Nike, Rolex, Harley-Davidson
- Operational Excellence:
- Provide reliable products/services at competitive prices,
delivered with minimal difficulty or inconvenience - Value proposition: guaranteed low price and/or hassle-free service
(also includes time spent to purchase, future product maintenance,
ease of getting swift and dependable service) - Core process: product delivery, basic service cycle + build on standards, no frills fixed assets
- Exemplars: IKEA, McDonald’s, Starbucks, Wal-Mart, Southwest Airlines
- Customer Intimacy:
- Don’t deliver what the market wants, but what a specific customer wants
- Creating results for carefully selected and nurtured clients
- Continually tailors products/services to the customer to offer the ‘best total solution’
- Exemplars: Salesforce, LMS Providers, Home Depot