Question: In what three ways do Treacy and Wiersema suggest that market leadership can be obtained?
Michael Treacy and Fred Wiersema assume Value Disciplines that a company will always thrive at what it does well. According to Treacy and Wiersema, there are three approaches to achieving market leadership:
1. By being a market leader.
2. Efficiencies in operations
3. By developing a strong relationship with your customers.
The business strategy model developed by Wiersema and Treacy is a marketing model. A model is a useful tool for determining your company's strategy and positioning.
Michael Treacy and Fred Wiersema assume Value Disciplines that a company will always thrive at what it does well. External opinions, such as those of the organization's customers and suppliers, are used to assess its value position. An organization's value position is defined not just by price, but also by other aspects such as the amount of work required to obtain the product or service.
Michael Treacy and Fred Wiersema identify three value disciplines when these rules have been followed.
Operational Excellence - A company that prioritizes cost leadership will constantly strive to provide high-quality goods and services to its clients at reasonable rates and with ease of purchase. Internally, the company emphasizes process simplification. This technique entails making as few mistakes as possible, reducing unnecessary service, standardizing, and growing (scale economies).
Customer Intimacy - The Company considers its customers to be its most significant asset. The company is always striving to suit the needs of its customers, and it primarily provides custom work and one-on-one solutions, with a long-term client connection as a priority.
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