In 1997 Michael Treacy and Fred Wiersema wrote a book where they classify market leaders company based on 3 fundamental Strategies and the Organization they should adapt to their strategy in order to be successful
A. OPERATIONAL EXCELLENCE (to deliver quality, price and ease of purchase and use)
Processes for end-to-end product supply and basic service that are optimized and streamlined to minimize cost and provide hassle-free service- Operations that are standardized, simplified, tightly controlled and centrally planned, leaving few decisions to rank-and-file employees
- Management systems that focus on integrated, reliable, high-speed transactions and compliance to norms
- A culture that abhors waste and rewards efficiency
Exemple of companies: Amazon. Costco, UPS
B. PRODUCT LEADERSHIP (creating the best products or services)
A focus on the core processes of invention, product development, and market exploitation- A business structure that is ad hoc, and ever-changing to adjust to entrepreneurial initiatives and re-directions that characterize working in unexplored territory
- Management systems that are results-driven, that measure and reward new product success, and that don't punish the experimentation needed to get there-work on fast paced Project mode
- A culture that encourages individual imagination, accomplishment, out-of-the- box thinking, and a mind-set driven by the desire to create the future
Exemple of companies:Apple,Intel, BMW
C. CUSTOMER INTIMACY (delivering what specific customers want)
An obsession with the core processes of solution development (helping the customer understand exactly what is needed), results management (ensuring the solution gets implemented properly), and relationship management- A business structure that delegates decision-making to employees who are close to the customer
- Management systems that are geared towards creating results for carefully selected and nurtured clients
- A culture that embraces specific rather than general solutions and thrives on deep and lasting client relationships
Exemple of companies: Nordstrom, Kraft, Disney
It is important to notice that those 3 Strategies are not exclusive, a minimum level is needed to compete on the marketplace, however the Leaders must decide one within which to excel
