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Customer Intimacy and Other Value Disciplines

This document discusses three value disciplines that market leaders use to gain and maintain competitive advantages: operational excellence, customer intimacy, and product leadership. It provides examples of companies that have mastered different disciplines, such as Nike focusing on customer intimacy by creating loyal relationships. The document also discusses how Toyota has achieved both operational excellence through its efficient production methods and customer intimacy through strong supplier relationships. In conclusion, the document argues that to be a top company requires mastering value disciplines as well as creating relationships with customers and other stakeholders.

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Phil Ubalde
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286 views1 page

Customer Intimacy and Other Value Disciplines

This document discusses three value disciplines that market leaders use to gain and maintain competitive advantages: operational excellence, customer intimacy, and product leadership. It provides examples of companies that have mastered different disciplines, such as Nike focusing on customer intimacy by creating loyal relationships. The document also discusses how Toyota has achieved both operational excellence through its efficient production methods and customer intimacy through strong supplier relationships. In conclusion, the document argues that to be a top company requires mastering value disciplines as well as creating relationships with customers and other stakeholders.

Uploaded by

Phil Ubalde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Ubalde, Philippe Miguel 09/17/19

BAME101

Customer Intimacy and Other Value Disciplines

Summary

It all starts with the question how do all market leaders win with so much competitors
in their industry? As technology is enhancing every day, our judgement on a product
or a service also changes. Companies like Nike have gained market leadership
because of how its customers value their brand, but how do they remain as the
customers’ choice beating all of its competitors? It is because they value their
customers while mastering one of the value disciplines. 1) The first value discipline
that was discussed is Operational Excellence. It means that they have been masters
of calculating how it will produce, operate, or deliver its product or service
exceptionally with the means of minimizing or maximizing cost. 2) Customer Intimacy
comes in second. Companies that master this value focuses on how they will make
its customers loyal to them regardless of its cost. It may be expensive, but they have
gained customer loyalty. It is not just about the loyalty card that a business gives to
its customers, but it is about creating a relationship between the business,
product/service, and its customers. 3) Product Leadership is the third value
discipline. These companies are the trailblazers and want their product or service to
become pioneering. These companies aim their product at the top level, regardless
of its cost.

Reaction

I can relate the article to different companies that have mastered one or two of these
value disciplines. But the story that I liked the most from the article is the Toyota
Story in the “Master of Two”. We have discussed the company in our Operations
Management class, but until now, it still gets me in awe. They are the top selling
company in the automotive industry while being the most productive and operative.
They not just innovate, but they do an extraordinary job in their operations
management as they use the Just-in-Time system or the Toyota Production System.
It means that they have maintained their relationship with one supplier for each
material while being surrounded by all of them (suppliers), and have it delivered right
on time. By this, their production, labor, and inventory cost decreases at the same
time. In conclusion, relating to this story – I can agree that to be at the top, you must
create a relationship with not just the customers, but also the suppliers and other
stakeholders.

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