Friday, August 17, 2007

Marco's Focus

Marco's fruit stand is where you would go if you were a customer looking for the best tasting organic fruits. If you're looking for low prices and tons of selection, then you have come to the wrong stand. Marco has chosen to compete by delivering a superior product. This is his value proposition. He has resisted the urge to compete on price and argues his product is not a commodity.

Marco has chosen to invest in land nearby where he can grow his own products and control the process. He spends a large amount of time studying the latest farming methods and processes.

He has hired several employees that run the stand during the times when he is not there. He has trained them rigorously on the products and the farming techniques, as well as the nuances of taste. They can answer just about any question a customer might have about the product.

At the same time, Marco understands that customers have threshold standards for other types of value such as price and selection. He knows that he has to control his costs enough to maintain the threshold and not risk losing demand. And, he knows he cannot limit his product mix too much. This is the balance of his business.

Marco makes decisions, hires employees, creates processes, and educates himself and his staff all based on his value proposition. That is squirrel-like focus!

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