3C's Model

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 stock holders 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]

3C's Model
source: mba skool

See Also


  1. Definition of the 3C's Model Wikipedia
  2. 3C model by Kenichi Ohmae Tools Hero

Further Reading