Developed by the organizational theorist Kenichi Ohmae, the 3Cs model is a framework created to help companies build strategies successfully within a market.
Main Benefits of Ohmae’s 3Cs Model
Ohmae’s 3Cs Model helps you:
- Determine the skill set your business need to achieve success
- Build a sustainable competitive advantage over competitors
- Understand the demand and needs of the customers
Explanation of Ohmae’s 3Cs Model
Ohmae’s 3Cs Model emphasizes that a company’s success depends on its level of understanding of its external environment. A strong strategy must consider 3 main elements: Customer, Competition, and Corporation. Ohmae’s model refers to these 3Cs as the strategic triangle and highlights that a good strategic plan must relate to at least one of the 3Cs.
- Customers
Before everything, know your customer. Their needs and wants are the most crucial point of your business strategy. Proper pricing, a suitable feedback mechanism, and a segmentation strategy are some of the starting points for your customer analysis. For a sustainable future for your company, analyzing the customer base and being customer-centric is essential.
- Competitor
Second, analyze your key competitors. What are the direct and indirect competitions you face? Find out your position in the market competition. Investigating the competitors shows your company’s weaknesses and the areas you need to improve.
- Corporation
Finally, using the previous customer and competitor analysis, determine the key factors that pursue your company to success. Your customer analysis shows your strengths, and competitor analysis shows your weaknesses. Focus on your key product and how it corresponds to your key strengths.
How to Apply Ohmae’s 3Cs Model?
Segment your customers. To assess your customers rightfully, use RFM Analysis & Segmentation and Kotler’s The Five Product Levels; to picture your ideal customer check out Buyer Persona; for pricing, use Van Westendorp’s Price Sensitivity Meter. Also, discover your Customer’s Journey and innovate your product with Empathy Mapping.
Differentiate yourself from your competitors. To visualize your competitive position, use Perceptual Mapping, Porter’s Five Forces, Porter’s Four Corners Model, and TOWS Analysis.
Find out your company’s strengths. To ensure a long-term competitive advantage, use the VRIO Framework; to make your company stand out, look at Unique Selling Proposition, Keller’s Brand Equity Pyramid, and ADL Matrix.
Additional Tips and Readings
As alternative models for the Ohmae’s 3Cs Model, you can also read:
- SOAR Analysis to analyze your company and build a concrete a strategic plan,
- Hambrick And Frederickson’s Strategy Diamond fits every part of your organization’s strategy with each other,
- Lafley And Martin’s Five-Step Strategy Model to craft a well-thought business strategy,
Contact us to don’t let mess distract you and prepare a focused strategy.
