Regarding the concepts discussed so far in my blog, don't take my word for it. As you can probably tell, I will use examples pulled from real companies to support the fruit stand concepts. Here is a link to an excellent article from New York Magazine. The article highlights a clear value proposition created by Dunkin Donuts. You will see the different customer value they are targeting.
http://nymag.com/nymetro/news/bizfinance/biz/features/15139/
Showing posts with label management training. Show all posts
Showing posts with label management training. Show all posts
Tuesday, October 23, 2007
Friday, October 19, 2007
All Things to All People
"All things to all people" is not a new statement by any stretch. There is nothing groundbreaking about it. However, this concept seems to take over business strategy and is the enemy to success.
Ray, our second fruit stand owner, seems to have put together a solid business. He focuses on many good things, and at a glance we are tempted to agree he is on the right track. However, if you look at the components of value we outlined in our previous posting, you will see he is spreading his approach too thin. He is attempting to try to deliver differentiated value in multiple areas such as low price, product leadership, intimate service, etc. This is a losing game that will result in a net loss business model.
Redesign your business to deliver focused value to select customers.
Ray, our second fruit stand owner, seems to have put together a solid business. He focuses on many good things, and at a glance we are tempted to agree he is on the right track. However, if you look at the components of value we outlined in our previous posting, you will see he is spreading his approach too thin. He is attempting to try to deliver differentiated value in multiple areas such as low price, product leadership, intimate service, etc. This is a losing game that will result in a net loss business model.
Redesign your business to deliver focused value to select customers.
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!
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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