We look at Kenichi Ohmae's model for showing how a business can be successful in a market.. 🥇
In this article we’ll be looking at a framework that was devised to assist companies in developing strategic focus to bring about success. It touches on three subjects that your business should be effective and knowledgeable in, and looks at how each may impact your growth.
The 3Cs model is a framework designed to help companies compete successfully within a market.
The idea is to focus exclusively on the following 3Cs:
If the 3Cs are embedded into your strategy and everything somehow relates to one of them, then you stand a much better chance of success than if you are ignoring one or more.
The 3Cs model is used to analyse and determine the skills and focus a business needs for success.
Customer is a key part of the 3C model and that should come as no surprise. It’s important you understand and develop your product/service with the customer in mind. Some activities and questions to ensure you are customer-centric may include:
Of the above, your segmentation is the most important. How you split your customers, by usage, demographic, product, is a key factor in your understanding and approach to how to engage them successfully.
You may also consider:
Customers are so important that it’s not just the 3C model that refers to them as a critical success area, you may also have encountered Value Disciplines that shares the same idea of needing to be good, or excellent at, the concept of customer focus.
It goes without saying that competitors can have a big impact on your performance and behaviour, so no surprise that the second C in the 3Cs model focuses on this topic. In order to be successful, you need to know where you stand in relation to your competition. Some questions or activities to help you include:
The key thing here is you ensure you have a clear differentiation between your own company and the competitors. Understanding their weaknesses can lead you to the right approach here. You may need to:
You may also consider:
Competitors are always a factor when you’re growing your business, so much so that a Competitor Based Pricing Model is often adopted by companies. It’s not as effective as Value Based, but worth considering when entering a market.
This C is all about looking inwards at your business and understanding the key factors that will ensure you are successful. Some questions may include:
There are two key factors in Corporation to consider:
You may also consider:
It’s important to not do too much at once. Good strategy is as much about saying no to certain activities as it is about pursuing others.
Some advantages of the 3C model are:
The clearest alternative is Porter’s Value Disciplines Model. The Value Disciplines model is a business framework that looks at the three competitive areas a company needs to focus on in order to be successful.
The 3Cs model was invented in 1982 by famous Japanese business strategist Kenichi Ohmae in his publication The Mind of the Strategist
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