Value Disciplines Model, in the broadest terms, can be defined as a strategy framework focusing on three competitive areas. Michael Treacy and Fred Wiersema assume that a company will always succeed in what it is good at in their book Value Disciplines. The opinions of outside parties, such as the organization’s customers and suppliers, are what shape this value stance.
Main Benefits of The Value Disciplines Model
The Value Disciplines Model helps you:
- Stand out from the Competition
- Gain a prominent place in the market
- Drive growth and increase the value proposition
Explanation of The Value Disciplines Model
A business framework called the Value Disciplines model examines the three areas of competition where a company must concentrate to succeed. These fields of study are customer intimacy, product leadership, and operational excellence. According to Treacy and Wiersema’s inspiring piece, a business must distinguish itself in one of the three areas to become a market leader:
Customer Intimacy
Refers to which extent a business grasps the customer in detail/particularly. This helps companies to serve their customers more carefully, hence creating a personalized and proper customer experience.
Product Leadership
Focuses on measuring a company’s ability to come up with new products, thus being a pioneer in its sector. This concept is directly linked to the R&D capacity and investment of a company. Scoring higher in this area helps companies to stay ahead of the competition, hence increasing their market share.
Operational Excellence
Major emphasis is on processes through which companies create a frictionless environment for their customers. Mastering this concept helps companies to create a unique experience for their customers by not only emphasizing the product’s cheapness/price but service quality.
How to Apply the Value Disciplines Model
Position your product competitively via BOWMAN’S STRATEGY CLOCK. Using this strategy, you can analyze your position in the market. To foresee the possible future strategies that might be adopted by the competitor use Porter’s Four Corners Model.
Choose the right generic strategy using PORTER’S GENERIC STRATEGIES. To evaluate a company’s resources and capabilities, use VRIO Framework: Ensuring Long-Term Competitive Advantage.
Distinguish your business from the competitors via Buyer Persona: Picture Your Ideal Customer. On the other hand, to understand and redesign your customers’ journeys use our ‘How to Design an Effective Customer Journey to Relieve Your Customers’ Pains?’ article.
Additional Tips and Readings
- Manage Current Performance While Maximizing Future Growth via MCKINSEY’S THREE HORIZONS OF GROWTH
- Identifying the extent of competition in which businesses could fate use HAMBRICK AND FREDERICKSON’S STRATEGY DIAMOND
- Lafley and Martin’s FIVE-STEP STRATEGY MODEL helps you to focus on the most critical aspects of strategic planning.
Contact us to decide what your business will be great at via the Value Disciplines Model.
