3C Model

Hello, this is XXname of the studentXX
Today is February day and my group number is xxxnumberXXX
Today I’m going to talk about what the 3C model is but first let me give you a bit introduction
This model was developed by Kenichi Ohmae and it is based on the idea that any successful strategy,
which is designed by an organization, must considerer the 3 key players:
1. The company itself.
2. The costumer.
3. The competition.
According to Ohmae, only when these factors are integrated in the business strategic, the company
could get a sustainable competitive advantage.
The determination of strategic actions by the company Management in order to achieve superior
performance in its key success factors and in order to develop a Competitive Advantage in relation
to its competition, must take care the factor mentioned before
Company-based strategies
Strategies based on the company. It corresponds to the internal focus of the entity and must cover
all the processes developed by it from its supplier management to the service provided to the
costumer considering its business culture.
At this point, the entrepreneur must analyze what are the areas in the company that are considered
critical to achieve success in its industry and improve them. The areas that must be analyzed with
special care are:
 Select areas for improvement: the company does not have to lead each value chain process
in order to outperform its competitors; instead of that, it must focus on one or a few areas
that it considers especially important by the costumer, and consequently, the rest of the
secondary areas will be improved .
 Make or buy: the ability to choose when and what is necessary to outsource is critical for
getting a sustainable competitive advantage; To keep the quality at the same time of
achieving maximum efficiency and flexibility y should be the objective of decisions in this
area.
 Profitability: To increase profitability is the priority but without losing the control of costs,
customers, products and other important aspects of the business.
Customer Based Strategies
According to Ohmae, the customers must be the focus of the any company strategic and the main
company concern must be taking care of them. That’s why the company must respond with agility
to the needs of its customers (current and potential ones). Any action that would be taken have to
put the customers as the most important player and their interest lead the company decisions.
Other important part of the customer-based strategy is segmentation and there are two types of
segmentation: by objectives and by customer coverage
The company must make an important effort in customer segmentation, so that, always, it separates
the precise needs of each segment it serves, needs that vary and that the company must be
updating.
Competition based strategies
The company must constantly analyze what the competition does in each area (purchases, design,
research and development, production) and overtake it in each of the processes, especially those
that have priority to the costumer. Ohmae proposes some technique to achieve this:
- The power of an image: when products are very difficult to differentiate, the image transmitted by
the company and the communication process become a great tool.
Exploit the tangible in order to get greater advantage.
- Tactics for "fly weight". Small businesses must look for cheaper ways to differentiate themselves
from their competitors.
- Improvement in the cost structure: to control the fixed cost and try to keep as low as possible the
variable costs could make a significant difference among the company and its competitors.
Thanks for watching this video, have a nice day

Conclusion
The 3C model can be applied in many companies. One of the sectors that could get benefits from
this model is the retail sector, since they are always in search of innovative solutions to fight against
their competitors and against virtual stores, This is why the need to attract customers means that
the company is in the searching for new ways of knowing the real and current needs of customers,
also the need to study the way competitors attract customers and, many times, the need to do an
analysis on the situation of the company In itself. By applying the 3C model in a retail company, it
could result in a change in customer segmentation, and this could be the reason why the customers
will not come back to the store, instead, they go to another which knows their real needs, on the
other hand, the need to change Policies to be more attractive to the costumers, price policies,
delivery, payment methods, can be some examples of this, or on many occasions, to look for
methods similar to competition’s methods in order to try to be competitive, by using technology or
adopting similar methods of sales.
To sum up, any retail company should consider applying the 3C method in order to generate
competitive advantages and get ahead of its physical and virtual competitors

3C Model

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Hello, this is XXname of the studentXX

Today is February day and my group number is xxxnumberXXX

1. The company itself.

Customer Based Strategies

Competition based strategies

Exploit the tangible in order to get greater advantage.

Thanks for watching this video, have a nice day

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