We've covered the three primary ways in which organizations can create value for customers. These groups have been discussed to great extent by several well-known and respected authors such as Micheal Treacy, Michael Porter, and Geoffrey Moore. We're not breaking new ground here. However, we have added a fourth value strategy or value proposition. This can easily be categorized as an organization's "default" strategy. I refer to this strategy as the "we suck less" position. Essentially, any organization that creates a strategy without customer value as the central focus is planning for certain mediocrity. Firms that don't position their entire operating model around a clear and specific value proposition are sure to wind up competing on price. These organizations are basically saying, although most certainly not out loud, that we just attemp to "suck less" than our closest competition. If we are not as bad as our competitor and our price is lower then we win the business.
If you've read previous posts then you know that our fruitstand owner, Ray, has adopted an "all things to all people" strategy. We quickly categorize this strategy as no strategy at all. Where is the squirrel-like focus? Ray, without being aware, has adopted the "we suck less" strategy.
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