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How Market Leaders Keep Their Edge Research finds that there are three methods with which big companies keep their advantages
How Market Leaders Keep Their Edge Research finds that there are three methods with which big companies keep their advantages
admin
2013-06-12
38
问题
How Market Leaders Keep Their Edge
Research finds that there are three methods with which big companies keep their advantages, and researchers name them three different value disciplines.
1) Discipline of【1】_____Excellence: 【1】_____
The company wins through cost.
These companies usually try to provide customers with【2】_____and 【2】_____
easy service, or both. They may also try their best to cut cost.
Price/Costco is an example.
2) Discipline of Product【3】_____: 【3】_____
This kind of companies usually win with product.
These companies attract customers mainly
by continuously【4】_____their product or services. 【4】_____
In order to achieve this purpose, they have to challenge themselves in three ways:
a) They must be【5】_____ ; 【5】_____
b) They must commercialize their【6】_____ quickly; 【6】_____
c) They must keep【7】_____ 【7】_____
3) Discipline of Customer Intimacy:
Companies of this kind mainly win with intimate【8】_____ 【8】_____
Intimate customer relation is like the relation between close
neighbours. These companies usually try to provide what a particular
customer wants rather than what the【9】_____ wants in general. 【9】_____
These companies regard it important to understand customers and
their need.
【10】_____ is the greatest assets to these companies. What they value is 【10】_____
not instant profit, but relationships.
Cable & Wireless is an example of this type of companies.
【2】
Good morning, everybody. Today we are going to talk about how big companies manage to keep their ad vantages. The title for this lecture can be "How Market Leaders Keep Their Edge".
A research shows that no company can succeed today by trying to be all things to all people. It must in stead find the unique value that it alone can deliver to a chosen market. We have identified three distinct value disciplines. We name the first value discipline operational excellence, the second discipline product leadership, and the last discipline customer intimacy. Choosing one discipline to master does not mean that a company aban dons the other two, only that it picks a dimension of value on which to stake its market reputation over the long term. Now let’s look at these disciplines one by one.
The first value discipline, as we just mentioned, is operational excellence. These companies mainly win through cost. Operationally excellent companies deliver a combination of quality, price, and ease of purchase that no one else in their market can match. They are not product or service innovators, nor do they cultivate one-to-one relationships with customers. They execute extraordinarily well, and their proposition to customers is guaranteed low price or convenient service, or both.
Let me give you an example. Price/Costco is a chain of warehouse club stores. It doesn’t provide a particularly rich selection of merchandise--only 3,500 items, vs. 50,000 or more in competing stores. But as a customer, you don’t have to spend much time deliberating over what brand of coffee or home appliance to select. Price/Costco saves you that hassle by choosing for you. The company carries out rigorous evaluation of leading brands and shrewd purchasing of just the one brand in each category that represents the best value.
That is a good idea, isn’t it? Well, now let’s move on to the second value discipline, which we call product leadership. Companies that follow this discipline usually win with great products. These companies concentrate on offering products with a continuously improving performance. Their proposition to customers is an offer of the best product, period. Moreover, product leaders do not build their positions with just one innovations they continue to innovate year after year, product cycle after product cycle.
Then how can a company continuously put forward new great products? To do this, they usually have to challenge themselves in three ways. First, they must be creative. Being creative means recognizing and embracing ideas that may come from anywhere, both in and out of the company. Second, they must commercialise their ideas quickly. Third and the most important, they must firmly pursue ways to surpass their own latest products or services. If anyone is going to render their technology obsolete, they prefer to do it themselves.
OK, it’s probably time to talk about the third discipline. You see, we call it customer intimacy just now, and many companies do win through customer intimacy. A company that delivers value via customer intimacy builds bonds with customers like those between good neighbours. Customer-intimate companies don’t deliver what the market wants but what a specific customer wants. The customer-intimate company regard it important to know the people it sells to and the products and services they need. It continually tailors its products and services and does so at reasonable prices. Its proposition is.. "We get you the best total solution." The custom- er-intimate company’s greatest asset is its customers’ loyalty.
Customers don’t have to be attracted through expensive advertising and promotion. Customer-intimate companies don’t pursue transactions; they cultivate relationships. They are adept at giving the customer more than he or she expects. By constantly upgrading offerings, customer-intimate companies stay ahead of customers’ rising expectations--expectations that, by the way, they themselves create. Cable ~ Wireless, a long-distance carrier, is a good example of a company that is better than most at building relationships that pay off in repeat sales from loyal customers.
OK, now to sum up. Today we mainly discussed three value disciplines that can help companies to develop and keep their advantages. The first discipline, operational excellence, requires a company to win through cost. It has to try its best to provide customers with the most convenient products or services and, while doing this, try to keep its cost to the minimum. The second discipline, product leadership, requires a company to win through great product. The company has to make continuous efforts to update its products or services. Their advantage is not price or service, but the latest technology. The last discipline, customer intimacy, demands a company to win through close customer relation. The company has to study its customers thoroughly, and pro vide them with the most suitable product or service.
Despite the specialization required of market leaders, we regularly come across managers who don’t buy the idea of having to narrow their operational focus. To these managers we say that if you decide to play an average game, don’t expect to become a market leader. Choosing a discipline is the choice of winners.
OK, I think it’s time for us to wind up our lecture. We really hope that this lecture can give you some idea. Thank you!
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