Difference between revisions of "3C's Model"
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| − | The 3C's | + | The 3C's Model is a business model, which offers a strategic look at the factors needed for success. It was developed by business and corporate strategist Kenichi Ohmae. Only by integrating these three, a sustained [[Competitive Advantage|competitive advantage]] can exist. Ohmae refers to these key factors as the three C’s or strategic triangle.<ref>Definition of the 3C's Model [https://en.wikipedia.org/wiki/3C%27s_model Wikipedia]</ref> |
| − | The 3C’s model points out that a strategist should focus on three key factors for success. In the construction of a | + | The 3C’s model points out that a strategist should focus on three key factors for success. In the construction of a [[Business Strategy]], three main players must be taken into account: |
| − | '''1. The | + | '''1. The Customer''' - The customers are the basis for any corporation according to Kenichi Ohmae. Without a doubt, a corporation’s foremost objective ought to be the interests of its customers rather than those of its stockholders or other parties. What is important are elements like needs, requirements, demands, problem areas, buying motives, value components, decision-makers, etc. Segmentation of objectives (use of products) and customers (geography, age, social interests ) and the market (potential customers, competitors) are important for constructing and adopting a strategy. |
| − | '''2. The Competitors''' - According to Kenichi Ohmae these | + | '''2. The Competitors''' - According to Kenichi Ohmae these strategies can be constructed by looking at possible differentiation in functions such as purchasing, design, engineering, sales and maintenance. One of the most important factors is image and this can provide the necessary power. Both Sony and Honda for example, sell more than their competitors because they invest more in public relations and advertising. Smaller corporations and organizations can use franchise concepts or low margins and make the necessary investments in service. |
| − | '''3. The Corporation''' - The Corporation needs to focus on the maximization of its strengths. As a result, the corporation can influence the functional areas of the competition that are critical to achieve success within a certain | + | '''3. The Corporation''' - The Corporation needs to focus on the maximization of its strengths. As a result, the corporation can influence the functional areas of the competition that are critical to achieve success within a certain industry. Focusing on a key functional area may create a decisive improvement in other functions of the competition. (for example quality improvement). By functional areas is meant for example culture, image, products, services, technology, etc. It is also important for a corporation to make informed decisions about subcontracting (capacity, cost structure, significant strategic advantages) and how effectively this can be realized with respect to cost reduction (selective purchasing, stock management, choice of commodities, use of automation).<ref>3C model by Kenichi Ohmae [http://www.toolshero.com/strategy/3c-model-ohmae/ Tools Hero]</ref> |
[[File:3C's_Model.jpg|200px|3C's Model]]<br /> | [[File:3C's_Model.jpg|200px|3C's Model]]<br /> | ||
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====Further Reading==== | ====Further Reading==== | ||
| − | *Summary of the | + | *Summary of the Strategic Triangle by Ohmae-Abstract[http://www.valuebasedmanagement.net/methods_3C's.html Value Based Management] |
*Situation Analysis Using 3C's Model *[https://www.linkedin.com/pulse/situation-analysis-using-3cs-model-hector-hernandez Hector Hernandez] | *Situation Analysis Using 3C's Model *[https://www.linkedin.com/pulse/situation-analysis-using-3cs-model-hector-hernandez Hector Hernandez] | ||
*The 3C's of a great B2B [[marketing]] strategy[http://www.profitguide.com/manage-grow/strategy-operations/the-3-cs-of-a-great-b2b-marketing-strategy-30480 Profit Guide] | *The 3C's of a great B2B [[marketing]] strategy[http://www.profitguide.com/manage-grow/strategy-operations/the-3-cs-of-a-great-b2b-marketing-strategy-30480 Profit Guide] | ||
*Introduction to Ohmae's [[Business Model]] [http://www.slideshare.net/sarthak8/ohmaes-3-cs-model Sarthak Ranka] | *Introduction to Ohmae's [[Business Model]] [http://www.slideshare.net/sarthak8/ohmaes-3-cs-model Sarthak Ranka] | ||
Revision as of 18:28, 25 November 2022
The 3C's Model is a business model, which offers a strategic look at the factors needed for success. It was developed by business and corporate strategist Kenichi Ohmae. Only by integrating these three, a sustained competitive advantage can exist. Ohmae refers to these key factors as the three C’s or strategic triangle.[1]
The 3C’s model points out that a strategist should focus on three key factors for success. In the construction of a Business Strategy, three main players must be taken into account: 1. The Customer - The customers are the basis for any corporation according to Kenichi Ohmae. Without a doubt, a corporation’s foremost objective ought to be the interests of its customers rather than those of its stockholders or other parties. What is important are elements like needs, requirements, demands, problem areas, buying motives, value components, decision-makers, etc. Segmentation of objectives (use of products) and customers (geography, age, social interests ) and the market (potential customers, competitors) are important for constructing and adopting a strategy.
2. The Competitors - According to Kenichi Ohmae these strategies can be constructed by looking at possible differentiation in functions such as purchasing, design, engineering, sales and maintenance. One of the most important factors is image and this can provide the necessary power. Both Sony and Honda for example, sell more than their competitors because they invest more in public relations and advertising. Smaller corporations and organizations can use franchise concepts or low margins and make the necessary investments in service.
3. The Corporation - The Corporation needs to focus on the maximization of its strengths. As a result, the corporation can influence the functional areas of the competition that are critical to achieve success within a certain industry. Focusing on a key functional area may create a decisive improvement in other functions of the competition. (for example quality improvement). By functional areas is meant for example culture, image, products, services, technology, etc. It is also important for a corporation to make informed decisions about subcontracting (capacity, cost structure, significant strategic advantages) and how effectively this can be realized with respect to cost reduction (selective purchasing, stock management, choice of commodities, use of automation).[2]
source: mba skool
See Also
- Business Strategy
- IT Strategy
- e-Strategy
- IT Governance
- Enterprise Architecture
- IT Sourcing
- IT Operations
- CIO
References
- ↑ Definition of the 3C's Model Wikipedia
- ↑ 3C model by Kenichi Ohmae Tools Hero
Further Reading
- Summary of the Strategic Triangle by Ohmae-AbstractValue Based Management
- Situation Analysis Using 3C's Model *Hector Hernandez
- The 3C's of a great B2B marketing strategyProfit Guide
- Introduction to Ohmae's Business Model Sarthak Ranka