3C's model
The 3C's model of Kenichi Ohmae emphasizes that a strategist should concentrate on 3 fundamental components for success. During building of any business strategy, three main participants must be taken into account:
- The business firm itself.
- The client.
- The competition.
The Strategic triangle
Only by integrating the 3 C's (Customer, Corporate, and Competitor) in a strategic triangle, a maintained competitive reward can exist. Ohmae concerns to these 3 components as the three C's or the strategic triangle.
1: Corporate-based strategies
These strategies intent to make the most of the organization's strengths comparative to the competition in the functional arenas that are vital to achieve success in the industriousness. The organization does not have to head in every purpose to win. If it can gain a critical boundary in one fundamental function, it shall finally be able to meliorate its other functions which are now average.
2: Customer-based strategies
Clients are the cornerstone of any strategy as per Ohmae. There is no question that a business concern's first intrest should to be the concerns of its clients rather than that of its share holders . In the long run, the organization that is really interested in its clients shall be concerning for its investors.
3: Competitor-based strategies
As per Kenichi Ohmae, these strategies can be fabricated by looking at potential sources of distinction in functions such as: design, purchasing, sales, engineering and servicing. Before anything else, the conflict in source of profit might be overworked. For profit from novel product sales, profit from services and so forth. In the second place, a conflict in the ratio of variable cost and fixed cost might also be exploited with regard to strategy. Since a business firm with a lower fixed cost ratio can bring down prices in a inert market. Thus it can acquire market share. This harms the business firm with a more eminent fixed cost ratio. The market price is too abject to absolve its high fixed cost and low volume procedure.
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