Ohmae’s business model

Introduction to 3C model

Developed by the Japanese strategy guru Kenichi Ohmae

Enlists three significant key factors which gives sustained competitive advantage

The 3C’s model

Customer

Corporation

Competitor

Sustained Competitive advantage

Organizational Examples of the model

Corporation

Corporate‐based strategies are functional in nature. They aim to maximize the Corporation's strength by following ways :-

– Selectivity and sequencing Ex. Vodafone

– Make or buy Ex. Nelco

– Cost effectiveness Ex. Ambuja Cements

Customers

Corporation must segment the consumers in order to establish a strategic edge over its competition

There are two ways in which differentiation is done,

– Segmentation by objectives Ex. Mont Blanc

– Segmenting by customer coverage Ex. Santoor

Competition

Strong and sustained differentiation vis‐a‐vis competitors form the core of competitor based strategies

It can be constructed based on the following parameters :-

– Power of image Ex. Harley Davidson

– Capitalizing in profit and cost structure differences Ex. Big Bazaar

Case Study

Organization :- Pratham NGO

Mission- To ensure “Every Child in School and Learning Well”

Program- Read India- “Read India” program helps to improve the reading, writing of

the children in the age group of 6‐14 years.

3 C’s model for Pratham

Competition

Customers

Corporation

Other NGO’s, other CSR

activities

Promoters,Public

Pratham

Japanese win Strategy

Enter low endof the market

Expand to medium and high ends

“Win the World”

Focused Grouptarget marketing

Marketing usingsocial media

“Mega Events”

The 3C Advantage

Corporation

Simplicity of implementation Trustworthy and award winning organization High proportion of revenue earnings into core operations

Customer

Value in the form of branding, (eg. Pratham supported by Fair and Lovely Foundation)

Students internships and concurrent project certificates

Competition

Promoter value Transparency in workings Organizational vision as a transparent and accountable organization

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